The robotics revolution remains in its very early stages, with adoption and innovation accelerating and viewed as a potential bullish driver for the industrials sector in 2027. The discussion centers on two names: one closely tied to Walmart, the other supplying technology for underwater drones.
The first is Symbotic (SYM, NASDAQ), which designs and manufactures robots for warehouse and manufacturing automation and develops the software those systems run on. Walmart is its largest customer, accounting for more than 90% of total sales in the latest quarter. Walmart is also one of Symbotic’s largest shareholders, and Symbotic acquired and integrated Walmart’s robotics division on favorable terms, a relationship viewed as a long-term partnership.
Symbotic posted revenue of $720.84 million in the latest quarter, up 21.7% year over year, with net income of $55 million versus a loss of $21 million in the year-earlier period. The stock trades at roughly 51 times forward earnings and about 1.4 times this year’s expected sales. As of the Oct. 23 close, SYM sit near their 52-week low and are 56% below the peak.
The second is Kraken Robotics (KRKNF, OTC), a Canadian company focused on autonomous underwater technology. Its core business is not building complete robot systems but designing and manufacturing the batteries and sensor technology used in third-party underwater drones. Anduril’s Dive-LD and Dive-XL uncrewed underwater vehicles use Kraken’s SeaPower batteries and sensors; the Dive-LD is built for surveillance and mine detection, while the Dive-XL carries strike capability. The drones offer a lower-cost alternative to crewed submersibles, allowing militaries to operate in hazardous situations and to run for prolonged periods at depth while navigating their environment.
Beyond drone products, Kraken’s portfolio covers maritime monitoring and detailed seafloor mapping, serving defense applications, offshore energy projects and mining by supplying information for decisions in high-cost settings.
As of Oct. 23, KRKNF shares have fallen roughly 61% from their March high, weighed by uncertainty over the C$615 million acquisition of the Covelya group, a contraction in defense-tech valuation multiples, and an uneven, speculative demand outlook.
