Highlights

  • Fiscal third quarter revenue rose 22% to $720.8 million, and net income was $55.0 million versus a $21.2 million loss.
  • Backlog was about $22.5 billion at quarter end, with Walmart and Exol agreements making up the vast majority.
  • A previously reported material weakness over the timing of cost of revenue recognition remained open as of June 27, 2026.
  • Cash and cash equivalents were $1,746.4 million, while nine-month operating cash flow reached $305.6 million.

Symbotic (NASDAQ:SYM) shares were trading near their 52-week low at USD 42.15 on October 21, 2026, up 6.20%. The warehouse automation company disclosed in a Form 10-Q filed August 5, 2026 that revenue for its fiscal third quarter rose 22%, that backlog stood at about $22.5 billion and that a material weakness in internal control over financial reporting had not yet been remediated.

Based in Wilmington, Massachusetts, Symbotic is a Delaware corporation that builds robotic systems, combining hardware with AI-powered software, to move, store and sort pallets, cases and individual items in warehouses. Its systems run at large retailers such as Walmart and wholesale distributors such as C&S Wholesale Grocers, and are being deployed for Exol, a warehouse-as-a-service joint venture in which Symbotic holds 35%. It operates as one segment, and its 52-53 week fiscal year ends on the last Saturday of September.

Revenue Up 22% With 77 Systems in Deployment

Revenue for the quarter ended June 27, 2026 was $720.8 million, compared with $592.1 million a year earlier. Systems revenue grew 20% to $671.0 million, which the company linked to 77 Systems in deployment against 46 in the same quarter of fiscal 2025. For the nine months, revenue was $2.03 billion, up 24%.

Gross profit increased to $160.9 million, a margin of 22.3% versus 18.9%, though higher tariff expenses partly offset the gain. Operating income was $32.9 million, compared with an operating loss of $25.8 million a year earlier. Research and development expense fell 12%, while selling, general and administrative expense rose 18% to $84.2 million on higher headcount. Other income of $30.6 million was mainly fair value adjustments on strategic investments, and the equity method loss was $9.6 million.

Net income was $55.0 million, of which $43.3 million belonged to noncontrolling interests. Net income attributable to common stockholders was $11.7 million, or $0.09 per diluted Class A share, against a loss of $0.04 a year earlier.

Backlog, Concentration, Controls and Legal Matters

Backlog of about $22.5 billion consists mostly of undelivered Systems under the Walmart master automation agreement and the commercial agreement with Exol. Concentration is high: one customer, which the filing does not name, accounted for 90.5% of third quarter revenue and 82.8% of receivables. Symbotic's maximum exposure to loss from Exol, including future funding commitments of $1,487.9 million, was $1,491.3 million.

The company disclosed several risk items. Its chief executive and chief financial officers concluded that disclosure controls were not effective at June 27, 2026 because of a material weakness in the design of controls over the timing of cost of revenue recognition. Management cannot say when remediation will finish. In the second quarter of fiscal 2026, the company began a replacement program, including a targeted recall, for certain System components and booked a $34.3 million liability, with no further charge in the third quarter and completion expected within a year.

A putative securities class action, Decker v. Symbotic, remains pending in Massachusetts federal court. On July 23, 2026 the court granted in part and denied in part the company's motion to dismiss, with a scheduling conference set for August 31, 2026. Related derivative actions have been consolidated. The company intends to defend vigorously and cannot estimate a possible loss.

Cash Flow, Funding and Outlook

Operating activities used $147.3 million of cash in the third quarter, and free cash flow, a non-GAAP measure, was negative $164.6 million. For the nine months, free cash flow was $242.8 million, and financing inflows included $424.3 million of net proceeds from a December 2025 sale of Class A common stock. Vendor commitments totaled $1,080.8 million, with $1,016.0 million due within a year.

The filing contains no numerical revenue or earnings guidance. Management said that cash, working capital and forecast operating cash flow should cover foreseeable needs for at least 12 months, including capital calls from Exol, and that it may be unable to raise additional funds on acceptable terms if needed. The filing reported no subsequent events requiring disclosure.