Symbotic Inc. (SYM), a leader in AI-enabled robotics technology for supply chains, saw its stock plummet 16.63% in after-hours trading on Wednesday following the release of its fiscal third-quarter results. Despite reporting better-than-expected revenue, the company's disappointing fourth-quarter guidance and warnings of potential short-term revenue impacts led to a significant sell-off.

For the third quarter ended June 28, 2025, Symbotic reported revenue of $592.1 million, surpassing analysts' expectations of $533.2 million and marking a 26% year-over-year increase. However, the company's net loss widened to $32 million, compared to $27 million in the same quarter last year. Adjusted EBITDA for the quarter improved to $45 million, up from $3 million in the prior year.

The stock's sharp decline can be attributed to three main factors: 1. Lower-than-expected Q4 guidance: Symbotic forecast fourth-quarter revenue between $590 million and $610 million, falling short of the $636 million analysts were expecting. 2. Potential short-term revenue impact: The company unveiled a next-generation storage structure, which it expects to temporarily affect revenue due to schedule shifts. While Symbotic maintains that this new structure will contribute to long-term value creation, investors seem wary of the near-term disruption. 3. Widening net loss: Despite strong revenue growth, the company's net loss increased year-over-year, raising concerns about profitability.

Carol Hibbard, Symbotic's Chief Financial Officer, addressed the outlook, stating, "Looking ahead, with the launch of a proprietary new storage structure, we expect a temporary short-term impact on revenue based on schedules shifting to accommodate. Importantly, the new structure does not affect our backlog and supports our long-term value creation."

As Symbotic continues to innovate in the supply chain sector, investors will be closely watching how the company balances short-term challenges with its long-term growth strategy. The market's reaction highlights the importance of meeting or exceeding guidance in the highly competitive and rapidly evolving field of warehouse automation.