Symbotic Inc.

Fiscal third quarter revenue was $721 million, up 22% year over year and 7% quarter over quarter. GAAP net income was $55 million versus a net loss of $21 million in the third quarter of fiscal 2025, and adjusted EBITDA was $95 million versus $45 million a year ago. Systems revenue was $671 million, up 20% year over year; software revenue was $13 million, up 57%; and operations services revenue was $37 million, up 49%. Gross margin expanded sequentially and year over year; non-GAAP gross margin was 25%. For the fourth quarter of fiscal 2026, management expects revenue of $700 million to $780 million and adjusted EBITDA of $100 million to $105 million. Backlog was $22.5 billion and cash and cash equivalents were $1.7 billion at quarter end.

Rick Cohen framed the quarter as proof that Symbotic is broadening its opportunity set while improving profitability. He highlighted Walmart micro-fulfillment progress, including installation of the first SymMicro system in a Walmart store and expectations that a second site would follow, plus interest in perishables and software-led value creation. His tone was confident and expansionary, with repeated emphasis on building a more software-centric, AI-enabled automation platform and using tuck-in acquisitions to extend capabilities.

Izilda Martins said the quarter beat on both revenue and profitability, with revenue near the high end of guidance, adjusted EBITDA above forecast, and net income of $55 million. She pointed to margin expansion from project execution, cost discipline, revenue mix, and operating leverage, noting operating expenses of $128 million on a GAAP basis and combined adjusted R&D and SG&A of $85 million. She also explained that the $1.7 billion cash balance was down from $2 billion mainly due to timing of cash receipts and project spending, and said fourth-quarter margins could be flatter because gross margin was expected to stabilize while SG&A rises slightly.

Analysts focused on the timing and economics of SymMicro, the next-gen storage structure, and when Walmart could convert the broader micro-fulfillment opportunity. Management said the current Walmart prototype should take about 6 months to install, a second site would follow, and a larger rollout decision would likely come after the next version proves itself; one comment suggested the 400-store trigger is not expected until early 2028. Questions also covered GreenBox commercialization, ARMS monetization, and why margins may flatten in Q4; management said GreenBox Atlanta is live, Lathrop should go live in 60 to 90 days, ARMS will be a software add-on priced on value created, and Q4 EBITDA margin could be flat because OpEx is expected to tick up while gross margin stabilizes.