New York, Feb 5, 2026, 08:54 EST — Premarket
- Symbotic shares dropped roughly 5% in premarket trading following its quarterly earnings release and second-quarter forecast.
- The warehouse-automation company posted $630 million in revenue for the quarter and expects $650 million to $670 million in the next.
- Needham bumped its price target up to $75, though investors remain cautious about execution and timing.
Symbotic Inc (SYM.O) shares dipped roughly 5% to $53.48 in premarket Thursday. The warehouse-automation firm released new quarterly results and a second-quarter forecast after U.S. markets closed Wednesday.
Symbotic’s business boils down to this: it sells large, complex systems to major retailers and distributors. The company reported a $22.3 billion contracted backlog—work that’s been signed but not yet delivered. In a Feb. 4 investor presentation, it detailed 57 systems currently being deployed and 51 operational systems spread across 11 customers. The presentation also spotlighted its Exol partnership with SoftBank, where Symbotic holds a 35% stake, tied to a roughly $11 billion, six-year contract.
The backlog has kept growth in sight, but it also means the stock reacts sharply to timing shifts. When installs slow down or projects change phases, revenue can jump between quarters quickly. The market often punishes these surprises, even if demand remains strong.
Symbotic reported first-quarter revenue of $630 million, up 29%, and swung to a $13 million net income from a $17 million loss the previous year. Adjusted EBITDA rose to $67 million, a key profit metric excluding interest, taxes, depreciation, and amortization. The company expects second-quarter revenue between $650 million and $670 million, with adjusted EBITDA forecasted at $70 million to $75 million. CEO Rick Cohen described the start to the fiscal year as “strong.” CFO Izzy Martins highlighted margin gains as the driver behind profitability “exceeding our expectations.” Gross margin improved to 21.2%, free cash flow stood at $189 million, and cash on hand reached $1.8 billion following $424 million in net proceeds from a follow-on offering. SEC
On the earnings call, Martins noted first-quarter revenue reached “the top end of our forecasted range.” Symbotic added 10 new deployments during the quarter, bringing total systems in deployment to 57. She also cautioned that customer-funded “paid development” work— which can boost revenue— “will be a bit lumpy.” The Motley Fool
Analyst chatter kicked off Thursday morning. James Ricchiuti at Needham bumped his price target for Symbotic to $75, up from $70, while keeping a Buy rating in place, reports GuruFocus.
The downside risk remains clear to traders. Symbotic’s revenue depends heavily on a handful of major clients, and project timing shifts with their capex choices, permitting, site readiness, and supply-chain hurdles. Plus, heavy stock-based compensation often weighs on sentiment when markets turn cautious.
Symbotic operates in the warehouse-automation sector alongside rivals offering roughly the same pitch: boosting throughput while cutting labor. Yet contracts stretch long, installations get complicated, and quarterly earnings often bounce around. Investors seem to favor steady margin gains and cash discipline over flashy backlog totals.
Thursday’s key moment comes at the 9:30 a.m. ET open, when we’ll see if the premarket dip holds as volume picks up. After that, investors will look for early-quarter clues on whether deployments are on track and if software and services continue to expand with more systems going live.
