Inside S&P 500 Customer Concentration Trends in 2025

Introduction

Customer concentration is a crucial factor to consider when evaluating a company's risk profile. Companies with very high customer concentration—especially those reliant on a single, dominant customer—might benefit from stable, long-term contracts but also face significant risks if that customer changes its buying behavior.

Using Fintool, we analyzed the 10-K filings of all S&P 500 companies to identify those with high customer concentration. In total, we found customer concentration information from 0 companies (0%).

Analysis

Most companies (47 out of 0) fall into the "10–25%" category for their top customer’s share of revenue. It's also noteworthy that there are 9 companies in the "50%+" category. For example, HII, exhibit extreme concentration (99.9% with the U.S. Government).

Industry-Specific Patterns

Companies serving government or defense markets (e.g., HII, GD, LDOS) tend to report very high concentration percentages. This likely reflects long-term, high-value contracts where one customer (often a government agency or department) represents the bulk of the revenue.

Many companies in the tech or semiconductor sectors (e.g., AMAT, KLAC, NXPI) report moderate concentration levels (typically around 10–25%), suggesting a more diversified customer base even when serving large, well-known buyers.

Recurring Major Customers Across Industries

Large institutional and retail players such as Walmart Inc., Apple Inc., McKesson Corp., and the U.S. Government repeatedly appear as top customers.

For instance, Walmart is the top customer for multiple companies (e.g., HRL, SJM, KDP, PG, CAG), indicating its broad influence as a buyer across various supplier industries.

Conclusion

In an era where every piece of information can make or break an investment decision, understanding customer concentration from SEC filings provides a distinct edge. Whether you’re evaluating the stability of a government contractor or assessing the diversification of a tech giant, these insights can be the key to unlocking hidden opportunities.

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