China now has the most companies on the Fortune 500 list

Walmart is the world's largest company by revenue for the ninth consecutive year, and for the 17th time since Fortune magazine began ranking companies by size in 1995. 

Fortune on Wednesday released its annual Fortune Global 500 list, a ranking of the largest and most profitable corporations worldwide. Saudi Aramco, the sixth-largest company in the world by revenue, is now the globe's most profitable company, with $105 billion in earnings, according to Fortune. 

In 2021, businesses of all sizes faced an uphill climb overcoming financial setbacks triggered by the COVID-19 pandemic. This year, they face new challenges, including inflation, looming fears of a recession and Russia's war in Ukraine. 

"A rebound from the worst depths of the pandemic created a huge tailwind for the world's largest companies by revenue," Fortune list editor Scott DeCarlo said in a statement. "Aggregate sales and profits hit record levels in fiscal year 2021 for the Fortune Global 500."

Fortune editor-in-chief Alyson Shontell also warned of the challenges ahead for businesses as the economy slows. 

"For businesses of every size, the real test will be who can survive and thrive in tough conditions like these, especially if — or when — a recession of unknown length and depth settles in," she said.

Walmart, the nation's largest retailer, saw its shares slide last month after the company told investors to expect lower profits for the rest of 2022 as high inflation limits consumers' ability to spend on discretionary items, like furniture and electronics. 

China flexes corporate muscles

China, including Hong Kong, had 136 companies on Fortune's largest companies list — the most of any nation. The U.S. ranked second, with 124, while Japan was third with 47. And for the first time in the history of the rankings, the aggregate revenue of listed companies based in Chinese-speaking countries surpassed that of U.S. companies on the list.

The total combined revenues of Fortune 500 companies rose 19% over last year to $37.8 trillion — the equivalent of more than one-third of global GDP. Cumulative profits were up 88% over last year, reaching a record $3.1 trillion. The listed companies have a total of nearly 70 million employees around the world.

E-commerce giant Amazon landed at No. 2 on the list, with Chinese-state owned electric company State Grid claiming the third spot. Tech company Apple ranked No.7, and pharmacy chain CVS Health ranked No.10. CVS Health was the only corporation in the top 10 with a female CEO, Karen Lynch.

Here are the top 10 companies on this year's Fortune 500 by revenue (see the complete rankings):

1. Walmart (U.S.)
2. Amazon (U.S.)
3. State Grid (China)
4. China National Petroleum (China)
5. Sinopec Group (China)
6. Saudi Aramco (Saudi Arabia)
7. Apple (U.S.)
8. Volkswagen (Germany)
9. China State Construction Engineering (China)
10. CVS Health (U.S.)