Symbotic Inc. Q2 FY2026 earnings call

Rick Cohen mentioned strong execution with higher revenue growth than forecast, expanding margins, continued gap profitability, and a strengthening balance sheet. Momentum with customers builds, including first system deployment with Associated Wholesale Grocers, meeting with many customers at MODEX trade show. Goal is to layer capabilities on core system architecture for end-to-end supply chain automation. Technology progress on SIEM micro product for e-commerce and investment in new bot technologies. Izzy Martins discussed financial results, revenue growth driven by system deployments and recurring revenue, operating expenses up in support of growth initiatives, and strong backlog.

Fiscal second quarter revenue reached $676 million. Systems revenue grew 24% year over year and 8% sequentially to $634 million. Software revenue grew 93% year over year to $13 million (excluding a $1 million non-recurring adjustment). Operations services revenue was $29 million, slightly down year-over-year but up sequentially. Gross margin expanded both sequentially and year-over-year. Net income was $9 million. Adjusted EBITDA was $78 million. Backlog was $22.7 billion. Cash and cash equivalents were over $2 billion with no debt.

Expect revenue between $700 and $720 million for the third quarter of fiscal 2026 and adjusted EBITDA between $80 million and $85 million. Fourth quarter expected to have sequential growth and year-over-year growth. Backlog increase reflects final pricing adjustments and addition of one system for AWG offset by revenue recognized.

Q: Andy Kaplowitz asked about new storage structure and potential with AWG, and about the Excel site.

A: Rick and Izzy responded.

Q: Joe Giordiano asked about ramp in rest of fiscal year, CapEx, and memory.

A: Izzy responded.

Q: Nicole DeBlas asked about system completions and Atlanta installation.

A: Izzy and Rick responded.

Q: Matt Somerville asked about frozen/perishable development, APD, and international expansion.

A: Rick responded.

Q: Ken Newman asked about system initiations and investments.

A: Izzy and Rick responded.

Q: Mark Delaney asked about BreakPak and EXAL.

A: Rick and Izzy responded.

Q: Jim Ricciuti asked about gross margins and deployment in other areas.

A: Izzy and Rick responded.

Q: Guy Hardwick asked about backlog and revenue per system.

A: Izzy responded.

Q: Colin Rush asked about supply chain integration and data management.

A: Rick responded.

Q: Derek Soderberg asked about AWG project and pilot customers.

A: Rick and Izzy responded.

Q: Greg Palm asked about operating leverage.

A: Izzy responded.

Q: Robert Jameson asked about acquisitions and technologies.

A: Rick responded