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Key Takeaways Rigetti ended the first quarter with nearly $569 million in liquidity and no debt.Investments target Fab-1 expansion, refrigeration capacity and chiplet-based architecture.Rigetti plans to invest up to $100 million in the U.K. while pursuing quantum advantage. Rigetti Computing’s (RGTI - Free Report) first-quarter 2026 results highlighted that one of the company’s greatest strengths goes well beyond its quantum technology. It ended the quarter with nearly $569 million in cash, cash equivalents and available-for-sale investments, while remaining debt-free. This robust liquidity gives Rigetti the financial capacity to execute its multi-year technology roadmap without relying on frequent capital raises, a notable advantage in an industry where many emerging quantum players continue to face funding constraints.

The company intends to keep investing aggressively throughout 2026, with spending directed toward expanding Fab-1 manufacturing capabilities, increasing dilution refrigeration capacity and advancing its chiplet-based quantum architecture. While these investments may weigh on near-term profitability, they are designed to strengthen Rigetti’s technology leadership and support the development of larger, higher-performance quantum systems.

Management also emphasized that its primary objective remains long-term value creation rather than meeting short-term financial milestones. The company continues to focus on improving gate fidelity, scaling modular quantum computing systems and reaching quantum advantage over the next three years. Backed by disciplined capital allocation and a healthy balance sheet, Rigetti believes it has the resources needed to pursue these goals.

Beyond its U.S. operations, Rigetti plans to invest up to $100 million in the United Kingdom to expand its international presence while continuing to build strategic partnerships that support its technology roadmap. Although quarterly revenues are expected to fluctuate due to the timing of quantum system deliveries, the company’s strong financial foundation provides the flexibility to execute its long-term strategy and benefit from the growing commercial adoption of quantum computing.

Peers UpdatesQuantum Computing Inc. (QUBT - Free Report) or QCi announced the completion of acquiring NHanced Semiconductors, Inc. for a combination of cash and QCi stock valued at $73.1 million, subject to customary adjustments, and up to an additional $72.0 million if certain performance targets are achieved. The acquisition marks an important step in QCi’s transition from research-driven innovation and prototyping to scalable commercial production.

D-Wave Quantum (QBTS - Free Report) is expanding beyond annealing into gate-model quantum computing following its Quantum Circuits acquisition. The company targets roughly 175 physical qubits by the end of 2028, 10 logical qubits by 2030 and 100 logical qubits by 2032. However, delays in foundry capacity, chip integration or customer adoption could postpone commercialization and keep revenue growth uneven.

Rigetti’s Price Performance, Valuation and EstimatesShares of RGTI have lost 35.7% in the year-to-date period compared with the industry’s decline of 6.7%.

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From a valuation standpoint, Rigetti trades at a price-to-book ratio of 8.12, above the industry average. RGTI carries a Value Score of F.

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The Zacks Consensus Estimate for Rigetti’s 2026 earnings implies a significant 71.9% improvement from the year-ago period.

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The company currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Rigetti Computing's (RGTI 2.53%) quantum systems may one day crack problems that classical (ordinary) computers never could, like designing novel drugs or designing materials from the ground up. That day has yet to come, but the company, along with competitors like IonQ and D-Wave Quantum, is racing to create a computer powerful enough -- and, critically, reliable enough -- to do so.

Recently, the U.S. government made getting there a priority, placing Rigetti and a handful of other quantum firms on a short list of companies it's willing to back with public money. The company signed a letter of intent with the Commerce Department for up to $100 million over three years. The stock was up nearly 70% to just over $27 following the announcement, but has fallen since, now hovering around $16.60 as of July 8.

So, is now the time to jump in? Is Rigetti stock a buy below $20?

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The bull case Rigetti has the blessing of the Commerce Department That government deal is a great place to start for the bull case. Being one of a handful of quantum companies chosen is a validation of Rigetti's work so far and its potential in the eyes of the federal government. It also means Rigetti gets an infusion of cash to help it continue its efforts for years.

Rigetti has made real technical progress The basic building block of a quantum computer is a qubit, the quantum version of the 1s and 0s in a normal computer. In general, the more, the better.

But raw qubit count is only one part of the picture. Even more critical is how error-prone these qubits are, what the industry calls fidelity.

Rigetti has made real strides here. Its latest system, the Cepheus-1-108Q, has 108 qubits with a single gate fidelity rate of 99.9%. That's a big jump from the 99.5% fidelity achieved by a prior system with 84 qubits just 18 months ago.

Rigetti has a balance sheet with room to breathe In an industry very much still in research and development mode, a healthy balance sheet is of utmost importance. Rigetti is in a relatively solid position with $443.5 million in cash and short-term investments and minimal debt. With how much it's spending, that should give the company roughly three years of runway.

The bear case The government award isn't final yet The agreement that was signed was a letter of intent (LOI), meaning it is non-binding. The stock jumped on the news, but there's a non-zero chance the funding never comes through. If it does, the investment isn't free. The government gets an equity stake and dilutes current shareholders in the process.

The fidelily headlines are a bit misleading A 99.9% fidelity rate is genuinely a major jump in the right direction, but there is much further to go than the number implies. When the average investor reads that, it seems that Rigetti is right on the edge of achieving near-perfect fidelity. It's not.

It makes it much clearer if you flip it around to the error rate. A 99.9% fidelity becomes a 0.1% error rate. That means there is an error in 1 out of every 1,000 operations. For these systems to produce meaningful work, they need to be performing millions of calculations every second -- thousands of errors a second at current rates. And remember, errors compound.

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Classical computers today have error rates on the order of 1 out of every quadrillion -- a billion billion -- operations.

Because of the nature of quantum systems, they can't match the error rate of classical systems, but, thankfully, they don't need to. They do, however, need to hit something on the order of 1 in 1,000,000 to begin to be truly useful.

That's a 99.9999% fidelity rate -- about 1,000 times less error-prone than Rigetti's latest system.

Spending is an issue While the company's balance sheet gives it room to breathe for now, cash burn is increasing -- a trend that is likely to accelerate as the level of difficulty in developing the technology increases. And that's before any major ramp from manufacturing systems at scale when that time comes. There is likely to be much more need for capital raising -- and dilution -- before revenue ramps to match expenses.

The bottom line Of course, at the end of the day, all of this hinges on whether -- and when -- Rigetti can deliver real, commercially viable quantum computers to the market. If you are on board with the more optimistic timelines and you believe Rigetti will be the one to do it, then today's stock price is justifiable.

If, like me, you think things are going to take a lot longer than bulls hope, Rigetti is a pass anywhere near $20.

Key Takeaways Rigetti ended Q1 2026 with about $569M in cash and investments and no debt.Rigetti plans elevated 2026 capex to expand Fab-1 and dilution refrigeration capacity.Rigetti aims to improve gate fidelity and achieve quantum advantage in roughly three years. Rigetti Computing’s (RGTI - Free Report) first-quarter 2026 results reinforced that one of its biggest competitive advantages extends beyond its quantum technology. The company exited the quarter with approximately $569 million in cash, cash equivalents and available-for-sale investments while carrying no debt, giving it ample financial flexibility to fund its ambitious technology roadmap.

Rigetti appears well-positioned to continue investing in fabrication, higher-qubit systems and infrastructure without compromising execution when many early-stage quantum computing companies remain heavily dependent on external financing. Management reiterated that capital spending will remain elevated this year as it expands Fab-1 capabilities, adds dilution refrigeration capacity and advances its chiplet-based architecture, investments that are expected to strengthen its long-term competitive position rather than maximize near-term profitability.

More importantly, management made it clear that the company is prioritizing long-term value creation over short-term financial targets. Rigetti remains focused on improving gate fidelity, scaling its modular quantum systems and achieving quantum advantage in roughly three years, supported by disciplined capital allocation and a strong balance sheet.

The company also plans to invest up to $100 million in the United Kingdom to expand its global quantum footprint while continuing to pursue strategic partnerships that accelerate its roadmap. Although quarterly revenues will likely remain uneven given the timing of large system deployments, Rigetti's financial strength provides the runway needed to execute its technology strategy and capitalize on growing commercial opportunities as the quantum computing market matures.

Peers UpdatesQuantum Computing Inc. (QUBT - Free Report) or QCi announced the completion of acquiring NHanced Semiconductors, Inc. for a combination of cash and QCi stock valued at $73.1 million, subject to customary adjustments, and up to an additional $72.0 million if certain performance targets are achieved. The acquisition marks an important step in QCi’s transition from research-driven innovation and prototyping to scalable commercial production. By adding semiconductor and nanophotonics fabrication capabilities, advanced packaging expertise and specialized engineering talent, QCi is strengthening its operational capabilities and manufacturing readiness.

IonQ (IONQ - Free Report) recently opened a new 22,000-square-foot quantum computing R&D laboratory and semiconductor chip testing facility in Boulder, CO, to support the development of future generations of its trapped-ion quantum computing systems. The facility will enable the company to design, test and refine advanced semiconductor ion-trap chips, with plans to install its first quantum computer later this year. By expanding its presence in Colorado's growing quantum technology ecosystem and leveraging the region's deep-tech talent pool, IONQ aims to accelerate innovation, scale production capabilities and advance its roadmap toward fault-tolerant quantum computing.

Rigetti’s Price Performance, Valuation and EstimatesShares of RGTI have lost 12.3% in the year-to-date period compared with the industry’s decline of 16.3%.

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From a valuation standpoint, Rigetti trades at a price-to-book ratio of 11.07, above the industry average. RGTI carries a Value Score of F.

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The Zacks Consensus Estimate for Rigetti’s 2026 earnings implies a significant 71.9% improvement from the year-ago period.

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The company currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Rigetti appears better positioned for near-term upside after Quantinuum's IPO reset sector valuations.RGTI's 108-qubit Cepheus-1-108Q and $569M cash balance support its chiplet-based roadmap.IonQ leads commercialization with $64.7M in Q1 revenues, but its sharp rally may limit near-term gains. After a volatile start to 2026, quantum computing stocks have staged an impressive comeback. Since April 1, shares of IonQ (IONQ - Free Report) have surged 109.9%, while Rigetti Computing (RGTI - Free Report) has rallied 58.4%, both significantly outperforming the S&P 500's 14.5% gain. The recovery reflects renewed investor optimism toward the quantum computing industry as commercialization milestones accelerate and governments and enterprises increase investments in next-generation computing technologies.

The latest catalyst fueling enthusiasm is the Quantinuum's (QNT - Free Report) blockbuster public listing. The company has emerged as one of the largest pure-play quantum computing firms, and its public debut is resetting valuation expectations across the industry. Investors now have a new benchmark for assessing publicly traded quantum names, sparking fresh interest in companies with credible technology road maps, growing commercial traction and sufficient capital to scale their platforms.

With the quantum sector entering a new phase of price discovery following Quantinuum's listing, investors must determine which stock is better positioned to capitalize on the industry's next leg of growth. Let's find out.

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Rigetti's Chiplet Progress and Adoption Fuel GrowthRigetti continues to strengthen its position in superconducting quantum computing through its differentiated chiplet-based architecture and improving commercial traction. In the first quarter of 2026, the company reported revenue growth of nearly 199% year over year to $4.4 million, driven primarily by on-premises Novera QPU deliveries and related contracts.

The company recently achieved general availability of its 108-qubit Cepheus-1-108Q system, one of the largest modular quantum computers currently available. Rigetti's chiplet architecture has been validated through the successful integration of 12 interconnected chiplets, marking an important step toward scaling higher-qubit systems. Customer momentum is also improving, supported by expanding availability across Amazon Braket, Microsoft Azure Quantum and qBraid, as well as an $8.4 million order from India's C-DAC. With $569 million in cash and no debt, Rigetti remains well-funded to execute its long-term roadmap.

Risks to ConsiderHowever, risks remain considerable. Revenues are still relatively small and heavily dependent on the timing of system deliveries and government contracts. The company remains unprofitable and must continue improving fidelities while proving that its chiplet-based approach can scale to commercially relevant, fault-tolerant systems with more than 1,000 qubits. Execution risks could also intensify as competition in the quantum computing industry heats up following Quantinuum's IPO.

IonQ's Quantum Platform and Demand Drive OptimismIonQ has emerged as one of the quantum industry's early commercialization leaders. In the first quarter of 2026, the company generated a record $64.7 million in revenues, up 755% year over year. Management also raised its 2026 revenue guidance to $260-$270 million, reflecting strong demand across its quantum computing platform.

Commercial momentum remains impressive. Remaining performance obligations surged 554% year over year to $470 million, providing strong revenue visibility. About 60% of first-quarter revenues came from commercial customers, while 35% originated from international markets. The company has also presold its first chip-based 256-qubit system and expects customer commissioning to begin in the second quarter of 2027. Its proposed SkyWater Technology acquisition is likely to further strengthen manufacturing capabilities and support long-term scaling ambitions.

Risks to ConsiderHowever, risks remain significant. IonQ continues to invest heavily in manufacturing expansion and next-generation system development, which could keep profitability under pressure. The company also faces execution risks in translating its growing backlog into sustainable earnings. Additionally, the stock's massive rally has elevated valuation expectations, potentially capping near-term upside.

2026 EstimatesRGTI expects to record earnings growth of 71.9% in 2026. Revenues are expected to increase 257.3% in 2026.

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IONQ expects record earnings growth of 42.9% in 2026. Revenues are projected to surge 101.9% in 2026.

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Short-Term Price Targets Favor Rigetti Over IonQBased on short-term price targets offered by 10 analysts, the average price target of RGTI of $31 represents an increase of 45.1% from the last closing price of $21.36.

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Based on short-term price targets offered by 11 analysts, the average price target of IONQ of $69.95 represents an increase of 23.7% from the last closing price of $56.55.

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Which Stock Offers Higher Upside Potential After Quantinuum's IPO?Both companies stand to benefit from the renewed investor interest generated by Quantinuum's public debut. Quantinuum's IPO is likely to act as a valuation reset for the sector, drawing additional institutional capital toward publicly traded quantum computing companies with credible technology road maps and commercialization strategies.

However, Rigetti appears better positioned for near-term upside in a post-Quantinuum environment. Although both stocks currently carry a Zacks Rank #4 (Sell), RGTI offers substantially higher analyst-implied upside potential, a sizeable cash position with no debt, and growing momentum around its chiplet-based architecture and system deployments.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Meanwhile, IonQ remains the sector's commercial leader and arguably possesses the strongest long-term platform strategy. However, its shares have already more than doubled since April, resulting in richer valuation multiples and potentially limiting additional gains in the near term.

Investors seeking exposure to the next phase of enthusiasm following Quantinuum's IPO may find Rigetti's risk-reward profile more attractive at current levels. Long-term investors may continue to monitor IonQ's commercialization progress closely, but after its extraordinary rally, RGTI appears to offer the better upside opportunity as the quantum sector enters its next chapter.