Symbotic Shares Face Headwinds Ahead of Earnings

Shares of automation technology firm Symbotic are experiencing volatility in the lead-up to the company's quarterly report scheduled for February 4th. While the company boasts a substantial order backlog, persistent losses and recent insider selling activity are weighing on investor sentiment.

A key pillar supporting the company's valuation is its contracted backlog, which stands at approximately $22.4 billion. This figure offers significant revenue visibility for the coming years. For the ongoing first quarter of 2026, management has provided revenue guidance in the range of $610 million to $630 million. This would represent year-over-year growth of 25% to 29%. Adjusted EBITDA for the quarter is projected to be between $49 million and $53 million.

Revenue Growth Contrasted by Persistent Losses

The financial results for the fiscal year ended September 27, 2025, highlight a continuing challenge. Revenue did see substantial growth, increasing by 26% to $2.247 billion. However, the bottom line showed a net loss of $91 million, equating to a loss per share of $0.16. Although the company reported an adjusted EBITDA of $147 million, achieving GAAP profitability remains a central hurdle. The significant costs associated with scaling its AI-powered robotics platform continue to impact the income statement.

Should investors sell immediately? Or is it worth buying Symbotic?

Insider Selling Exerts Pressure on Stock Price

A wave of insider share sales in December 2025 placed considerable downward pressure on the stock. During that period, the share price declined by roughly 30%, falling from highs around $85 to approximately $60. The stock recently traded at $65.22, marking a daily decline of 3.26%. This activity suggests a cautious stance among institutional investors, who are balancing the strong top-line growth against the reduction in insider holdings.

Analyst Skepticism and Technical Resistance

Market analysts express caution. The stock's current Zacks Rank of #4 (Sell) reflects recently downwardly revised earnings expectations. Primary concerns center on execution risks and potential margin pressure as the company implements its next-generation warehouse structures. Technically, a recent recovery of about 21.5% over the past weeks is now meeting resistance near the price levels seen prior to the December sell-off. All attention is now focused on the February 4th results, which must demonstrate tangible progress in reducing GAAP losses.