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Buy, Sell or Hold SYM Stock? Key Tips Ahead of Q1 Earnings Release

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Key Takeaways

  • SYM is set to report fiscal Q1 results on Feb. 4, with revenues seen at $622.31M, up 27.9% year over year.
  • Symbotic expects Q1 revenues of $610-$630M, with backlog conversion a key driver of 25-29% growth.
  • SYM's shares are down over 33% in 3 months, while costs, valuation and Walmart reliance weigh on sentiment.

Symbotic Inc. (SYM - Free Report) is set to report first-quarter fiscal 2026 (ended Dec. 31, 2025) results on Feb. 04, after market close.

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $622.31 million, indicating 27.9% year-over-year growth. The consensus estimate for earnings is pinned at 8 cents per share, remaining stable over the past 60 days and indicating a 366.7% increase from the year-ago quarter’s actual.

Zacks Investment ResearchImage Source: Zacks Investment Research

SYM’s earnings surprise history is not impressive. In the four trailing quarters, its earnings surpassed the Zacks Consensus Estimate twice and missed in the other two. The average beat is 69.3%.

Symbotic Inc. Price and EPS Surprise

Symbotic Inc. Price and EPS Surprise

Symbotic Inc. price-eps-surprise | Symbotic Inc. Quote

Q1 Earnings Whispers for SYM Stock

Our proven model does not predict an earnings beat for SYM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

SYM has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping SYM’s Q1 Results

In the fourth quarter of fiscal 2025, Symbotic reported a backlog of $22.5 billion. For the first quarter of fiscal 2026, Symbotic projects revenues in the range of $610-$630 million, indicating year-over-year growth in the 25-29% band and adjusted EBITDA between $49 million and $53 million. We anticipate SYM’s top-line performance in the fiscal first quarter is likely to have been driven by the conversion of this significant backlog.

High costs, however, are likely to have hurt bottom-line performance. Overall operating costs are likely to have been escalated due to elevated research and development costs and selling, general, and administrative expenses. The company has been investing heavily to maintain a technological edge and scale its operations, in turn pushing the costs up.  

SYM’s Price Performance & Valuation

SYM’s shares have declined more than 33% over the past three months, underperforming its industry. The company has also performed worse than fellow industry participants, Coherent Corp. (COHR - Free Report) and MediaAlpha (MAX - Free Report) .

3-Month Price Comparison

Zacks Investment ResearchImage Source: Zacks Investment Research

Symbotic is currently considered relatively overvalued, trading at a very high forward 12-month price-to-sales ratio. The figure is much higher than the industry average. It is also higher than Coherent and MediaAlpha. Symbotic has a Value Score of F, while Coherent and MediaAlpha have a Value Score of D and A, respectively.

SYM’s P/S F12M vs. Industry, COHR & MAX

Zacks Investment ResearchImage Source: Zacks Investment Research

How to Play Symbotic Pre-Q1 Earnings?

SYM’s recent unimpressive price performance is a key deterrent for investors. The company’s valuation is also anything but tempting.

SYM’s overdependence on Walmart (WMT - Free Report) also raises concerns. The partnership with Walmart, SYM’s largest customer, accounts for a significant portion of its revenues. In January 2025, Symbotic completed the acquisition of Walmart’s advanced systems and robotics business. High costs are also likely to have pressured margins.

With the company facing certain risks, as highlighted above, betting on the stock now ahead of the fiscal first results might mean overpaying. Despite the backlog-related optimism, SYM looks like a stock to avoid rather than chase.


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