Learn · Explainer

Customer concentration

When one customer is a large share of sales: the 10% disclosure, named vs. unnamed customers, and examples from PepsiCo, Texas Instruments, Salesforce and RTX.

The short answer

Customer concentration is how much of a company's sales, or of its receivables, comes from one customer or a small group of customers. US rules generally require disclosure when a single customer accounts for 10% or more of revenue. The 10-K may name the customer, as PepsiCo does with Walmart, or it may give only a percentage, as Texas Instruments does.

When the customer is named

PepsiCo's 10-K for 2025 states that sales to Walmart Inc. and its affiliates, including Sam's Club, represented approximately 14% of consolidated net revenue, with sales reported across all of its segments, including concentrate sales to independent bottlers that were used in finished goods sold by them to Walmart. It adds that the loss of this customer would have a material adverse effect on its PFNA and PBNA segments. That is a typical 10-K treatment: the percentage, the name, and a short statement of what would happen if the customer were lost.

Source: PepsiCo 10-K for fiscal 2025, filed Feb 3, 2026

When the customer is not named

Texas Instruments's 10-K for 2025 reports that one end customer accounted for 12% of revenue in both 2025 and 2024, recognized primarily in its Analog segment, and that no end customer accounted for 10% or more of revenue in 2023. It does not name the customer. Salesforce's fiscal 2026 10-K goes the other way: no single customer accounted for 10% or more of total revenue, or of accounts receivable, in the periods presented. Both styles satisfy the usual disclosure: either a 10% customer is identified by size (and sometimes by name) or the company states that there was none.

Source: Texas Instruments 10-K for fiscal 2025, filed Feb 6, 2026 · Salesforce 10-K for fiscal 2026, filed Mar 2, 2026

A government customer

Defense and aerospace companies often have one very large customer: the US government. RTX's 10-K for 2025 reports sales to the US government as a percentage of total net sales, 38% in 2025, and it notes that the figure excludes foreign military sales through the US government. A percentage like that is concentration too; it just happens to be a government rather than a retailer or a manufacturer.

Concentration is a description of the sales mix, not a score. A company can have a large customer for years without a problem, and a company with no 10% customer can still be exposed to a single industry or region. The disclosure tells you where the sales sit; it does not say whether those sales will continue.

Common questions

What is customer concentration?

The share of a company's revenue, or of its receivables, that comes from one customer or a few customers. A common disclosure threshold is 10% of revenue.

Do companies have to name the customer?

Not always. PepsiCo names Walmart. Texas Instruments reports that one end customer was 12% of revenue without naming it. Either way, the 10% size is disclosed.

What if no customer is above 10%?

The company often says so directly, as Salesforce does for fiscal 2026 and 2025, for both revenue and receivables.

Does a 10% customer mean the business is fragile?

Not by itself. It means one relationship is large enough that losing it would be noticeable. The 10-K usually describes that risk; it does not predict whether the relationship will last.

Where do I find it?

In Item 1 (Business), in a revenue note, or in the risk factors. Government concentration at defense companies is often in a 'sales to the US government' table.

Disclosures

Editor holdings: The editor holds no position in any company named on this page. As of Nov 11, 2026.
Compensation: Nobody paid for this page. No affiliate links on this page.
Sources: Each company's own SEC filings, linked next to each number.
Last updated: Nov 10, 2026

General education, the same for every reader. Not a recommendation to buy, sell or hold any security, and it doesn't consider your situation.

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