If all eigenvalues of a hypersurface in Euclidean space with dimension \geq 3, are equal at a point, then such hypersurface is totally umbilical at that point: $A_p=\lambda(p) Identity$.
When all the points of a hypersurface are umbilical, by the Codazzi equation, the function $\lambda$ is (locally) constant, and then, it is an open part of either a totally geodesic hyperplane or a sphere of radius $1/\labmda$.
I agree with the answers as well. I have an additional question. For a surface immersed in Euclidean space, such that its principal curvatures differ by a constant, is there a name you know of? Of course, if $k_1=k_2$, the surface would be totally umbilical. What if $k_1-k_2= constant$? Thanks! :-) This relates to an older question of mine and I was just wondering about terminology and meanings. Equivalently what is the name of a surface with property $H^2 - K = constant$? Other than some special quadratic Weingarten surface....
For the complete classification of totally umbilical submanifolds in indefinite real space forms, you can find in my book "Pseudo-Riemannian geometry, [delta]-invariants and applications, pp. 57-62" (World Scientific, 2011).
I wish to say that on going through your conversations, I get motivated to study the Book of Prof. Chen. We have not the copy of this book in our library but will try to arrange soon.