Minnesota's Fortune 500 roster stays strong but stagnant
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Minnesota has long boasted one of the most robust Fortune 500 economies in the nation, but the state's representation of 15 to 20 corporations hasn't changed much in the past 20 years.
Why it matters: Minnesota's economic success has typically come through hometown companies growing big versus luring in existing ones from other places. It could use some more of that, with signs of slowing economic growth and struggles at the state's biggest employers.
State of play: There were 17 Fortune 500s in Minnesota on the 2025 list.
- The top 14 were also on the list in 2008.
- The other three are Solventum, which was spun off from 3M Co., as well as Securian Financial and Fastenal — two long-running companies that bounce on and off the list depending on their revenue.
Between the lines: Minnesota's Fortune 500s have been a big reason for a relatively strong regional economy, but recent data says the state is losing ground on GDP growth.
- A recent Minnesota Chamber of Commerce report said part of the reason for that slowed growth is that the state has the second highest corporate tax rate in the U.S., which discourages investment.
- Some of Minnesota's largest corporations, like Target, UnitedHealth Group and General Mills, have struggled over the past year. All of them have cut jobs and seen their stock price fall more than 25%.
Reality check: Minnesota's Fortune 500 economy is doing just fine, Myles Shaver, University of Minnesota professor and associate dean at the Carlson School of Management, told Axios.
- "We have this very diversified set of companies. It's natural that companies will have sustained periods where it's going really well, and there might be times where it backs off a little bit," said Shaver, who wrote the 2018 book "Headquarters Economy" about the way the Twin Cities benefit from such a strong stable of big corporations.
- Case in point: 3M and C.H. Robinson have had excellent years.
Plus, Solventum keeping its headquarters in the Twin Cities was a huge win, considering it likely had options to go anywhere, Greater MSP CEO Peter Frosch told Axios.
- "That is one way we create Fortune 500 companies," he said. "We have existing large companies that innovate part of their business, spin it off, and then we win that new company."
The bottom line: Shaver is conducting a fresh round of interviews with managers at Minnesota's corporations for an update to his book that will be out next year. He's finding so far that talented people continue to want to stay in the region, but luring them here is more of a challenge.
Companies to watch
Which Minnesota company might be next to crack Fortune's annual list?
Here are three candidates to watch, based on talks with industry experts.
🐺 Arctic Wolf: The Eden Prairie-based cybersecurity company has signaled it wants to go public and has been on an acquisition spree. A 2021 fundraise valued Arctic Wolf at $4.3 billion.
🏥 Gravie: The Minneapolis-based health benefits company has raised more than $263 million and had 450 employees as of February.
🧲 Niron Magnetics: The Minneapolis company uses non-rare Earth minerals to make magnetics that can be used in electric vehicles, wind turbines and other products.
- Frosch called Niron a very promising company given the large market for this clean technology.
Reality check: It usually takes a long time to build a Fortune 500. Shaver noted that most of the ones on the list today are 30 to 40 years old.
- All three of these were founded in 2012 or later.