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BERKELEY, Calif., Sept. 08, 2026 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) (“Rigetti” or the “Company”), a pioneer in full-stack quantum-classical computing, today announced that its wholly owned subsidiary, Rigetti & Co, LLC, has signed a definitive agreement with the U.S. Department of Commerce (the “Department”) for an award of $100 million in funding to accelerate superconducting quantum computing R&D.

The funding is allocated under the CHIPS Research and Development Office Broad Agency Announcement pursuant to the CHIPS Act.

Under this definitive agreement, Rigetti will pursue three R&D projects that aim to address major technical bottlenecks in scaling superconducting quantum computing and will accelerate the Company’s roadmap towards utility-scale quantum computing:

Compressing readout electronics into an integrated, miniaturized packageExpanding cryogenic capacity by orders of magnitude using a new cryostat architectureDeveloping the fabrication capabilities for high-connectivity chip architectures
Quantum computing has tremendous promise to dramatically transform critical areas including cryptography, chemistry, materials science, mathematical optimization, and AI/machine learning. Governments worldwide are investing in this emerging technology given the national security and economic implications of quantum advantage.

“We are proud to be selected by the U.S. government to accelerate R&D and progress against our roadmap to deliver commercially viable quantum computing capabilities,” says Dr. Subodh Kulkarni, Rigetti CEO. “Solving crucial challenges in scaling gives us the opportunity to transform the industry by putting large-scale quantum computers in the hands of America’s quantum computing researchers faster. Shortening the time to build quantum systems at scale and reducing their cost will also allow for broader adoption, which will strengthen our domestic quantum computing ecosystem.”

The Department will receive a minority, non-controlling equity stake in Rigetti as a condition for receiving the funds to enhance the return for the U.S. taxpayer.

About Rigetti
Rigetti is a pioneer in full-stack quantum computing. Rigetti quantum computers are based on superconducting qubits, which are widely believed to be the leading qubit modality given their maturity, clear path to scaling, and fast gate speeds. Rigetti quantum computing systems achieve gate speeds of 50-70 nanoseconds, which is about 10,000 times faster than trapped-ion systems and 100 times faster than neutral-atom systems.

Rigetti sells on-premises 9-qubit to 108-qubit quantum computing systems, which support national laboratories and quantum computing centers. Rigetti’s Cepheus 36-qubit to 108-qubit systems are based on the Company’s proprietary chiplet-based technology and include the Company’s control electronics. Rigetti’s 9-qubit Novera QPU supports a broader R&D community with a high-performance, on-premises QPU designed to plug into a customer’s existing cryogenic and control systems.

The Company operates quantum computers over the cloud through its Rigetti Quantum Cloud Services (QCS) platform, enabling global enterprise, government, and research clients to pursue R&D. The Company’s proprietary quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing.

Rigetti developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. Leveraging this proprietary technology, Rigetti deployed the industry’s largest multi-chip quantum computer in 2026 with Cepheus-1-108Q, based on twelve 9-qubit chiplets tiled together. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at https://www.rigetti.com/.

Rigetti Media Contact
[email protected]

Cautionary Language and Forward-Looking Statements

Certain statements in this communication may be considered “forward-looking statements” within the meaning of the federal securities laws, including with respect to the Company’s expectations regarding its future success and performance including expectations with respect to its R&D; achieving the aim of the three R&D projects being pursued under the definitive agreement; the promise quantum computers have to dramatically transform critical areas including cryptography, chemistry, materials science, mathematical optimization, and AI/machine learning; the timeline for building quantum systems at scale and reducing their costs; and the Company’s ability to receive funding amounts as contemplated by the definitive agreement, including the timeline for such funding. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s issuance of securities to the Department pursuant to the definitive agreement (including dilution to existing stockholders); the Company’s ability to achieve milestones, technological advancements, including with respect to its technology roadmap; Company’s ability to deliver products to customers in time or at all, including actions by customers, such as controls over their facilities and cancelling orders; the ability of the Company to obtain government contracts successfully and in a timely manner and the availability of government funding; the potential of quantum computing; the success of the Company’s partnerships and collaborations; the Company’s ability to accelerate its development of multiple generations of quantum processors; the outcome of any legal proceedings that may be instituted against the Company or others; the ability to maintain relationships with customers and suppliers and attract and retain management and key employees; costs related to operating as a public company; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the Company’s estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives and expansion plans; the expected use of proceeds from the Company’s past and future financings or other capital; the sufficiency of the Company’s cash resources; unfavorable conditions in the Company’s industry, the global economy or global supply chain, including rising inflation and interest rates, deteriorating international trade relations, political turmoil, natural catastrophes, military conflicts, and terrorist attacks; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 and other documents filed by the Company from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.

While quantum computing doesn't yet have widespread practical applications, the technologies involved with it are improving. Artificial intelligence (AI) is widely believed to help accelerate quantum computing's applications, providing even more fuel to this tech fire.

The result is that many pure-play quantum computing stocks, including Rigetti Computing (RGTI +0.13%), have seen their share prices surge over the past three years, with Rigetti's rising 718%.

So, where will the company be in three more years, and can it replicate its past share price success? While I think Rigetti will likely expand its quantum computing sales and gain more customers, recreating its past returns will be very difficult. Here's why.

Image source: Getty Images.

Where Rigetti could be in three years While Rigetti's revenue is increasing and it's gaining some commercial customers, the company still needs to achieve more technological advancements before it sees meaningful sales. CEO Subodh Kulkarni said recently that "commercial revenue remains early" and that, "We remain focused on a clear sequence designed to position Rigetti to reach quantum advantage in roughly three years."

That's an important timeline for Rigetti because commercial sales will likely remain limited before then, and it helps put the company's current revenue into perspective. Sales rose by 185% in the second quarter, but that impressive jump still resulted in just over $5.1 million in revenue.

That's hardly an impressive figure, and it shows why Rigetti's management has tried to temper expectations.

But Rigetti is making progress with its quantum computing technologies, and in three years, it will likely have more customers and contracts than it does now. For example, the company said it expanded its collaboration with Hewlett Packard and the Pittsburgh Supercomputing Center to develop a hybrid quantum-classical supercomputer.

Rigetti also recently signed a letter of intent with the U.S. Department of Commerce for up to $100 million in funding over the next three years.

What's more, Rigetti has no debt and $541 million in cash and cash equivalents to keep investing in advancing its quantum computing technology.

Based on its current deals, rising sales, and the company's own estimates that more commercial sales are likely over the next three years, Rigetti appears to be on the right path.

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Rigetti stock likely can't replicate past three-year success While Rigetti's shares have soared more than 700% over the past three years, it's highly doubtful it can sustain that momentum.

Not only is it extremely rare for stocks to continue rising at such an explosive rate, but much of the investing momentum that helped drive Rigetti's shares higher has shifted to AI stocks.

Investors have realized that they can achieve very impressive returns on artificial intelligence stocks while enjoying the stability of owning a profitable company. Rigetti and its peers can't compete with that, and many investors have shifted from riskier quantum computing stocks to AI.

And with the AI boom still well underway -- and global AI infrastructure spending estimated to surpass $1 trillion next year -- it's likely that AI companies will continue to attract more investor attention as they reap the financial rewards.

Investors are hopeful that quantum stocks could be the next thing to soar after AI stocks.

*Stock prices used were the afternoon prices of Sept. 2, 2026. The video was published on Sept. 4, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Rigetti Computing (RGTI +2.05%) is gaining strategic validation from government support and paying hardware customers, but the shareholder equation remains unsettled. The upside could grow substantially if those early signals become repeatable demand, provided capital requirements and dilution do not absorb too much of the value created.

Stock prices used were the market prices of Aug. 24, 2026. The video was published on Sept. 2, 2026.

Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.

Key Takeaways IonQ's Q2 revenue surged 287% to $80.1 million, marking its fifth straight record quarter.Rigetti's revenues rose 185% to $5.1 million as it advanced Cepheus-1 and its 1,000-qubit roadmap.IonQ raised 2026 revenue guidance to $280-$290 million while expanding its full-stack strategy. Quantum computing remains one of Wall Street's highest-risk, highest-reward themes, and the latest earnings season gave investors a fresh reason to compare two of the sector's biggest names. While Rigetti Computing (RGTI - Free Report) and IonQ (IONQ - Free Report) are pursuing different technology road maps, both used their second-quarter 2026 updates to showcase accelerating commercial traction and ambitious scaling plans.

IONQ delivered the bigger financial headline. Revenues surged 287% year over year to $80.1 million, marking its fifth straight record quarter, while management raised full-year revenue guidance to $280-$290 million. The company also strengthened its vertically integrated strategy through the SkyWater acquisition and highlighted progress toward semiconductor-based 256-qubit systems.

Rigetti's numbers were smaller, with revenues climbing 185% to $5.1 million, but its quarter centered on execution. The company advanced its 108-qubit Cepheus-1 platform, reiterated its chiplet-based roadmap toward 1,000 qubits and secured a Department of Commerce letter of intent for up to $100 million in potential CHIPS Act funding.

Investors have rewarded the stronger commercial momentum. Over the past month, IONQ and RGTI’s shares have gained 14.3% and 4.6%, respectively, reflecting greater confidence in IonQ's near-term execution. Still, Rigetti's government backing, modular architecture and hybrid computing partnerships suggest this race is about more than today's revenue figures.

Image Source: Zacks Investment Research

Let's get into more detail.

Rigetti's Growth CatalystsRigetti's second quarter reinforced its execution-focused investment case as revenue rose 185% year over year to $5.1 million, driven by on-premises Novera QPU sales, while gross margin expanded to 43% from 31% a year ago. The company also advanced its 108-qubit Cepheus-1 platform, reaffirmed its chiplet-based roadmap toward 1,000 qubits, secured a U.S. Department of Commerce letter of intent for up to $100 million in potential CHIPS Act funding and maintained a strong balance sheet with $541.3 million in cash and investments and no debt.

What's Holding Rigetti BackRigetti's biggest challenge remains translating technical progress into sustained commercial scale. Despite strong revenue growth, quarterly sales remain modest at $5.1 million, while operating expenses increased to $30.3 million as the company continued investing heavily in R&D, fabrication, refrigeration infrastructure and chip development. The company also needs to deliver meaningful improvements in Cepheus-1's gate fidelity and coherence times while executing on its ambitious 1,000-qubit roadmap, with the proposed CHIPS Act funding still awaiting a definitive agreement.

IonQ's Growth DriversIonQ strengthened its leadership position in the second quarter as revenue surged 287% year over year to $80.1 million, while organic revenue climbed 132%. The company continued expanding its commercial footprint, with 60% of revenues coming from commercial customers, 50% from international markets and 25% from multiproduct sales, while remaining performance obligations jumped to $485 million. IonQ also raised its 2026 revenue guidance to $280-$290 million and reinforced its full-stack strategy through the SkyWater acquisition and growing exposure across quantum computing, networking, security and defense.

What Could Slow IonQ's MomentumIonQ's rapid expansion continues to come with elevated costs and execution demands. The company posted an adjusted EBITDA loss of $120.3 million during the quarter, while SkyWater-related investments increased near-term spending as it accelerated product development and supply chain integration. Although the $1.8 billion SkyWater acquisition strengthens IonQ's long-term manufacturing strategy, it also raises the complexity of integrating operations while delivering on an ambitious roadmap spanning semiconductor-based quantum hardware, networking and security solutions.

2026 Estimates: RGTI Vs. IONQFor the full year, the Zacks Consensus Estimate for RGTI’s bottom line is pegged at a loss of 19 cents per share, implying a 70.3% improvement over the 2025 reported figure.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for IONQ’S 2026 bottom line is pegged at a loss of $1.19 per share, implying 34.6% growth over the 2025 reported loss.

Image Source: Zacks Investment Research

Bullish Price Target for RGTI over IONQBased on short-term price targets offered by 12 analysts, the average price target for IonQ represents an increase of 55.1% from the last closing price of $44.86.

Image Source: Zacks Investment Research

Based on short-term price targets offered by 11 analysts, the average price target for RGTI represents an increase of 64.99% from the last closing price of $17.91.

Image Source: Zacks Investment Research

Final Take: RGTI or IONQ?IonQ appears to have won the second-quarter earnings battle with far stronger revenue growth, higher commercial traction and a raised 2026 outlook, while Rigetti's update leaned more on technical milestones and long-term execution. However, neither stock currently carries a favorable Zacks rating. IonQ carries a Zacks Rank #4 (Sell), while Rigetti carries a Zacks Rank #5 (Strong Sell), suggesting weaker near-term expectations for both. Given IonQ's stronger operating momentum but elevated spending and integration risks, and Rigetti's earlier-stage commercial profile, investors may prefer to stay on the sidelines until fundamentals improve and their Zacks ratings turn more favorable.

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

On August 28, 2026, Rigetti Computing Inc (RGTI) shares fell 5.2% to $15.59, continuing a downward trend that has seen the stock decline 29.6% year-to-date. The

Reddit has reached profitability with a 24.1% net margin and strong revenue growth. Rigetti Computing is a high-risk pioneer in quantum hardware with heavy reliance on government funding.

Bullish option flow detected in Rigetti Computing with 40,947 calls trading, 2x expected, and implied vol increasing almost 7 points to 79.76%. Aug-26 17 calls and Dec-26 27 calls are the most active options, with total volume in those strikes near 10,600 contracts. The Put/Call Ratio is 0.34. Earnings are expected on November 10th.

Key Takeaways Rigetti's Q2 revenue rose 185.3% to $5.1M as Novera system and component sales accelerated.Gross margin reached 42.6%, but operating loss widened to $28.1M as R&D and SG&A costs climbed.The $8.4M C-DAC 108-qubit order is expected to be recognized in Q4 after installation and acceptance testing. Rigetti Computing, Inc. (RGTI - Free Report) delivered a top-line beat in the second quarter of 2026 as on-premises quantum hardware sales accelerated. At the same time, higher research and operating costs pushed losses further into the red.

The key question is whether that hardware traction can outpace the spending needed to improve fidelity, scale systems and support commercialization. Gross margin improved, but the operating loss widened, leaving the next large system delivery as an important test.

RGTI's Q2 Revenue Beat Shows Hardware DemandSecond-quarter revenues reached $5.1 million, up 185.3% from $1.8 million a year earlier and 4.7% above the Zacks Consensus Estimate. The increase came mainly from higher sales of 9-qubit Novera quantum computing systems and related products.

Sales of quantum computers and quantum components contributed about $4.1 million of quarterly revenues. The first two 9-qubit systems delivered in 2026 went to commercial organizations, making on-premises hardware a larger part of Rigetti's revenue mix.

Image Source: Zacks Investment Research

Rigetti's Cost Growth Dulls the Revenue SurgeGross profit rose 286.6% year over year to $2.2 million as gross margin expanded about 1,120 basis points to 42.6%. The mix benefited from Novera system sales, which carry a higher gross-margin profile than collaborative research and professional services.

The cost structure still dwarfed the revenue base. Research and development expenses increased 53.3% to $20.7 million, selling, general and administrative expenses rose 37.5% to $9.5 million and total operating expenses climbed 47.9% to $30.3 million. Operating loss widened to $28.1 million from $19.9 million.

RGTI's Customer Mix Keeps Results LumpyCustomer concentration remained high in the quarter. Rigetti's largest customer represented 64% of revenues and another accounted for 16%. Management expects quarterly and annual revenues to fluctuate with contract mix, pricing, milestones and delivery schedules while development contracts and on-premises system sales remain central to the model.

That concentration sits in a competitive market. International Business Machines Corporation (IBM - Free Report) said in June that it plans to invest more than $10 billion in quantum computing over five years. Alphabet Inc. (GOOGL - Free Report) , through Google Quantum AI, continues to develop superconducting systems and expanded its research into neutral-atom computing in March. Until practical workloads and repeat usage broaden, Rigetti's reported growth can remain volatile.

Image Source: Zacks Investment Research

Rigetti's C-DAC Order Shapes the Next Revenue TestRigetti's $8.4 million order from India's Centre for Development of Advanced Computing is for an on-premises 108-qubit system. The company expects to recognize the associated revenues in the fourth quarter of 2026 after installation and performance acceptance testing.

Completion would mark a larger system-sale event than the 9-qubit Novera deliveries that supported second-quarter growth. It would also provide another measure of whether customer interest can translate into sizable hardware revenues as Rigetti expands beyond research contracts and cloud access.

RGTI's Scores Temper the Q2 Revenue OptimismThe second quarter strengthened the evidence for hardware demand, but it did not establish operating leverage. Revenue growth, gross-margin expansion and the planned C-DAC delivery are constructive, yet the current expense base and concentrated customer mix keep execution risk elevated.

RGTI carries a Zacks Rank #5 (Strong Sell), with a Value Score of F, a Growth Score of F, a Momentum Score of D and a VGM Score of F. The Zacks Rank points to an unfavorable near-term earnings-estimate revision backdrop. The Style Scores also provide little support across value, growth and momentum factors, keeping the focus on whether future sales can broaden and costs can scale more favorably.

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

BERKELEY, Calif., Aug. 19, 2026 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) ("Rigetti"), a pioneer in full-stack quantum computing, today announced a new operating structure designed to scale deployment of on-premises quantum systems, strengthen end-to-end operational execution, and further focus its engineering resources on quantum processor development.

Rigetti is establishing a dedicated Systems Delivery organization and creating the role of Chief Operating Officer to lead manufacturing operations, systems delivery, commercial functions, and customer-facing engineering. Quantum processor architecture, chip development, and hardware engineering will be consolidated under the Chief Technology Officer.

The Company has seen increased demand for customer deployments of on-premises systems, ranging from 9-qubit Novera systems to large-scale 108-qubit Cepheus-class systems. Historically, installation and customer support activities have been supported within the engineering organization. The new structure creates dedicated leadership and resources for system deployment and customer success, while enabling engineering teams to concentrate on advancing processor performance and the Company's published technology roadmap, including its target of 99.5% median two-qubit gate fidelity on Cepheus-1-108Q.

David Rivas, who has served as Rigetti’s Chief Technology Officer since February 2023, has been appointed Chief Operating Officer. In this newly created role, Rivas will oversee fabrication operations, systems delivery, software engineering, applications, business development, government programs, supply chain, and facilities.

Andrew Bestwick, Ph.D., currently Senior Vice President, Quantum Systems, has been appointed Chief Technology Officer. Dr. Bestwick has led the architecture of Rigetti's Cepheus-class multi-chip systems and will oversee quantum processor development, chip fabrication development, and hardware engineering. The technology organization will remain Rigetti’s largest engineering organization, underscoring the Company's continued focus on advancing processor performance and executing its technology roadmap.

Both executives report to Rigetti’s President and Chief Executive Officer Dr. Subodh Kulkarni. The appointments are effective August 18.

"Rigetti’s growing deployment activity makes this the right time to establish a dedicated organization focused on delivering and supporting systems for customers," said Dr. Kulkarni. "This structure gives our commercial and operational teams clear, end-to-end accountability for scaling system delivery, while giving our technology organization even greater focus on quantum processor innovation and performance. David brings deep experience building the operational capabilities that support our systems and customers, and Andrew brings exceptional technical leadership to our chiplet-based architecture. Together, we believe these appointments position Rigetti to execute across both customer deployments and our technology roadmap."

About David Rivas

David Rivas joined Rigetti in March 2019 as Senior Vice President of Systems and Services, where he oversaw the engineering and operations of Rigetti's Quantum Cloud Services platform, and was appointed Chief Technology Officer in February 2023. He previously held executive positions at Sun Microsystems, Nokia, Bolt Threads, and Stage 3 Systems, including leadership of field engineering and services organizations of product management, and core engineering organizations. He holds a B.S. in electrical engineering and an M.S. in electrical engineering from the University of California, San Diego.

About Andrew Bestwick

Andrew Bestwick, Ph.D., joined Rigetti in August 2015 and has held technical and leadership positions spanning chip fabrication, circuit design, cryogenic RF hardware engineering, and system architecture. He was appointed Senior Vice President, Quantum Systems in January 2024. He previously worked in management consulting at Bain & Company. He holds an A.B. in physics and mathematics from Harvard University and a Ph.D. in physics from Stanford University.

About Rigetti

Rigetti is a pioneer in full-stack quantum computing. Rigetti quantum computers are based on superconducting qubits, which are widely believed to be the leading qubit modality given their maturity, clear path to scaling, and fast gate speeds. Rigetti quantum computing systems achieve gate speeds of 50-70 nanoseconds, which is about 10,000 times faster than trapped-ion systems and 100 times faster than neutral-atom systems.

Rigetti sells on-premises 9-qubit to 108-qubit quantum computing systems, which support national laboratories and quantum computing centers. Rigetti’s Cepheus 36-qubit to 108-qubit systems are based on the Company’s proprietary chiplet-based technology and include the Company’s control electronics. Rigetti’s 9-qubit Novera QPU supports a broader R&D community with a high-performance, on-premises QPU designed to plug into a customer’s existing cryogenic and control systems.

The Company operates quantum computers over the cloud through its Rigetti Quantum Cloud Services (QCS) platform, enabling global enterprise, government, and research clients to pursue R&D. The Company’s proprietary quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing.

Rigetti developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. Leveraging this proprietary technology, Rigetti deployed the industry’s largest multi-chip quantum computer in 2026 with Cepheus-1-108Q, based on twelve 9-qubit chiplets tiled together. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at https://www.rigetti.com/.

Contacts

Rigetti Computing Investor Contact:
[email protected]

Rigetti Computing Media Contact:
[email protected]

Cautionary Language and Forward-Looking Statements

Certain statements in this communication may be considered “forward-looking statements” within the meaning of the federal securities laws, including statements with respect to the Company’s expectations with respect to its future success and performance, including the design of the Systems Delivery organization to scale deployment of on-premises quantum systems, strengthen end-to-end operational execution, and further focus its engineering resources on quantum processor development; the advancement of processor performance and the Company's published technology roadmap; the target of 99.5% median two-qubit gate fidelity on Cepheus-1-108Q; and the belief that these appointments position Rigetti to execute across both customer deployments and our technology roadmap. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: the Company’s ability to achieve milestones, technological advancements, including with respect to its technology roadmap; Company’s ability to deliver products to customers in time or at all, including actions by customers, such as controls over their facilities and cancelling orders; the ability of the Company to obtain government contracts successfully and in a timely manner and the availability of government funding; the potential of quantum computing; the success of the Company’s partnerships and collaborations; the Company’s ability to accelerate its development of multiple generations of quantum processors; the outcome of any legal proceedings that may be instituted against the Company or others; the ability to maintain relationships with customers and suppliers and attract and retain management and key employees; costs related to operating as a public company; changes in applicable laws or regulations; the possibility that the Company may be adversely affected by other economic, business, or competitive factors; the Company’s estimates of expenses and profitability; the evolution of the markets in which the Company competes; the ability of the Company to implement its strategic initiatives and expansion plans; the expected use of proceeds from the Company’s past and future financings or other capital; the sufficiency of the Company’s cash resources; unfavorable conditions in the Company’s industry, the global economy or global supply chain, including rising inflation and interest rates, deteriorating international trade relations, political turmoil, natural catastrophes, warfare, and terrorist attacks; and other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 and other documents filed by the Company from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements other than as required by applicable law. The Company does not give any assurance that it will achieve its expectations.

Quantum computers hold the potential to transform the computing industry in as dramatic a fashion as artificial intelligence, perhaps more so. The promise of these machines is that they will harness quantum mechanics to solve extremely complicated calculations in minutes that would take today's best supercomputers centuries.

That potential was a contributing factor to shares of Rigetti Computing (RGTI -4.55%) soaring to a 52-week high of $58.15 last year. Since then, though, the stock has tumbled, reaching a 52-week low of $12.53 in March. It still trades near the lower end of that range, despite working with semiconductor chip leader Nvidia to bring quantum computing capabilities to AI supercomputers.

The situation appears poised to change, however. The company has made strides that point to a rebound in share price ahead. 

Image source: Getty Images.

How Rigetti stands out among competitors The potential power of quantum computers has attracted a number of enterprises, large and small, to the field. What sets them apart are their distinct approaches to constructing quantum devices. At the heart of every quantum computer are qubits -- fundamental units of information that serve the same role as binary bits do in a classical computer. But there are numerous ways to make those qubits, each with advantages and disadvantages, and various players in the space are trying different ones.

Rigetti uses superconducting qubits as the technology behind its quantum processing units (QPUs), which act as the brain and perform calculations in its machines.

Superconducting qubits have the advantage of leveraging existing semiconductor chip manufacturing processes such as optical lithography. Rigetti is pursuing a chiplet-based architecture. This strings together a number of small chips to create the QPU, allowing for faster and more scalable quantum computers. Those attributes make them a compelling choice to combine with Nvidia's proprietary quantum platform, NVQLink.

With NVQLink, Nvidia has created a technology that can connect today's supercomputers with quantum machines. Such hybrid systems will be a key step toward broader adoption of quantum computers, which currently remain too expensive, cumbersome, and inaccurate to achieve widespread usage on their own. For instance, in order to function, quantum computers using superconducting qubits require special cryogenic chambers to keep the equipment at temperatures close to absolute zero.

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Rigetti's rising momentum Rigetti isn't the only quantum computing business partnering with Nvidia, but some signs suggest its technology is poised to capture a meaningful share of the quantum computing market. The company is also collaborating with Hewlett Packard Enterprise to develop a hybrid quantum-classical supercomputer.

Such deals helped Rigetti post revenue of $5.1 million in the second quarter, up from $1.8 million in 2025. Also in Q2, Rigetti was among a handful of quantum computer enterprises selected by the U.S. Department of Commerce to receive funding under the CHIPS and Science Act. The government is investing $100 million in the company -- funds that it will use to "address key technical challenges" that its hardware faces.

Rigetti's stock has already ticked up since the company reported its Q2 results on Aug. 6. On that date, shares closed at $16.53, but the stock ended trading on Aug. 14 at $18.82. If the business can continue to build on its current momentum, shares could rise further.

That said, Rigetti shares are likely to experience plenty of volatility ahead, based on their beta of 2, which reflects their history of oscillating more wildly than the market. Therefore, this is not a stock for the faint of heart.

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Quantum computers can use a concept called superposition to simulate multiple solutions to a problem simultaneously, so they're better than traditional computers at processing data-intensive workloads in areas like science and cryptography. However, despite their incredible potential, even the best quantum computers still make too many errors to be useful for solving real-world problems.

Some estimates suggest this challenge could take decades to overcome, which is bad news for companies trying to commercialize their quantum systems today. Rigetti Computing (RGTI +1.82%) is one of the industry leaders right now, but it's still generating a minimal amount of revenue and burning through a ton of cash. Its stock is currently down by 60% from its peak, and here's where I predict it will be in one year from now.

Image source: Getty Images.

It could take decades to commercialize quantum computers at scale Rigetti has built its own supply chain, so it can bring updated quantum systems to market much faster than its competitors. It operates its own fabrication facility, it developed its own quantum programming language, and it even built a cloud platform where it can monetize quantum computing capacity by renting it to other businesses.

Rigetti's Cepheus-1-108Q is one of the industry's largest multichip systems. It features 108 qubits, which is three times as many as the company's previous Cepheus-1-36Q system. It also boasts a single qubit gate fidelity of 99.9%, meaning it can be expected to make just one error per every 1,000 quantum operations.

However, qubits are highly sensitive to noise and interference, so getting two or more of them to work together in harmony is one of the biggest challenges in quantum computing. Therefore, Cepheus-1-108Q still only has a 2-qubit gate fidelity of 99.1%, implying nine errors per 1,000 operations, which isn't great when applying the computer to complex problems.

Rigetti believes it could take another three years to achieve a 2-qubit gate fidelity of 99.9%, and it will involve improving chip design, materials, and fabrication processes. The company secured a grant from the U.S. government worth $100 million over the next three years, which will help fund some of those improvements.

But in order for quantum computers to actually make an impact in the real world, Cathie Wood's Ark Investment Management predicts another 20 to 40 years' worth of development is required. That means Rigetti's shareholders might have to endure billions of dollars' worth of research and development spending before they see meaningful revenue.

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Minimal revenue and steep losses Rigetti's revenue rocketed higher by 185% year over year during the second quarter of 2026 (ended June 30) -- but it totaled just $5.1 million. That is a minuscule amount of money for a company with a market capitalization of nearly $6 billion.

On a positive note, more quarterly revenue growth is likely ahead. Rigetti is currently working on an $8.4 million order for a Cepheus-1-108Q system, which will be delivered to India's Center for Development of Advanced Computing sometime in the fourth quarter of this year.

But Rigetti will have to find significantly more revenue in the near future to offset its soaring costs. It had $30.2 million in total operating expenses during the second quarter, up 48% from the year-ago period. Since that dwarfed the company's revenue, it resulted in a sizable net loss of $52.6 million.

Rigetti had $541 million in cash and cash equivalents on hand as of June 30, so it can afford to sustain its losses for the foreseeable future. But given how long it could take to commercialize quantum computers at scale, I think there is a high chance the company will have to raise more money from investors in the future, which will dilute existing shareholders.

Based on Rigetti's modest revenue and sizable market cap, its stock is trading at a sky-high price-to-sales (P/S) ratio of 437. For some perspective, the Nasdaq-100 index has a P/S ratio of 6.2, so Rigetti is a whopping 70 times more expensive than a basket of America's highest-quality technology stocks.

Even if we value the stock based on Wall Street's average 2027 revenue estimate of $44.1 million, its stock still has a forward P/S ratio of 133 -- and there is no guarantee that revenue forecast will prove to be accurate given the unpredictable nature of demand for quantum systems.

RGTI PS Ratio data by YCharts

Therefore, even if Rigetti stock crashed by 95% from its current price over the next 12 months, it would still be more expensive than the Nasdaq-100. I'm not predicting a decline of that magnitude, because there will always be some investors and investment funds willing to hold quantum computing stocks for their long-term potential.

However, I think it's possible Rigetti stock continues to trend lower and perhaps even falls below $10 over the next year, particularly if it appears the company will miss Wall Street's 2027 revenue forecast. In any case, I certainly won't be a buyer at anywhere near the current price.

RGTI's Q2 revenues surge 185% as QPU sales and technology gains boost momentum, but heavy losses and uneven demand keep caution in focus.

HomeStock IdeasLong IdeasTech 

SummaryIonQ (IONQ) maintains a clear lead over Rigetti (RGTI) in commercial traction, revenue growth, and platform integration, justifying a Buy IONQ/Sell RGTI pair trade. The recent ~32 percentage point spread in favor of IONQ reflects both market beta and a widening fundamental gap, with further upside possible as fundamentals are increasingly recognized. IONQ's Q2 results highlight ~287% YoY revenue growth (mostly organic), raised full-year guidance, a strong backlog, and strategic SkyWater acquisition, reinforcing its superior thesis. RGTI remains in an R&D-heavy phase with high cash burn, dilution risk, and slower commercial progress, making its valuation premium increasingly difficult to justify. Fasai Budkaew/iStock via Getty Images

I have been recommending a Buy IonQ (IONQ) and Sell Rigetti Computing (RGTI) since December last year as a pair primarily to avoid a directional bet on quantum computing and

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Rigetti Computing (RGTI +1.44%) stock has been on a tear, and the rally is not random trading noise. It is being fueled by a string of company announcements that, taken together, make Rigetti look less like a tiny lab project and more like an emerging strategic asset in government-backed quantum infrastructure. The excitement is understandable, even if the risk is still very real.

A CHIPS Act endorsement that changes the narrative The turning point was Rigetti's announcement on May 21 that it had signed a letter of intent with the U.S. Department of Commerce for an award of up to $100 million over three years under the CHIPS and Science Act. That money is earmarked for superconducting quantum computing research and development, aimed at tackling the hard engineering problems of scaling multi-chip quantum processors.

Image source: Getty Images.

Under the letter of intent, the Department of Commerce would receive an equity stake in Rigetti equal to the funding amount, issued at an implied price based on the lowest closing share price around the key dates, discounted by 15%. In plain language, the U.S. government is prepared to become a shareholder in Rigetti at a valuation that reflects its pre-surge trading level.

For many investors, this looks like validation that this technology and this company belong in the national strategic toolkit, not just in speculative portfolios.

A 100-million-dollar U.K. bet on 1,000-plus qubits Around the same time, Rigetti announced plans to invest up to $100 million in the United Kingdom to deploy a quantum computer with more than 1,000 qubits within the next three to four years. This is the company's first major investment outside the U.S., building on an existing 36-qubit system at the U.K.'s National Quantum Computing Center.

The U.K. plan is not happening in a vacuum. It explicitly ties into the British government's 2-billion-pound quantum program, which aims to procure large-scale quantum systems by the early 2030s. Investors look at that combination -- a concrete qubit target, a clear deployment window, and alignment with a major public program -- and see a path in which Rigetti's hardware could become embedded in long-term national infrastructure, rather than just short-term cloud experiments.

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Under the rally, a business still in early innings Behind the headlines, Rigetti's own first-quarter 2026 numbers remind you that this is still an early-stage story. On its earnings call, the company reported revenue of $4.4 million, up from $1.5 million a year earlier, largely driven by deliveries of on-premises NOVA quantum processing units and government research contracts. Gross margin improved to about 31%, but operating loss widened to roughly $26 million as the company spent heavily on research and development and commercialization.

So the rally is being driven less by current profits and more by the idea that with U.S. CHIPS funding, U.K. co-investment, and growing hardware deployments, Rigetti is finally getting the runway and partners it needs to chase scale. That is a powerful story, but investors should keep the other side of it in view.

Key Takeaways Rigetti's Q2 revenues rose 185.3% to $5.1 million, beating the consensus estimate by 4.68%.RGTI's operating loss widened to $28.1 million as R&D and SG&A expenses increased sharply.Rigetti advanced Cepheus-1-108Q while targeting about 1,000 qubits and 99.9% two-qubit fidelity. Rigetti Computing (RGTI - Free Report) reported second-quarter 2026 adjusted loss per share of 5 cents, wider than 4 cents in the prior-year quarter. The metric also missed the Zacks Consensus Estimate of earnings by 66.7%.

GAAP loss per share in the reported quarter was 16 cents compared with 13 cents in the prior-year quarter.

The company reported total revenues of $5.1 million, up 185.3% year over year. The top line surpassed the Zacks Consensus Estimate by 4.68%.

Shares of this company lost 3.5% in yesterday’s after-market trading. The company’s shares have plunged 22.6% in the year-to-date period compared with the industry’s decrease of 5.8%. However, the broader S&P 500 Index has increased 12.4% in the same time frame.

Image Source: Zacks Investment Research

Rigetti’s Q2 Revenue GrowthRigetti’s second-quarter 2026 revenues benefited from growing demand for its on-premises quantum computing systems, including Novera-based deployments, along with broader engagement across government, academic and commercial customers.

RGTI’s Margin TrendIn the quarter under review, RGTI’s gross profit surged 286.6% year over year to $2.2 million. The gross margin expanded roughly 1,120 basis points to 42.6%.

Selling, general and administrative expenses increased 37.5% year over year to $9.5 million. Research and development expenses rose 53.3% year over year to $20.7 million. Total operating expenses of $30.3 million increased 47.9% year over year.

Operating loss for the quarter under review totaled $28.1 million compared with $19.9 million in the prior-year quarter.

RGTI’s Financial PositionRGTI exited the second quarter of 2026 with cash, cash equivalents and short-term available-for-sale investments of $393.7 million compared with $418.2 million at the end of the first quarter of 2026.

The company ended the quarter with no debts on its balance sheet.

Cumulative net cash provided by operating activities at the second-quarter end was $14.9 million against net cash used in operating activities of $369.7 million a year ago.

Wrapping UpRigetti exited second-quarter 2026 with mixed results, wherein revenues surpassed the Zacks Consensus Estimate, but earnings missed the same. Strong year-over-year revenue growth, driven by on-premises Novera QPU and system deliveries, was encouraging.

Customer engagement also broadened across government, academic and commercial markets. Rigetti continued to fulfill on-premises system commitments, including its 108-qubit program for C-DAC in India. The company also expanded its collaboration with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center. A 9-qubit Novera system is set to be deployed at PSC’s TangleLab testbed to support hybrid quantum-classical computing research.

On the technology front, Rigetti continued to advance its Cepheus platform. Cepheus-1-108Q operated at approximately 99.1% median two-qubit gate fidelity, 99.9% median single-qubit gate fidelity and gate speeds of about 60 nanoseconds. The company also demonstrated median two-qubit gate fidelities of 99.8% and 99.6% on its 9-qubit and 36-qubit systems, respectively.

Rigetti remains focused on improving coherence time through chip design, fabrication, materials and process enhancements. Its longer-term roadmap targets roughly 1,000 qubits, 99.9% two-qubit gate fidelity and gate speeds below 50 nanoseconds. The Department of Commerce letter of intent for up to $100 million of potential funding could further support R&D aimed at addressing scaling challenges in superconducting quantum computing.

However, profitability remains a concern. Non-GAAP net loss widened to $16 million from $13.3 million a year ago, while operating loss increased to $28.1 million. Higher research and development and selling, general and administrative expenses continued to weigh on results. Rigetti also faces the technical challenge of improving coherence and fidelity as systems scale to higher qubit counts. The Department of Commerce funding is subject to definitive award documentation and milestone requirements. Nevertheless, the company ended the quarter with $541.3 million in cash, cash equivalents and available-for-sale investments and no debt, providing financial flexibility to support its technology roadmap and system deployments.

Zacks Rank and Stocks to ConsiderRGTI carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are McKesson (MCK - Free Report) , Phibro Animal Health (PAHC - Free Report) andCardinal Health (CAH - Free Report) .

McKesson carries a Zacks Rank #2 (Buy) at present and has an estimated long-term growth rate of 13.7%. MCK’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.09%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

McKessonshares have gained 8.8% against the industry’s 12.7% decline in the year-to-date period.

Phibro Animal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.25%.

Phibro Animal Health stock has climbed 44.2% against the industry’s 17.1% decline in the year-to-date period.

Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%.

Cardinal Health’s shares have lost 2.6% compared with the industry’s 3.1% decline in the year-to-date period.

BERKELEY, Calif., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) (“Rigetti” or the “Company”), a pioneer in full-stack quantum-classical computing, today announced financial results for the second quarter ended June 30, 2026 and provided an update on recent business and technology milestones.

Rigetti Computing Inc. (NASDAQ:RGTI) posted its second-quarter results after Thursday’s closing bell, missing analysts’ revenue estimates. Here’s a look at the details inside the report. 

RGTI stock is moving. Watch the price action here. Rigetti Q2 Details       Rigetti reported quarterly losses of five cents per share, in line with the analyst consensus estimate, according to Benzinga Pro data.

Quarterly revenue came in at $5.1 million, which missed the Street estimate of $5.15 million.

“In the second quarter, we continued to execute on our strategy by focusing on our system performance, progressing our core technology roadmap and broadening on-premises system deployments,” said Dr. Subodh Kulkarni, CEO of Rigetti.

“We are seeing broadening engagement across government, academic and commercial customers, and we believe our open modular approach, superconducting gate-based architecture, and chiplet-based scaling strategy continue to differentiate Rigetti in the market,” Kulkarni added.

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RGTI Stock Price Activity: According to data from Benzinga Pro, Rigetti stock was down 4.6% to $15.77 in Thursday’s extended trading.  

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Live Coverage Updates appear automatically as they are published.

Live Updates 12 minutes ago

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In May of 2026, Rigetti announced they had signed a letter of intent with the U.S. Department of Commerce for up to $100 million in potential funding over three years.

The proposed CHIPS Act-backed award would support research addressing major obstacles to scaling superconducting quantum computers, although the Commerce Department would receive an equity stake consistent with the final funding amount.

Rigetti ended the second quarter with $541.3 million in cash and investments and no debt. That balance sheet gives the company substantial runway to fund its technology roadmap, including a planned investment of up to $100 million in the United Kingdom.

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Rigetti reaffirmed its goal of developing systems with approximately 1,000 qubits, 99.9% two-qubit gate fidelity, and gate speeds below 50 nanoseconds within roughly three years.

Its recently launched 108-qubit Cepheus-1 system currently achieves approximately 99.1% median two-qubit gate fidelity and 60-nanosecond gate speeds.

Rigetti has already demonstrated higher two-qubit fidelity of 99.8% on nine-qubit systems and 99.6% at the 36-qubit level.

41 minutes ago

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Rigetti Computing just reported earnings, with shares initially down 4% following the report. Here are the key numbers:

Revenue: $5.138 million vs. $5.13 million expected Adjusted EPS: Loss of $0.05 vs. loss of $0.05 expected Quick Read:

Rigetti’s revenue edged past expectations, while its adjusted loss matched Wall Street’s estimate.

Revenue soared 185% year over year, but losses widened by 25%, keeping profitability concerns firmly in focus.

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Warrant liability whipsaw. GAAP results remain hostage to non-cash mark-to-market swings on derivative warrants. Q1 26 posted a $53.70 million favorable swing; Q3 25 absorbed a $181.96M charge. Expect another distorted headline number. Insider selling pressure. Senior leadership disposed of roughly 702,214 common shares at $20 to $26 in May and June, including a 499,328-share CTO sale on May 29. Options skew. The August 28 put/call ratio of 4.89 and September 4 ratio of 3.8 signal aggressive downside hedging into the post-earnings window. FX and geopolitics. The $100 million UK deployment introduces GBP exposure, alongside India, Japan, and Italy subsidiary plans, all vulnerable to deteriorating international trade relations. 1 hour ago

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Bull Case Q1 2026 revenue nearly tripled to $4.4M YoY, with Novera QPU shipments and the $8.4M C-DAC order supporting H2 momentum. Analyst consensus target of $29.65 implies 78.78% upside, with 9 Buys versus 4 Holds. Shares rallied 26.93% over the past week into the report, hinting at positive positioning. Bear Case Consensus EPS sits at -$0.05, a slight deterioration from Q1’s -$0.04. Q2 2025 revenue fell 41.64% YoY and EPS missed by 225%, illustrating lumpiness risk. Insiders were net sellers, with CTO David Rivas disposing of 499,328 shares at $25.396. Stock remains down 24.24% YTD despite the rebound. 1 hour ago

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With Rigetti Computing (NASDAQ:RGTI) set to report at 4:05 PM ET, here are some key KPIs to watch in tonight’s report:

KPIs to Watch Novera QPU revenue recognition. CFO Bertelsen said the remainder of the $5.7 million order slate lands in Q2. Progress toward the 99.5% two-qubit fidelity target on Cepheus-1-108Q. Timing on the $8.4 million C-DAC India system. Price Action and Triggers Shares gained 26.93% over the past week but sit -24.24% year-to-date.

History cautions: RGTI’s average one-week post-earnings move is -7.19% despite frequent beats. Revenue materially above $4.4 million, plus a fidelity milestone, could counter that pattern.

1 hour ago

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With Rigetti’s earnings call set for after today’s close, here’s what to listen for from CEO Subodh Kulkarni and the team.

Top Analyst Questions Will Q2 revenue sustain Q1’s $4.4M pace, or slip on hardware-timing lumpiness? Status of the $8.4 million C-DAC 108-qubit order and the Japanese Novera shipment? Progress toward the 150+ qubit target by year-end 2026? Update on DARPA QBI Stage B selection? Cadence of the $100 million UK deployment spend? Key Topics And Buzzwords Listen for “median two-qubit gate fidelity,” “chiplet-based architecture,” “NVQLink,” “fault-tolerant,” and “quantum advantage.” Red Flags Operating loss expanding beyond Q1’s $26 million, further dilution signals, or slipped roadmap milestones. Note the 33 recent insider transactions skewing net selling. 2 hours ago

Live

Rigetti Computing reports second-quarter 2026 earnings at about 4:05 PM ET, with shares trading around $17.04 following a -30% performance so far this year.

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Investors will focus on Novera QPU deliveries, early traction for the Cepheus-1-108Q system, and Rigetti’s expansion in the United Kingdom.

The company’s $569 million cash cushion gives management substantial runway to execute its quantum-computing roadmap, although widening operating losses continue to raise the stakes.

Rigetti trades at roughly 199x forward sales, leaving little room for execution problems. A clean Novera rollout and credible fidelity update could support the 74% upside implied by Wall Street’s average price target.

Rigetti Computing (NASDAQ:RGTI) reports Q2 2026 results after the bell today at 4:05 PM ET. The earnings report lands with shares up over 10% in the past week, yet the stock is down roughly 24.24% year to date, making management’s tone on commercial traction an important factor for the stock’s reaction tonight.

Momentum Meets Execution Risk Last quarter, Rigetti nearly tripled revenue to $4.4 million from $1.5 million a year earlier, powered by Novera QPU sales and government-linked projects. Gross margin held at 31%, and Non-GAAP EPS came in at -$0.04, beating the consensus by 6.76%.

Operating loss widened to $26.0 million as R&D climbed to $19.96 million. Management put the 108-qubit Cepheus-1-108Q into general availability on Rigetti QCS, Amazon Braket, Microsoft Azure Quantum, and qBraid. Shares closed +8.29% on the day, then gave back -18.97% over the following week.

Q1 Results For reference, Rigetti saw Q1 numbers of:

$4.4M revenue 31% gross margin -$0.04 Non-GAAP EPS Management flagged the remaining $5.7 million in announced Novera POs for Q2 recognition, while the $8.4 million C-DAC order remains scheduled for Q4 acceptance. Sell-side consensus points to a $29.65 price target with 9 buy ratings and 4 holds, which implies meaningful upside from the stock’s current price of $16.71.

What I’m Watching Tonight Tonight, I’ll be watching the Novera revenue split. CFO Jeffrey Bertelsen said Q1 recognized “a little bit less than half” of the $5.7M in POs, so Q2 needs to close the gap to validate on-premises demand.

Investors will also focus on fidelity progress. CEO Subodh Kulkarni committed to “driving Cepheus-1-108Q to a median two-qubit gate fidelity of approximately 99.5% later this year,” up from the current 99.1%.

I’ll also track the UK $100 million deployment cadence tied to the ProQure program, as well as updates on NVIDIA NVQLink, Riverlane error-correction work, and Quanta-built control systems.

Cash burn is another important item to watch, with operating expenses of $27.3 million against still-modest revenue. Finally, I’ll be watching Kulkarni’s tone on commercial pipeline conversion versus government and academic orders, which remain the near-term backbone.

Earnings History Quarter EPS Surprise 1-Day Move 7-Day Move 30-Day Move Q1 2026 +6.76% -7.02% -18.97% +0.59% Q4 2025 +5.36% +0.24% -5.3% -18.44% Q3 2025 +25% -9.87% -18.12% -17.71% Q2 2025 -225% +4.29% -14.39% +11.43% On average, shares moved -7.19% in the week following earnings over the past year.

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Artificial intelligence (AI) is creating several multi-trillion-dollar opportunities. Some experts, for example, believe robotaxis will one day be a $10 trillion market. That has been made possible by rapid advancements in AI, which in turn are rapidly improving self-driving capabilities.

There's also the ongoing data center build-out, which some experts believe is a $7 trillion opportunity over the next few years alone. The list goes on and on. Put simply, AI is a transformational technology. Wall Street doesn't want investors to miss their opportunity.

Below are two stocks that certain analysts are highly bullish on.

Image source: Getty Images.

1. Rigetti Computing Rigetti Computing (RGTI -2.95%) is technically a quantum computing stock, but the future of quantum computing is heavily intertwined with advancements in AI. Quantum hardware shares many components with AI, and both technologies will likely be used in tandem for future applications.

Nine analysts actively cover Rigetti stock. Six have a "buy" rating on shares, while the other three have a "hold" rating. The average price target is $30.71, suggesting around 90% upside potential from the current price over the next 12 to 18 months.

The most bullish analyst covering Rigetti stock is John McPeake from Rosenblatt Securities, a boutique investment bank. His price target of $40 suggests roughly 150% in potential upside. McPeake reiterated his prediction on July 29.

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In June, David Rivas, the Chief Technology Officer of Rigetti, sold 499,328 shares for $12.7 million. Rigetti also still hasn't fully resolved concerns regarding its technology development and product release delays. Technical and commercial scaling challenges remain a major drag on the company's stock price, which has fallen roughly 30% year to date.

Still, McPeake is bullish on Rigetti's ability to overcome these challenges. Given quantum computing's unparalleled ability to process complex data and assist with the development and execution of AI models, Rigetti looks like an intriguing stock exposed to both quantum and AI tailwinds, trading at a discount to both previous trading levels and Wall Street expectations.

2. SoundHound AI SoundHound AI (SOUN -0.64%) is more directly exposed to AI than Rigetti Computing, as it derives most of its revenue from AI products and services. Year to date, shares are down 42% in value. But all four Wall Street analysts who cover the stock have a "buy" rating, with an average price target of $12.75, suggesting around 110% upside.

Scott Buck of H.C. Wainwright, a New York investment bank, is the most bullish analyst. His price target of $20 implies around 228% in potential upside.

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Earlier this year, Buck pointed out SoundHound AI's strong sales growth. Both new customers and customer renewals helped SoundHound AI achieve 100% sales growth in 2025. Strong sales growth, Buck believes, will help the company reach positive adjusted EBITDA margins by late 2026.

SoundHound AI reports earnings on Aug. 5. Earlier this week, I commented on the upcoming report, saying:

Wall Street remains bullish on SoundHound AI largely because analysts believe the company can accelerate the cross-selling of products to existing customers. This would not only accelerate sales growth beyond simply acquiring new customers but also boost margins, as selling to existing customers usually doesn't involve the high costs of acquiring new customers.

That lines up cleanly with Buck's investment thesis. Progress on cross-selling products and margin expansion will strongly influence SoundHound AI's stock once earnings are announced.

The quantum computing race is accelerating as firms move from theoretical models to functional hardware. Is IonQ (IONQ +1.87%) or Rigetti Computing (RGTI +0.61%) the better buy for your portfolio in 2026?

Both companies represent a high-stakes bet on the future of high-performance computing. IonQ focuses on trapped-ion technology to build its systems, while Rigetti specializes in superconducting processors. This comparison evaluates their financial health, strategic growth, and unique risks to help you decide which stock is a more compelling opportunity today.

The case for IonQIonQ develops trapped-ion quantum computers and offers cloud access to government, enterprise, and research customers. The company recently completed the acquisition of SkyWater Technology, establishing a domestic semiconductor foundry to bolster its infrastructure. Customer concentration like this adds a layer of risk to the business, as revenue heavily depends on a few government entities and cloud partnerships.

In FY 2025, revenue reached nearly $130.0 million, which was a 201.9% increase from the roughly $43.1 million reported in FY 2024. Despite this top-line surge, the company reported a net loss of approximately $510.4 million. The net margin was roughly -392.6%, which measures what percentage of each dollar earned as revenue remains after accounting for all expenses.

As of its December 2025 balance sheet, the debt-to-equity ratio was 0.0x, meaning total debt is zero relative to shareholder equity. The current ratio, which measures the ability to cover short-term liabilities with short-term assets, was roughly 15.5x. Free cash flow was negative $299.6 million, representing cash from operations minus capital expenditures for the fiscal year.

The case for Rigetti ComputingRigetti Computing builds superconducting quantum processors and provides cloud access through its proprietary platform. It operates among tech stocks and serves commercial clients like Amazon and Hewlett Packard Enterprise. In July 2026, it expanded its collaboration to build TangleLab, a hybrid quantum-classical testbed for specialized research.

In FY 2025, revenue reached nearly $7.1 million, which was a 34.3% decrease from the approximately $10.8 million generated in FY 2024. The company recorded a net loss of roughly $216.2 million for the period. This resulted in a net margin of approximately -3,050.4%, illustrating that operating expenses currently far exceed its revenue base.

As of its December 2025 balance sheet, the current ratio was roughly 37.4x, indicating the company has approximately $37.40 in current assets for every dollar of current liabilities. The debt-to-equity ratio was 0.0x, meaning the company carries no debt relative to its equity. Free cash flow was negative $77.2 million, which is calculated by subtracting capital expenditures from operating cash flow.

Risk profile comparisonIonQ faces significant barriers to achieving scalable computing and expects to continue its history of operating losses. The $1.8 billion acquisition of SkyWater Technology introduces integration complexities that could harm the business if strategic benefits are not realized. It also faces intense competition from established giants and sovereign-backed programs, including Microsoft and Alphabet.

Rigetti faces technical risks in scaling its modular architecture and improving gate fidelities to reach quantum advantage. The business is capital-intensive and may require additional funding to avoid downsizing or the risk of bankruptcy. It relies on third-party cloud infrastructure from Amazon and must navigate evolving international export controls and scrutiny over internal financial controls.

Valuation comparisonIonQ appears cheaper on a relative sales basis, though both companies lack a Forward P/E because they lack positive earnings estimates. The P/S ratio, which compares market value to annual revenue, reflects high valuations for both firms.

MetricIonQRigetti ComputingForward P/EN/AN/AP/S ratio72.7x496.1xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

I’d go with IonQ. Both companies are working on genuine breakthroughs in quantum computing, and both are still early enough that picking a winner feels like educated speculation. But the gap between them in terms of commercial traction is wide enough to make this a reasonably clear call.

Rigetti is certainly making good progress, with revenue nearly tripling in the most recent quarter. The company has a CHIPS Act funding letter of intent in hand, and its 108-qubit system is an important hardware milestone. But Rigetti’s revenue is still tiny, and significant insider selling in recent months is not exactly a good sign.

IonQ is outpacing Rigetti on nearly every commercial metric right now. Revenue surged dramatically in the most recent quarter, far exceeding its own guidance, and the company raised its full-year outlook substantially. Its backlog grew more than 500%year over year, reflecting strong commercial demand across government, enterprise, and international customers. And the SkyWater acquisition adds semiconductor manufacturing capabilities that could accelerate its hardware roadmap.

If you're going to bet on quantum computing in 2026, IonQ gives you more evidence that the commercial moment is actually arriving.

Quantum computing stocks have not been spared in the recent tech sell-off. While the technology holds promise to be the next big breakthrough after AI, it is still very much in its infancy. Various techniques and companies are vying to crack the quantum code, and while there is no guarantee which one will come out on top, some certainly look better positioned than others.

Let's look at one quantum computing stock to buy, one to sell, and one to hold on this recent dip.

Image source: Getty Images.

IonQ If there were one quantum computing stock I'd buy and tuck away over the next decade, it would be IonQ (IONQ +11.82%). One of the biggest obstacles the industry faces today is that quantum computers are currently very error-prone. Because quantum computing uses qubits, which are in a state of superposition, instead of traditional bits, they are very sensitive to failing due to outside forces such as vibrations or temperature changes. While the industry still needs to make big strides, IonQ is currently the accuracy leader, achieving 99.99% 2-qubit gate fidelity.

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IonQ's accuracy lead can be largely attributed to its trapped-ion approach. Instead of using fabricated qubits, it starts by using actual charged atoms (ions), which are identical in nature and less fragile. While traditional trapped-ion systems use electric fields to suspend the ions and rely on complex laser setups to control and entangle them, IonQ embeds microwave antennas directly into its chips to manipulate the qubits electronically, dramatically improving stability. This on-chip technique also reduces the system's size, which will be important later when the company looks to commercialize and scale quantum computers.

In addition to its accuracy edge, IonQ is also looking to control the entire quantum ecosystem. It has made acquisitions to get into the areas of quantum networking, sensing, and transmission. It is also in the process of acquiring quantum foundry SkyWater, helping it become vertically integrated. Given its accuracy leadership and ecosystem approach, this is the quantum stock to buy.

Rigetti Computing One quantum stock I'd be looking to sell is Rigetti Computing (RGTI +12.40%). While the company's superconducting qubit approach offers a significant speed advantage over trapped-ion systems, it lags in accuracy and requires expensive dilution refrigerators, as superconducting qubits must be cooled to near absolute zero to operate.

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Rigetti, meanwhile, has struggled to reach accuracy milestones. Its Cepheus-1-108Q system was delayed earlier this year due to accuracy issues, and was eventually brought to market with 99.1% 2-qubit gate fidelity, missing its 99.5% target. While that may sound close to IonQ's 99.99% fidelity, in the world of computing, it's not even in the same ballpark.

Meanwhile, Rigetti also suffered a reputational blow when it wasn't chosen for Stage B of the Quantum Benchmarking Initiative (QBI) of the U.S. Defense Advanced Research Projects Agency (DARPA). This is a Pentagon-funded program to identify and back the best quantum computing technologies.

Infleqtion The one quantum computing stock I'd hold right now is Infleqtion (INFQ +13.02%). The company has found a nice niche in the realm of quantum sensing, with its quantum sensing and precision timing tools being used by the U.S. and U.K. governments.

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However, what makes the company particularly interesting is its neutral-atom technology. Similar to the trapped-ion approach, it uses individual atoms that are manipulated and cooled with lasers. However, it removes their mutual repulsion, allowing higher qubit densities.

The technology is faster than the trapped-ion approach, while it is more accurate than using superconducting qubits. The company achieved 99.73% 2-gate fidelity back in 2024, so it's likely made strides that will boost that number. Given how promising neutral atom technology looks, Infleqtion is a stock I'd keep holding.

Key Takeaways Rigetti's Q2 results may show remaining Novera revenues and early traction for the 108-qubit Cepheus-1.Investors will watch cloud usage, contracts and progress toward 99.5% two-qubit gate fidelity.RGTI targets a 150-qubit system and a 1,000-qubit quantum advantage platform within roughly three years. Rigetti Computing’s (RGTI - Free Report) second-quarter 2026 results, scheduled to report on Aug. 6, after market close, are likely to underscore continued commercial traction rather than a dramatic financial inflection. Investors are likely to primarily focus on whether the company recognized the remaining revenues from previously announced Novera quantum processing unit orders. Management had guided that the amount would largely be booked in the second quarter after partial recognition in the first quarter.

Another key area of interest is likely to be the customer adoption of the newly launched 108-qubit Cepheus-1 system across Rigetti Quantum Cloud Services, Amazon Braket, Microsoft Azure Quantum and qBraid. On its first-quarter earnings call, management commented that early customer interest and system usage had been encouraging. Investors will also watch for updates on cloud utilization trends, additional government or research contracts and the pace of commercial engagement as enterprises continue evaluating hybrid quantum-classical computing applications.

Beyond quarterly numbers, investors will be looking for progress on Rigetti's technology roadmap. The focus will particularly be on efforts to improve Cepheus-1's two-qubit gate fidelity toward the company's 99.5% target later this year. Investors will also monitor progress on Rigetti's roadmap to launch a 150-qubit system and ultimately achieve a 1,000-qubit quantum advantage platform within roughly three years. Since the first-quarter report, Rigetti has further strengthened its commercial positioning through continued momentum in government-backed quantum initiatives, including execution of its C-DAC program in India and expansion of its global footprint.

Investors will also watch for additional Novera system wins, progress on the company's planned U.K. investment and advances in error mitigation through partnerships such as Riverlane and NVIDIA. Updates on the timing of the higher-fidelity 108-qubit system and the next-generation 150-qubit platform could also serve as key drivers of investor sentiment.

While operating losses are expected to remain elevated as Rigetti continues to prioritize R&D investments, investors will closely monitor the company's progress toward key technology milestones and customer adoption. The company's strong cash position and debt-free balance sheet should provide the financial flexibility needed to execute its long-term quantum computing roadmap.

Peers UpdatesIonQ's (IONQ - Free Report) second-quarter 2026 results, scheduled for Aug. 5, are expected to highlight continued commercial execution as the company expands its quantum networking and computing footprint. Investors are likely to focus on bookings growth, customer additions and progress integrating recent acquisitions, alongside updates on government and enterprise contracts. Commentary around the company's roadmap toward fault-tolerant quantum systems and the pace of quantum networking deployments could also be key catalysts.

D-Wave Quantum (QBTS - Free Report) second-quarter 2026 earnings, scheduled to be reported on Aug. 6, are expected to reflect continued demand for its annealing quantum computing platform and expanding commercial adoption. Investors will watch for growth in quantum optimization revenues, customer wins and increased usage of its Leap quantum cloud service. Updates on the commercialization of its next-generation Advantage2 system, along with customer traction across logistics, manufacturing and government markets, will likely be closely monitored.

Rigetti’s Price Performance, Valuation and EstimatesShares of RGTI have lost 36.2% in the year-to-date period compared with the industry’s decline of 11.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, Rigetti trades at a price-to-book ratio of 8.06, above the industry average. RGTI carries a Value Score of F.

Image Source: Zacks Investment Research

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

Image Source: Zacks Investment Research

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.