TLDR:
- Symbotic stock rose 18.4% after announcing new contracts with Walmart Mexico
- The contracts involve deploying automation systems in two distribution centers
- This news eased concerns about Symbotic’s growth potential
- Symbotic’s Q4 guidance had previously triggered stock sell-offs
- The new contracts suggest possible outperformance of previous guidance
Symbotic, a robotics and automation company, saw its stock price jump 18.4% on Thursday following an announcement of new contracts with Walmart’s Mexico division, Walmex.
The agreements will bring Symbotic’s automation systems to two distribution centers in Mexico, signaling potential growth for the company in international markets.
The news comes as a relief to investors who had been concerned about Symbotic’s growth prospects. The company’s stock had faced pressure in recent months, dropping by about 46% year-to-date before Thursday’s surge. This decline was partly due to disappointing guidance issued in the company’s fourth-quarter report in July.

Symbotic’s relationship with Walmart is crucial, as contracts with the retail giant account for a majority of the company’s revenue. The new deals with Walmex suggest that Walmart may still be in the early stages of integrating Symbotic’s technologies across its warehouse and distribution network.
In its most recent quarterly report, Symbotic had projected sales between $455 million and $475 million for the upcoming quarter. While this forecast indicated a year-over-year growth of about 19%, it also suggested a sequential decline of approximately 5.5% from the previous quarter’s $491.9 million in sales.
The newly announced contracts with Walmex raise the possibility that Symbotic’s actual performance could exceed these earlier projections. This potential outperformance has reignited investor interest in the company’s growth story.
Analysts have mixed views on Symbotic’s prospects. While some maintain optimistic price targets and “buy” ratings, others have recently lowered their expectations. Cantor Fitzgerald reiterated an “overweight” rating with a $60 price target, while other firms like Northland Securities and KeyCorp reduced their targets to $50 and $40, respectively.
The stock’s volatility is evident in its trading history. Despite the recent uptick, Symbotic shares are still trading well below their 52-week high. The company’s market capitalization stands at approximately $16.11 billion, with a price-to-earnings ratio that reflects its growth-stage status.
Symbotic’s core business involves developing automation technologies to improve efficiency in modern warehouses. The company’s systems are designed to enhance operations at the front end of the supply chain, a critical area for retailers like Walmart who are constantly seeking to optimize their distribution networks.
Insider activity at Symbotic has been notable, with several executives selling shares in recent months. However, insiders still maintain significant ownership, controlling about 38.3% of the company’s stock.
Institutional investors have also been active in Symbotic shares, with several major financial institutions adjusting their positions. This institutional interest can be seen as a vote of confidence in the company’s long-term prospects, despite recent market volatility.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support