Symbotic (NASDAQ:SYM) Posts Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Symbotic (NASDAQ:SYM) posted its earnings results on Wednesday. The company reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.13 by ($0.04), FiscalAI reports. The company had revenue of $720.84 million during the quarter, compared to analysts’ expectations of $715.03 million. Symbotic had a negative net margin of 0.20% and a negative return on equity of 0.68%. Symbotic’s revenue for the quarter was up 21.7% on a year-over-year basis. During the same quarter last year, the firm earned ($0.05) EPS.

Here are the key takeaways from Symbotic’s conference call:

• Strong third-quarter performance: Revenue rose 22% year over year to $721 million, GAAP net income reached $55 million, and adjusted EBITDA more than doubled to $95 million. Fourth-quarter guidance calls for revenue of $760 million–$780 million and adjusted EBITDA of $100 million–$105 million.
• Symbotic started 11 new deployments during the quarter, bringing total deployments to 77 and operational systems to 56. The company’s backlog remained substantial at $22.5 billion, while software and operations-services revenue grew 57% and 49%, respectively.
• Product expansion is broadening the opportunity set, with BreakPack deployed at half of Walmart’s regional distribution centers, the first next-generation SymMicro system being installed at a Walmart store, and growing interest in perishables, dock automation, and warehouse-optimization software.
• The Walmart SymMicro opportunity appears farther out than some investors may have expected: management said the first new-version prototype will take roughly six months, with the 400-store order likely not occurring until early 2028. The next-generation storage structure’s major revenue and margin impact is expected mainly in the second half of fiscal 2027.
• Management expects fourth-quarter EBITDA margins to be broadly stable as gross margins normalize from the unusually strong third quarter and operating expenses rise modestly. Third-quarter cash declined to $1.7 billion due to project-related timing, although management expects positive fourth-quarter free cash flow.

Symbotic Trading Down 14.9%

Shares of NASDAQ SYM traded down $6.92 during midday trading on Thursday, reaching $39.60. The company had a trading volume of 5,047,004 shares, compared to its average volume of 1,878,046. Symbotic has a 1 year low of $38.19 and a 1 year high of $87.88. The business’s 50-day simple moving average is $43.02 and its 200 day simple moving average is $50.90. The stock has a market cap of $23.87 billion, a P/E ratio of -791.84, a P/E/G ratio of 7.00 and a beta of 1.94.

Wall Street Analyst Weigh In

SYM has been the topic of a number of recent analyst reports. DA Davidson restated a “buy” rating and issued a $70.00 price target on shares of Symbotic in a report on Monday, May 11th. Weiss Ratings cut shares of Symbotic from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Monday, May 11th. The Goldman Sachs Group lowered their target price on shares of Symbotic from $54.00 to $45.00 and set a “sell” rating for the company in a research note on Tuesday, May 26th. Robert W. Baird set a $51.00 price target on Symbotic in a research report on Thursday. Finally, Zacks Research lowered Symbotic from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 7th. Seven equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and an average price target of $65.92.

Insider Transactions at Symbotic

In other news, insider William M. Boyd III sold 9,194 shares of the stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $41.04, for a total value of $377,321.76. Following the transaction, the insider directly owned 57,112 shares of the company’s stock, valued at approximately $2,343,876.48. This represents a 13.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Todd Krasnow sold 25,422 shares of Symbotic stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $52.45, for a total value of $1,333,383.90. Following the sale, the director directly owned 182,036 shares of the company’s stock, valued at $9,547,788.20. This trade represents a 12.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 143,433 shares of company stock worth $6,627,326 over the last 90 days. Insiders own 8.16% of the company’s stock.

Hedge Funds Weigh In On Symbotic

Institutional investors have recently bought and sold shares of the business. Royal Bank of Canada boosted its holdings in Symbotic by 28.8% during the first quarter. Royal Bank of Canada now owns 84,856 shares of the company’s stock worth $1,714,000 after buying an additional 18,967 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Symbotic by 15.0% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 84,899 shares of the company’s stock worth $1,716,000 after acquiring an additional 11,098 shares during the period. Russell Investments Group Ltd. purchased a new stake in shares of Symbotic during the 2nd quarter worth about $804,000. Invesco Ltd. grew its position in shares of Symbotic by 33.2% during the 2nd quarter. Invesco Ltd. now owns 304,207 shares of the company’s stock valued at $11,818,000 after acquiring an additional 75,828 shares during the period. Finally, Cresset Asset Management LLC acquired a new stake in shares of Symbotic during the 2nd quarter valued at about $267,000.

Key Stories Impacting Symbotic

Here are the key news stories impacting Symbotic this week:

• Positive Sentiment: Fiscal Q3 revenue increased 21.7% year over year to approximately $721 million, exceeding the roughly $715 million analyst consensus. The company also reported net income of $55 million, compared with a $21 million loss in the prior-year quarter, while adjusted EBITDA more than doubled. Symbotic Q3 Earnings Miss Estimates, Revenues Increase Y/Y
• Positive Sentiment: Management guided for fiscal Q4 revenue of $760 million to $780 million, broadly in line with the $770.7 million consensus, suggesting continued demand for its warehouse-automation systems.
• Positive Sentiment: The earnings call highlighted expanding margins, steady fourth-quarter growth and a broader product portfolio, with management pointing to potentially significant growth inflections in fiscal 2027 and early 2028. SYM Q3 Earnings Call Puts Margin Gains and Expansion in Focus
• Positive Sentiment: Needham reaffirmed its “buy” rating and maintained a $75 price target, implying substantial upside from recent trading levels.
• Neutral Sentiment: Former Bain Capital co-chair Steve Pagliuca joined Symbotic’s board, potentially adding strategic and financial expertise as the company expands its AI-enabled robotics business. Symbotic Reports Third Quarter Fiscal Year 2026 Results
• Negative Sentiment: Q3 EPS was $0.09, missing consensus estimates of approximately $0.12-$0.13. The earnings shortfall raises concerns about near-term margins and profitability despite the revenue beat and year-over-year improvement.
• Negative Sentiment: CFO Izilda Martins sold 27,463 shares to cover tax obligations related to vested equity awards, while directors Todd Krasnow and Charles Kane each sold 2,000 shares under pre-arranged Rule 10b5-1 plans. The transactions appear scheduled or administrative, but may modestly weigh on sentiment.

About Symbotic

Symbotic Inc (NASDAQ: SYM) is a provider of advanced warehouse automation and robotics systems designed to improve throughput, space utilization and labor productivity in distribution centers and fulfillment operations. The company develops integrated hardware and software solutions that automate the storage, retrieval, sorting and palletizing of goods, positioning itself as a systems integrator for material handling challenges faced by large-scale retailers, wholesalers and third-party logistics providers.

Products and services typically include autonomous robotic vehicles and shuttle systems, automated storage-and-retrieval equipment, robotic picking and palletizing cells, conveyors and sortation, together with control and management software that coordinates fleet operations and inventory flow.