Walmart: About Sixteen PercentNarrow moat

Procter & Gamble (PG) — moat facet

Walmart buys about $13.9 billion a year from P&G, more than P&G's whole Health Care business sells.

Walmart is the only P&G customer large enough to be named. Sales to Walmart and its affiliates were about 16% of total sales in fiscal 2026, as in fiscal 2025 and fiscal 20241. On net sales of $87,032 million2 that is roughly $13.9 billion3, more than the whole of P&G's Health Care segment, which sold $12,456 million4.

Walmart share of P&G sales (%)16%FY201715%FY201915%FY202215%FY202316%FY202416%FY2026P&G Forms 10-K FY2019, FY2022, FY2025, FY2026
A steady sixth of sales.

The share has been steady for a decade: 16% in fiscal 2017, about 15% from fiscal 2018 to fiscal 2023, and 16% since567. That stability says something about both companies. Walmart needs P&G's brands because shoppers come in for them; P&G needs Walmart because no other retailer reaches so many American households.

The relationship is balanced, which is the moat in miniature. A retailer that dropped Tide or Pampers would lose customers to the store down the road; a supplier that lost Walmart would lose a sixth of its sales. Neither side can walk away, so they bargain, over promotions, shelf space, pricing and the store's own private label.

The risk is that Walmart's weight grows while P&G's growth slows. P&G's organic growth was 1% in fiscal 20268, so any concession on price to its largest customer comes straight out of a thin increase.

The 10-K states the position plainly: "No other customer represents more than 10%"9. Walmart is the only customer P&G has to name, and it has been in that position for every year shown.

Read together, this is a critical, stable relationship. It would become a concern if Walmart's share rose above 18% with P&G's margin falling, because that would mean the largest customer was gaining weight and extracting terms at the same time. About 16% in fiscal 202610 is the current reading.

Moat trajectory: Holding steady

About 16% of sales in FY2024-FY2026; 15-16% for a decade.

The number that tests this moat
Reported
Walmart share of net sales, FY2026
About 16% (about $13.9bn)

The largest customer's weight; a rise above 18% with falling margins would mean it is extracting terms.

Source: P&G Form 10-K, FY2026 ↗
References
  1. ReportedSales to Walmart and its affiliates were about 16% of total sales in fiscal 2026, as in fiscal 2025 and fiscal 2024.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 1 business and Item 2 properties: employees, manufacturing sites, customers, channels, competition and strategy. — FY2026 · publ. 4 August 2026 · source ↗
  2. ReportedOn net sales of $87,032 million that is roughly $13.9 billion, more than the whole of P&G's Health Care segment, which sold $12,456 million.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - consolidated statements of earnings, cash flows and financial position, debt and dividends. — FY2026 · publ. 4 August 2026 · source ↗
  3. Moat Explorer calcOn net sales of $87,032 million that is roughly $13.9 billion, more than the whole of P&G's Health Care segment, which sold $12,456 million.
    Moat Explorer calculation from Procter & Gamble's reported figures ($ millions unless stated; fiscal years end 30 June). Net debt: FY2026 11,296 + 22,842 - 9,942 = 24,196; 24,196 / 54,311 = 0.45 times equity; 24,196 / 19,556 = 1.24 years of operating cash flow; debt due within one year 11,296 / (11,296 + 22,842) = 33% of debt; FY2025 9,513 + 24,995 - 9,556 = 24,952; FY2024 7,191 + 25,269 - 9,482 = 22,978. Capital spending 4,409 / 87,032 = 5.1% of net sales. Adjusted free cash flow over dividends 15,835 / 10,232 = 1.55 times. Dividends paid over net earnings attributable: 10,232 / 16,046 = 63.8% (FY2026); 9,872 / 15,974 = 61.8% (FY2025); 9,312 / 14,879 = 62.6% (FY2024). Buybacks 5,028 / 11,009 = 45.7% of the FY2021 peak. Peer market values on 25 September 2026 ($bn): 132.99 + 68.60 + 34.19 + 34.18 + 32.74 + 22.86 + 10.13 = 335.69, against P&G 339.64; P&G / Clorox 339.64 / 10.13 = 33.5 times. P/E: 339.64 / 16.046 = 21.2 (now); 394.82 / 14.879 = 26.5 (December 2024 over FY2024). Free cash flow yield 15,835 / 339,640 = 4.7%. Goodwill plus Gillette brand 41,276 + 12,800 = 54,076; 54,076 / 126,521 = 42.7% of total assets. Segments (five reportable, excluding Corporate): FY2026 sales 16,023 + 6,918 + 12,456 + 30,314 + 20,401 = 86,112; net earnings 2,672 + 1,529 + 2,404 + 5,632 + 3,930 = 16,167; FY2025 net earnings 2,715 + 1,577 + 2,440 + 5,848 + 4,013 = 16,593; 16,167 / 16,593 - 1 = -2.6%. Segment net earnings changes FY2026: Beauty 2,672 / 2,715 - 1 = -1.6%; Grooming 1,529 / 1,577 - 1 = -3.0%; Health Care 2,404 / 2,440 - 1 = -1.5%; Fabric & Home Care 5,632 / 5,848 - 1 = -3.7%; Baby, Feminine & Family Care 3,930 / 4,013 - 1 = -2.1%. Fabric & Home Care share of segment net earnings 5,632 / 16,167 = 34.8%. Pre-tax margins FY2026: Beauty 3,473 / 16,023 = 21.7%; Grooming 1,966 / 6,918 = 28.4%; Health Care 3,163 / 12,456 = 25.4%; Fabric & Home Care 7,290 / 30,314 = 24.0%; Baby, Feminine & Family Care 5,145 / 20,401 = 25.2%. Net margins FY2023: Beauty 3,178 / 15,008 = 21.2%; Health Care 2,125 / 11,226 = 18.9%; Fabric & Home Care 4,828 / 28,371 = 17.0%; Baby, Feminine & Family Care 3,545 / 20,217 = 17.5%. Three-year growth FY2023-FY2026: Health Care sales 12,456 / 11,226 - 1 = 11.0%; Health Care net earnings 2,404 / 2,125 - 1 = 13.1%; Grooming sales 6,918 / 6,419 - 1 = 7.8%; Baby, Feminine & Family Care sales 20,401 / 20,217 - 1 = 0.9%. Segment capital spending over sales FY2026: Grooming 540 / 6,918 = 7.8%; Baby, Feminine & Family Care 1,520 / 20,401 = 7.5%; Health Care 592 / 12,456 = 4.8%; Fabric & Home Care 1,250 / 30,314 = 4.1%; Beauty 415 / 16,023 = 2.6%. Geography FY2026 ($bn): international 45.3 / 87.0 = 52.1%; United States 41.7 / 87.0 = 47.9%. Walmart about 16% x 87,032 = 13,925, about $13.9 billion. Top ten customers less Walmart (rounded percentages): FY2017 35 - 16 = 19; FY2020 38 - 15 = 23; FY2023 40 - 15 = 25; FY2026 43 - 16 = 27. Dividend per share 4.2589 / 4.0763 - 1 = 4.5% (FY2026); 4.0763 / 3.8286 - 1 = 6.5% (FY2025). Market exit charges after tax 1,200 + 131 = 1,331. P&G / Unilever market value 339.64 / 132.99 = 2.6 times. Restructuring charges FY2024-FY2026 659 + 1,114 + 1,230 = 3,003. Gillette write-downs 8.3 + 1.3 = 9.6 billion. Operating margin 19,748 / 87,032 = 22.7% (FY2026); 20,451 / 84,284 = 24.3% (FY2025) - segment results, geography and customer concentration. — FY2015-FY2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Procter & Gamble's Forms 10-K, results releases, earnings slides and market data; operands shown in the source line.
  4. ReportedOn net sales of $87,032 million that is roughly $13.9 billion, more than the whole of P&G's Health Care segment, which sold $12,456 million.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Note 2 segment information: net sales, earnings before tax, net earnings, margins, capital spending and depreciation by segment. — FY2026 · publ. 4 August 2026 · source ↗
  5. ReportedThe share has been steady for a decade: 16% in fiscal 2017, about 15% from fiscal 2018 to fiscal 2023, and 16% since.
    Procter & Gamble Form 10-K for fiscal 2019 - the $8.3 billion Shave Care impairment, the Merck KGaA over-the-counter acquisition, five-year financial summary, segment shares, Walmart and top-ten customers. — FY2019 · publ. August 2019 · source ↗
  6. ReportedThe share has been steady for a decade: 16% in fiscal 2017, about 15% from fiscal 2018 to fiscal 2023, and 16% since.
    Procter & Gamble Form 10-K for fiscal 2022 - segment shares of sales and earnings, Walmart share 2020-2022, top-ten customers and share repurchases. — FY2022 · publ. August 2022 · source ↗
  7. ReportedThe share has been steady for a decade: 16% in fiscal 2017, about 15% from fiscal 2018 to fiscal 2023, and 16% since.
    Procter & Gamble Form 10-K for fiscal 2025 - segment results for fiscal 2023, net sales drivers, Walmart share, top-ten customers and debt at June 2024 and 2025. — FY2025 · publ. August 2025 · source ↗
  8. ReportedP&G's organic growth was 1% in fiscal 2026, so any concession on price to its largest customer comes straight out of a thin increase.
    Procter & Gamble fourth-quarter fiscal 2026 earnings slides, Form 8-K exhibit 99.1 - organic sales and core EPS history, share results and fiscal 2027 guidance assumptions. — Q4 FY2026 · publ. 29 July 2026 · source ↗
  9. ReportedThe 10-K states the position plainly: "No other customer represents more than 10%".
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 1 business and Item 2 properties: employees, manufacturing sites, customers, channels, competition and strategy. — FY2026 · publ. 4 August 2026 · source ↗
  10. ReportedAbout 16% in fiscal 2026 is the current reading.
    Procter & Gamble Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 1 business and Item 2 properties: employees, manufacturing sites, customers, channels, competition and strategy. — FY2026 · publ. 4 August 2026 · source ↗
Sources
Generated September 26, 2026