Symbotic targets 25–29% revenue growth for Q1 2026 while advancing into healthcare and next-gen automation
Nov. 25, 2025 5:24 AM ET
AI-Generated Earnings Calls Insights
Earnings Call Insights: Symbotic Inc. (SYM) Q4 2025
Management View- Richard Cohen, Chairman of the Board, President & CEO, highlighted a 26% year-over-year revenue increase for the full year, significant margin expansion, and free cash flow generation, stating cash on hand now exceeds $1.2 billion. Cohen emphasized expanding and upgrading the product portfolio with micro fulfillment for e-commerce and a proprietary next-generation storage design, noting, "Customers are already taking advantage of this breakthrough in installation efficiency. Notably, our largest customers opted to utilize our next-gen storage to combine what previously took 2 separate deployments or phases into one single phase for new sites."
- Cohen announced the addition of Medline as a new customer, marking the company's first entry into the healthcare vertical, which he described as "one of the largest potential new verticals available to us."
- Izilda Martins, Chief Financial Officer, reported, "Fiscal fourth quarter revenue grew 10% year-over-year to $618 million, exceeding our expectations." Martins noted a net loss of $19 million due to higher stock-based compensation and restructuring expenses, compared to net income of $16 million in the same quarter last year. She added, "Adjusted EBITDA in the fiscal fourth quarter of $49 million was at the high end of our forecast."
- Martins stated the backlog stands at $22.5 billion, up from $22.4 billion last quarter, due to project pricing and the addition of Medline.
Outlook- Martins provided guidance for Q1 2026, stating, "we expect revenue between $610 million to $630 million, representing year-over-year growth between 25% and 29% and adjusted EBITDA between $49 million and $53 million."
- She reiterated previous commentary that the introduction of next-gen storage would realign deployment schedules, causing less pronounced sequential revenue growth in the first half of fiscal 2026, but emphasized the new technology is expected to contribute to higher margins over time.
Financial Results- The company reported revenue for the fiscal fourth quarter at $618 million, a 10% year-over-year increase.
- Net loss for the quarter was $19 million, attributed to higher stock-based compensation and restructuring expenses.
- Adjusted EBITDA reached $49 million, while backlog increased to $22.5 billion.
- Software revenue grew 57% year-over-year to $9.3 million, and operations services revenue grew 21% to $26.9 million.
- Cash and cash equivalents ended the quarter at $1.2 billion, up from $778 million in the previous quarter.
Q&A- Nicole DeBlase, Deutsche Bank: Questioned the scale of the Medline relationship and healthcare opportunity. Cohen responded that "we worked on [Medline] for about a year," highlighting the system's accuracy and sequencing capabilities. He noted, "We've added about 5 or 6 new salespeople in the past 6 months."
- DeBlase asked about next-gen system ramp timing. Martins confirmed, "You'll call it see a less pronounced increase in revenue in, call it, the fourth, the first and the second, and then you'll see more of an increase towards the tail end."
- Joseph Giordano, TD Cowen: Inquired about Medline's commitment and technology scope. Cohen clarified, "it's one site. It's a proof-of-concept... we have -- we're starting out with the first original product."
- Giordano sought clarity on system count metrics post-next-gen. Martins explained, "the size of the system is going to be slightly larger."
- Andrew Kaplowitz, Citigroup: Asked about system gross margin trajectory. Martins said, "we feel really, really bullish about our system margins, not only where they are, but where we're headed."
- Mark Delaney, Goldman Sachs: Queried GreenBox customer pipeline. Cohen said, "Atlanta will come alive. We have a lot of interest in Atlanta, no customers to announce yet."
- Delaney also asked about GreenBox funding. Cohen replied, "our agreement with SoftBank is Iron Cloud. They're there to provide the funding."
Sentiment Analysis- Analysts frequently pressed for details on healthcare expansion, timing of next-gen system deployments, and margin trajectory, signaling a slightly positive but cautious tone.
- Management maintained a confident and optimistic stance, using phrases like "we feel really, really bullish" and "we are in a better place than ever to bring our new customers covering multiple verticals."
- Compared to the previous quarter, analyst sentiment remained focused on growth and execution, while management's confidence appeared to increase, especially regarding product innovation and margin prospects.
Quarter-over-Quarter Comparison- Q4 2025 guidance language reinforced expectations of less sequential revenue growth in the first half of 2026 due to next-gen storage deployment, consistent with Q3 messaging.
- The company’s entry into healthcare with Medline and rapid expansion of the sales team marks a strategic shift compared to the previous quarter.
- Backlog grew from $22.4 billion to $22.5 billion, and the number of operational systems rose from 42 to 48.
- Management tone in Q4 was more assertive about margin expansion and product differentiation, while analysts continued to focus on deployment timing and backlog utilization.
Risks and Concerns- Martins acknowledged the impact of higher stock-based compensation and restructuring expenses on net loss.
- Management noted that next-gen storage deployment could cause "less pronounced sequential growth" in the near term, potentially affecting revenue phasing.
- Questions about backlog realization, margin sustainability, and GreenBox customer signings reflected ongoing analyst vigilance.
Final Takeaway
Symbotic closed fiscal 2025 with double-digit revenue growth, significant margin gains, and a robust cash position, underpinned by accelerated deployment efficiencies and a broadened product portfolio. The company’s entry into healthcare with Medline and ongoing advancements in next-generation automation technology position Symbotic to target new verticals and deliver higher margins in fiscal 2026, with guidance pointing to continued strong year-over-year revenue growth and a focus on innovation-driven value creation.
Read the full Earnings Call Transcript |
