In the latest trading session, Rigetti Computing, Inc. (RGTI - Free Report) closed at $14.15, marking a -4.71% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.05%. Meanwhile, the Dow gained 0.46%, and the Nasdaq, a tech-heavy index, lost 0.64%.
Prior to today's trading, shares of the company had lost 19.34% lagged the Computer and Technology sector's loss of 3.62% and the S&P 500's gain of 0.61%.
Market participants will be closely following the financial results of Rigetti Computing, Inc. in its upcoming release. The company plans to announce its earnings on August 6, 2026. The company is expected to report EPS of -$0.03, up 40% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $4.91 million, up 173% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of -$0.18 per share and a revenue of $25.32 million, demonstrating changes of +71.88% and +257.28%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Rigetti Computing, Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Rigetti Computing, Inc. possesses a Zacks Rank of #3 (Hold).
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 154, this industry ranks in the bottom 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Rigetti Computing (RGTI -2.50%) is one of the most prominent pure-play names in the emerging quantum computing space.
It is important to note that this is an early-stage technology that is years away, maybe even a decade or more, from being ready for wide commercial adoption. However, according to a 2026 report from McKinsey, quantum computing could deliver $1.3 trilion to $2.7 trillion in economic value to companies by 2035.
And the space is growing. In 2025, according to McKinsey, quantum computing companies generated about $1 billion in revenue. In 2028, they expect that to grow to $4.4 billion.
"By creating the teams and capabilities to succeed with quantum now, first movers can capture an early advantage," the McKinsey report said. "They can also secure intellectual property to build defensible ownership of key quantum computing applications."
Rigetti may be one of the leading pure-play quantum computing stocks. But tech behemoths like IBM (IBM +0.41%), Alphabet (GOOG -6.88%), and Microsoft (MSFT -2.13%) are also investing heavily in the space.
That points to one of the risks inherent in investing in small companies in emerging industries -- the big guys may come in and take over. That's not to say that some of the many start-ups in the space won't eventually emerge as quantum computing powerhouses, but it is unlikely that all of them will.
Where does Rigetti fit in?
Image source: Getty Images.
A quantum advantage Rigetti makes superconducting qubit processors and has a full-stack system for quantum computing that includes chip fabrication, packaging, architecture, control systems, and cloud infrastructure. That full-stack vertical integration makes it different from most of its competitors, particularly the pure-play rivals.
The company is generating very little revenue right now. In the first quarter, its top line was just $4.4 million, most of which came from government, academic, and research customers using its systems. But that was up from $1.7 million a year earlier.
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It also had $33 million in net income, but the positive side of that came entirely from a $53.7 million gain from fair value accounting changes. It had an adjusted net loss of $14.7 million or $0.04 per share. The good news is, it has $569 million in cash and equivalents on its books, and no debt, which puts it in good shape to keep investing in developing its technology in pursuit of a commercializable offering.
Is Rigetti stock a buy? In late May, Rigetti stock popped from around $16 to over $27 per share after it was announced that it had signed a $100 million letter of intent with the U.S. Department of Commerce for quantum computing research and development.
But the stock soon retreated, and closed trading Thursday at $14.85 per share. Such is the volatile nature of a speculative stock backed by little revenue and no real profits. Currently, the stock is down about 33% year-to-date.
Such ups and downs will likely be the pattern for Rigetti stock until the quantum computing industry matures. Wall Street analysts have a median 12-month price target of $30.50 per share on the stock, which would suggest more than 100% upside and get it above where it traded in May. But it could be prone to wild swings along the way.
If you want to take a chance on a more speculative play like this, it would be wise to make it a relatively small position in your portfolio, and to be prepared for a lot of volatility.
Rigetti Computing, Inc. (RGTI - Free Report) ended the recent trading session at $14.85, demonstrating a -2.5% change from the preceding day's closing price. This change lagged the S&P 500's 1.21% loss on the day. Elsewhere, the Dow saw a downswing of 0.97%, while the tech-heavy Nasdaq depreciated by 2.15%.
Coming into today, shares of the company had lost 22.02% in the past month. In that same time, the Computer and Technology sector lost 4.58%, while the S&P 500 gained 0.42%.
The investment community will be closely monitoring the performance of Rigetti Computing, Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be -$0.03, reflecting a 40% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $4.91 million, showing a 173% escalation compared to the year-ago quarter.
RGTI's full-year Zacks Consensus Estimates are calling for earnings of -$0.18 per share and revenue of $25.32 million. These results would represent year-over-year changes of +71.88% and +257.28%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Rigetti Computing, Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Rigetti Computing, Inc. is carrying a Zacks Rank of #3 (Hold).
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
July 23, 2026 16:05 ET | Source: Rigetti Computing, Inc.
BERKELEY, Calif., July 23, 2026 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. ("Rigetti" or the "Company") (Nasdaq: RGTI), a pioneer in hybrid quantum-classical computing, announced today that it will release second quarter 2026 results on Thursday, August 6, 2026, after market close. The Company will host a conference call to discuss its financial results and provide an update on its business operations at 5:00 p.m. ET the same day.
Key details regarding the call are as follows:
Call Date: Thursday, August 6, 2026
Call Time: 5:00 p.m. ET / 2:00 p.m. PT
Webcast Link: https://edge.media-server.com/mmc/p/9pedzvky
Live Call Participant Link: https://register-conf.media-server.com/register/BI6483c92f267f4169a6d27a72dc7c5e58
Webcast Instructions
You can listen to a live audio webcast of the conference call by visiting the “Webcast Link” above or the "Events & Presentations" section of the Company's Investor Relations website at https://investors.rigetti.com/. A replay of the conference call will be available at the same locations following the conclusion of the call for one year.
Live Call Participant Instructions
To participate in the live call, you must register using the “Live Call Participant Link” above. Once registered, you will receive dial-in numbers and a unique PIN number. When you dial in, you will input your PIN and be routed into the call. If you register and forget your PIN, or lose the registration confirmation email, simply re-register to receive a new PIN.
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 1,000 times faster than alternative modalities such as trapped-ion and 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/.
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%.
Image Source: Zacks Investment Research
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.
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.
Rigetti Computing, Inc. (NASDAQ:RGTI – Get Free Report) has been given an average rating of “Moderate Buy” by the twelve analysts that are covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and seven have given a buy recommendation to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $32.00.
Several equities research analysts recently commented on the stock. Wall Street Zen downgraded shares of Rigetti Computing from a “hold” rating to a “sell” rating in a research report on Sunday, July 12th. Needham & Company LLC reiterated a “buy” rating and set a $31.00 price objective on shares of Rigetti Computing in a research report on Tuesday, May 12th. Northland Securities assumed coverage on shares of Rigetti Computing in a research report on Monday, April 20th. They set a “market perform” rating and a $20.00 price objective on the stock. Mizuho cut their target price on shares of Rigetti Computing from $33.00 to $27.00 and set an “outperform” rating on the stock in a research note on Tuesday, May 12th. Finally, Weiss Ratings restated a “sell (e+)” rating on shares of Rigetti Computing in a report on Tuesday, June 2nd.
Read Our Latest Research Report on RGTI
Insider Activity In related news, CTO David Rivas sold 499,328 shares of the company’s stock in a transaction on Friday, May 29th. The stock was sold at an average price of $25.40, for a total transaction of $12,682,931.20. Following the transaction, the chief technology officer directly owned 325,945 shares of the company’s stock, valued at approximately $8,279,003. The trade was a 60.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Ray O. Johnson sold 122,188 shares of the company’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $21.30, for a total value of $2,602,604.40. Following the transaction, the director directly owned 171,273 shares in the company, valued at $3,648,114.90. The trade was a 41.64% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 728,901 shares of company stock worth $17,546,343. 1.60% of the stock is owned by corporate insiders.
Hedge Funds Weigh In On Rigetti Computing Several institutional investors and hedge funds have recently bought and sold shares of RGTI. Heritage Wealth Advisors lifted its position in shares of Rigetti Computing by 454.3% in the fourth quarter. Heritage Wealth Advisors now owns 1,164 shares of the company’s stock worth $26,000 after purchasing an additional 954 shares in the last quarter. Larson Financial Group LLC grew its position in Rigetti Computing by 138.4% during the fourth quarter. Larson Financial Group LLC now owns 1,218 shares of the company’s stock valued at $27,000 after purchasing an additional 707 shares in the last quarter. PeakShares LLC purchased a new position in Rigetti Computing during the first quarter valued at approximately $28,000. EFG International AG acquired a new position in Rigetti Computing in the 4th quarter valued at approximately $28,000. Finally, Tsfg LLC increased its stake in Rigetti Computing by 320.5% in the 4th quarter. Tsfg LLC now owns 1,312 shares of the company’s stock valued at $29,000 after buying an additional 1,000 shares during the period. Hedge funds and other institutional investors own 35.38% of the company’s stock.
Key Stories Impacting Rigetti Computing Here are the key news stories impacting Rigetti Computing this week:
Positive Sentiment: The average brokerage recommendation for Rigetti remains equivalent to a Buy, and analysts’ 12-month price targets still imply substantial upside from current levels. Brokers Suggest Investing in Rigetti Computing (RGTI): Read This Before Placing a Bet Positive Sentiment: Recent commentary continues to highlight Rigetti as a notable quantum computing name, keeping the stock on investors’ radar. 2 Quantum Stocks That Could Challenge IonQ’s Leadership (RGTI) Neutral Sentiment: Analyst-focused articles questioned how useful brokerage ratings are for judging the stock, but did not point to a new company-specific catalyst. Brokers Suggest Investing in Rigetti Computing (RGTI): Read This Before Placing a Bet Negative Sentiment: Rigetti has fallen more than 21% over the past month as investors worry about share dilution and extremely rich valuation multiples. Rigetti Computing (RGTI) Declining on Valuation Concerns, Street Remains a Buy Rating Negative Sentiment: The latest trading-day coverage says RGTI fell more than the broader market, reinforcing the view that valuation concerns are weighing on the shares. Why Rigetti Computing, Inc. (RGTI) Dipped More Than Broader Market Today Rigetti Computing Trading Down 7.5% NASDAQ RGTI opened at $14.10 on Friday. Rigetti Computing has a 1 year low of $12.53 and a 1 year high of $58.15. The company has a market cap of $4.69 billion, a PE ratio of -16.21 and a beta of 1.95. The stock’s 50-day moving average price is $20.18 and its two-hundred day moving average price is $19.02.
Rigetti Computing (NASDAQ:RGTI – Get Free Report) last announced its earnings results on Monday, May 11th. The company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.05) by $0.01. The company had revenue of $4.40 million during the quarter, compared to analysts’ expectations of $4.09 million. Rigetti Computing had a negative net margin of 2,789.71% and a negative return on equity of 10.40%. The business’s revenue for the quarter was up 198.9% on a year-over-year basis. During the same period last year, the company posted ($0.05) earnings per share. Research analysts forecast that Rigetti Computing will post -0.22 EPS for the current fiscal year.
Rigetti Computing Company Profile (Get Free Report)
Rigetti Computing is a pioneering quantum computing company that designs and manufactures superconducting quantum processors alongside a complementary software stack. Founded in 2013 by CEO Chad Rigetti, the company has developed end-to-end quantum systems—from cryogenic hardware to control electronics—to advance the performance and scalability of quantum machines.
At the core of Rigetti’s offering is its Quantum Cloud Services (QCS) platform, which enables developers and enterprises to access quantum processing units (QPUs) and hybrid quantum-classical workflows via the cloud.
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Rigetti (RGTI 7.54%) is building a risky but fascinating quantum hardware story. Its U.S.-based Fab-1 facility, government-linked research, and superconducting quantum platform could matter more if America treats domestic quantum capability as strategic infrastructure.
Stock prices used were the market prices of July 7, 2026. The video was published on July 16, 2026
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In the latest trading session, Rigetti Computing, Inc. (RGTI - Free Report) closed at $14.11, marking a -7.48% move from the previous day. This change lagged the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 1.47%.
Shares of the company witnessed a loss of 24.67% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.99%, and the S&P 500's gain of 0.53%.
The investment community will be paying close attention to the earnings performance of Rigetti Computing, Inc. in its upcoming release. On that day, Rigetti Computing, Inc. is projected to report earnings of -$0.03 per share, which would represent year-over-year growth of 40%. In the meantime, our current consensus estimate forecasts the revenue to be $4.91 million, indicating a 173% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.18 per share and a revenue of $25.32 million, signifying shifts of +71.88% and +257.28%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Rigetti Computing, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Rigetti Computing, Inc. holds a Zacks Rank of #3 (Hold).
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Rigetti Computing, Inc. (RGTI - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Rigetti Computing currently has an average brokerage recommendation (ABR) of 1.75, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.75 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, seven are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 58.3% and 8.3% of all recommendations.
Brokerage Recommendation Trends for RGTI
Check price target & stock forecast for Rigetti Computing here>>>
While the ABR calls for buying Rigetti Computing, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is RGTI Worth Investing In?Looking at the earnings estimate revisions for Rigetti Computing, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at -$0.18.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Rigetti Computing. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Rigetti Computing.
Rigetti Computing, Inc. (RGTI - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned -32.3%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Internet - Software industry, which Rigetti Computing falls in, has gained 10.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Rigetti Computing is expected to post a loss of $0.03 per share, indicating a change of +40% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of -$0.18 points to a change of +71.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $0.18 indicates a change of +0.9% from what Rigetti Computing is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Rigetti Computing is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For Rigetti Computing, the consensus sales estimate for the current quarter of $4.91 million indicates a year-over-year change of +173%. For the current and next fiscal years, $25.32 million and $52.04 million estimates indicate +257.3% and +105.5% changes, respectively.
Last Reported Results and Surprise HistoryRigetti Computing reported revenues of $4.4 million in the last reported quarter, representing a year-over-year change of +199.3%. EPS of -$0.04 for the same period compares with -$0.08 a year ago.
Compared to the Zacks Consensus Estimate of $3.24 million, the reported revenues represent a surprise of +35.59%. The EPS surprise was +20%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Rigetti Computing is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Rigetti Computing. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
We once looked forward to Y2K. Now, it's Y2.3K (about 2030), also known as Quantum Advantage. That's when we expect quantum computers, like the ones Rigetti Computing (RGTI) is working on, to really be ready for prime time. Different companies are pursuing different roadmaps to get there. They're all working to maximize fidelity (accuracy) and also maximize speed, which makes fidelity harder to achieve. Within quantum, Rigetti's superconducting protocol makes it the group's speed demon. But it's behind on fidelity, at 91%. The near-term goal is 99.5%, and ultimately, it's aiming at 99.9%.
Key Takeaways Rigetti pairs its Fab-1 chip facility with a modular architecture aimed at scaling quantum systems.A 108-qubit C-DAC contract signals rising demand for dedicated quantum infrastructure.Shares are down 25.4% YTD, while 2026 earnings estimates imply a 71.9% year-over-year improvement. Artificial intelligence did not become a transformative technology overnight. While advances in algorithms were important, widespread adoption accelerated only after the underlying hardware ecosystem matured. Quantum computing could be entering a similar phase, with the focus gradually shifting from scientific breakthroughs to building the infrastructure needed for commercial adoption. That trend could create opportunities for companies like Rigetti Computing (RGTI - Free Report) , which is investing in manufacturing capabilities and scalable hardware architecture alongside advances in quantum performance.
Rigetti differentiates itself through its vertically integrated approach. The company owns and operates Fab-1, a dedicated quantum chip fabrication facility that provides greater control over manufacturing and product development. Its modular architecture is designed to support larger quantum systems by connecting multiple chips, potentially offering a more scalable path than relying solely on increasingly complex monolithic processors. At the same time, commercial momentum appears to be improving.
Rigetti recently secured a contract to deliver a 108-qubit quantum computer to India's Centre for Development of Advanced Computing (C-DAC), highlighting growing demand from governments and research institutions for dedicated quantum infrastructure. While the company remains in the early stages of commercialization and execution risks persist, its strategy suggests Rigetti is positioning itself not just as a quantum hardware developer but as a provider of the infrastructure that could support the industry's long-term growth.
Peers UpdatesQuantum Computing Inc. (QUBT - Free Report) , or QCi, recently completed its acquisition of NHanced Semiconductors in a deal valued at $73.1 million in cash and stock, with potential additional milestone payments of up to $72 million. The transaction expands QCi's semiconductor fabrication and advanced packaging capabilities, supporting the company's transition from research and prototyping to scalable commercial manufacturing. The acquisition also adds specialized engineering expertise, strengthening QCi's ability to develop and produce its photonic quantum technologies at scale.
IonQ (IONQ - Free Report) recently unveiled Clavis XG Multiplex, a new addition to its Clavis XG Quantum Key Distribution portfolio, designed to make quantum security even more practical and deployable across metropolitan fiber networks. The Clavis XG product line stands out for its enterprise-grade network integration, offering benefits in form factor and maintenance to configuration and management. IonQ also recently opened a new laboratory suite in Boulder, CO, to support quantum computing R&D and semiconductor chip testing facilities.
Rigetti’s Price Performance, Valuation and Estimates
Shares of RGTI have lost 25.4% in the year-to-date period compared with the industry’s decline of 4.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 9.42, 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 #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest trading session, Rigetti Computing, Inc. (RGTI - Free Report) closed at $16.54, marking a -2.65% move from the previous day. This change lagged the S&P 500's 0.42% gain on the day. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, added 0.29%.
Prior to today's trading, shares of the company had lost 17.64% lagged the Computer and Technology sector's gain of 0.85% and the S&P 500's gain of 2.2%.
Analysts and investors alike will be keeping a close eye on the performance of Rigetti Computing, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of -$0.03, up 40% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.91 million, reflecting a 173% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.18 per share and revenue of $25.32 million. These totals would mark changes of +71.88% and +257.28%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Rigetti Computing, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Rigetti Computing, Inc. holds a Zacks Rank of #4 (Sell).
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow RGTI in the coming trading sessions, be sure to utilize Zacks.com.
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.
Image source: Getty Images.
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.
Rigetti Computing, Inc. (RGTI - Free Report) ended the recent trading session at $16.92, demonstrating a +2.24% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq gained 0.2%.
The company's stock has dropped by 15.95% in the past month, falling short of the Computer and Technology sector's loss of 1.22% and the S&P 500's gain of 1.64%.
The investment community will be closely monitoring the performance of Rigetti Computing, Inc. in its forthcoming earnings report. On that day, Rigetti Computing, Inc. is projected to report earnings of -$0.03 per share, which would represent year-over-year growth of 40%. Meanwhile, the latest consensus estimate predicts the revenue to be $4.91 million, indicating a 173% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.18 per share and revenue of $25.32 million, indicating changes of +71.88% and +257.28%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rigetti Computing, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. As of now, Rigetti Computing, Inc. holds a Zacks Rank of #4 (Sell).
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 95, positioning it in the top 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Key Takeaways Rigetti's Cepheus-1 is now available through its cloud, Amazon Braket, Azure Quantum and qBraid.RGTI is growing on-premise adoption through Novera QPU sales, research deals and government contracts.Rigetti has roughly $569M in cash and expects 2026 earnings to improve 71.9% from a year ago. Rigetti Computing’s (RGTI - Free Report) first-quarter 2026 results suggest that the company is quietly shifting the conversation from building better quantum hardware to making it easier for customers to use it. The company's new 108-qubit Cepheus-1 system is now generally available through Rigetti Quantum Cloud Services, Amazon Braket, Microsoft Azure Quantum and qBraid, significantly expanding customer access.
Management believes the 108-qubit Cepheus-1 system is one of the world's most powerful commercially available gate-based quantum computers and the largest modular quantum system on the market. At the same time, Rigetti continues to grow its on-premise business through Novera QPU sales and government contracts, creating multiple channels for adoption rather than relying solely on cloud usage.
From an investor's perspective, the expanding distribution ecosystem could prove as important as future technology milestones. By placing its systems across leading cloud platforms while securing on-premise deployments with research institutions and national laboratories, Rigetti is increasing customer engagement well before quantum computing reaches widespread commercial adoption.
Management expects commercial interest from industries such as financial services, logistics and materials science to accelerate as system fidelity improves and the company advances toward its quantum advantage target over the next three years. Backed by a debt-free balance sheet and roughly $569 million in cash, Rigetti appears well-positioned to continue investing aggressively in scaling its technology while broadening its customer footprint.
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 unveiled Clavis XG Multiplex, a new addition to its Clavis XG Quantum Key Distribution portfolio, designed to make quantum security even more practical and deployable across metropolitan fiber networks. The Clavis XG product line stands out for its enterprise-grade network integration, offering benefits in form factor and maintenance to configuration and management. IonQ also recently opened a new laboratory suite in Boulder, CO, to support quantum computing R&D and semiconductor chip testing facilities.
Rigetti’s Price Performance, Valuation and EstimatesShares of RGTI have lost 19% in the year-to-date period compared with the industry’s decline of 9.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 10.22, 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 #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rigetti Computing, Inc. (RGTI - Free Report) closed at $18.68 in the latest trading session, marking a -3.31% move from the prior day. This change lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.03%, while the tech-heavy Nasdaq lost 0.66%.
The company's stock has dropped by 28.13% in the past month, falling short of the Computer and Technology sector's loss of 2.58% and the S&P 500's loss of 1.21%.
Investors will be eagerly watching for the performance of Rigetti Computing, Inc. in its upcoming earnings disclosure. The company is predicted to post an EPS of -$0.03, indicating a 40% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $4.91 million, indicating a 173% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.18 per share and a revenue of $25.32 million, signifying shifts of +71.88% and +257.28%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rigetti Computing, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Rigetti Computing, Inc. possesses a Zacks Rank of #4 (Sell).
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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%.
Image Source: Zacks Investment Research
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.
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 #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rigetti Computing, Inc. (RGTI - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this company have returned -24.2%, compared to the Zacks S&P 500 composite's -2.9% change. During this period, the Zacks Internet - Software industry, which Rigetti Computing falls in, has lost 8.7%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Rigetti Computing is expected to post a loss of $0.05 per share for the current quarter, representing a year-over-year change of -10%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of -$0.22 for the current fiscal year indicates a year-over-year change of -26.5%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.19 indicates a change of +11.6% from what Rigetti Computing is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Rigetti Computing is rated Zacks Rank #4 (Sell).
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Rigetti Computing, the consensus sales estimate for the current quarter of $4.91 million indicates a year-over-year change of +173%. For the current and next fiscal years, $25.32 million and $52.04 million estimates indicate +257.3% and +105.5% changes, respectively.
Last Reported Results and Surprise HistoryRigetti Computing reported revenues of $4.4 million in the last reported quarter, representing a year-over-year change of +199.3%. EPS of -$0.04 for the same period compares with -$0.08 a year ago.
Compared to the Zacks Consensus Estimate of $3.24 million, the reported revenues represent a surprise of +35.59%. The EPS surprise was +20%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Rigetti Computing is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Rigetti Computing. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
RGTI reclaimed a level with significant put open interest
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Rigetti Computing Inc (NASDAQ:RGTI) briefly dipped below the $20 level before reclaiming it and closing back above its April and May closing highs. The $20 level also carries significant put open interest (OI), which could be supportive in the near term.
Short covering could provide an additional tailwind. Short interest has increased 23.2% over the last month and now represents 19.02% of the stock’s available float.
The stock also tested the lower boundary of a recent uptrend while finding support at its 50-day moving average, a signal that has historically been associated with positive monthly returns.
Our recommended call has a leverage ratio of 3.0 and will double on a 36.7% rise in the underlying equity.
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Rigetti Computing, Inc. (RGTI - Free Report) ended the recent trading session at $18.41, demonstrating a -5.73% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily loss of 0.01%. At the same time, the Dow added 0.14%, and the tech-heavy Nasdaq lost 0.46%.
The company's shares have seen a decrease of 20.67% over the last month, not keeping up with the Computer and Technology sector's loss of 2.57% and the S&P 500's loss of 1.4%.
Market participants will be closely following the financial results of Rigetti Computing, Inc. in its upcoming release. In that report, analysts expect Rigetti Computing, Inc. to post earnings of -$0.03 per share. This would mark year-over-year growth of 40%. At the same time, our most recent consensus estimate is projecting a revenue of $4.91 million, reflecting a 173% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.18 per share and revenue of $25.32 million. These totals would mark changes of +71.88% and +257.28%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Rigetti Computing, Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Rigetti Computing, Inc. is holding a Zacks Rank of #4 (Sell) right now.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 89, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Rigetti Computing, Inc. (RGTI - Free Report) closed at $19.54 in the latest trading session, marking a -8.2% move from the prior day. This change lagged the S&P 500's 0.1% loss on the day. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.43%.
The stock of company has fallen by 15.1% in the past month, lagging the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.34%.
The upcoming earnings release of Rigetti Computing, Inc. will be of great interest to investors. The company is predicted to post an EPS of -$0.03, indicating a 40% growth compared to the equivalent quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.91 million, reflecting a 173% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.18 per share and a revenue of $25.32 million, representing changes of +71.88% and +257.28%, respectively, from the prior year.
Any recent changes to analyst estimates for Rigetti Computing, Inc. should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Rigetti Computing, Inc. is holding a Zacks Rank of #4 (Sell) right now.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Rigetti Computing (RGTI 8.22%) stock, which managed to hold more or less steady earlier in the week, suddenly stumbled and fell 9.2% through 2:55 p.m. ET Wednesday.
Helping to support the stock price earlier was a Trump Administration order promoting the development of quantum computing, which sparked a wave of call option buying yesterday -- as many as 10.4 calls purchased for every put, according to StreetInsider.com -- indicating traders were heavily bullish on the stock.
Image source: Getty Images.
Some good news for Rigetti? As NBC reports, President Trump on Monday signed an order "to build a powerful quantum computer for scientific research," aiming to have the device operational before he leaves office in 2029.
Further out, the President called for protecting government computer systems from cyberattacks made more powerful by the use of quantum computers, by using other quantum computers to build quantum-resistant cryptography by 2030 or 2031.
And I must say, all of this sounds pretty bullish for a leading quantum computing stock like Rigetti, and a good reason for investors to be bidding it up yesterday.
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No bad news for Rigetti stock The other good news is that there's no specific bad news driving today's sell-off. It's just that all the call-buying yesterday may have gone overboard. The lack of further good news like Monday's may have prompted day traders to cash out today, sparking a momentum crash.
Volatility, of course, is the name of the game in quantum computing stocks, where far-in-the-future advancements (2028? 2030? 2031?) run into analyst forecasts of continued losses for the companies supposed to make the advancements. Analysts polled by S&P Global Market Intelligence warn that it could be 2031 or later before Rigetti earns its first profit.
Even with government support, Rigetti stock remains a risky bet.
Rich Smith 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.
Last month, the U.S. government announced plans to acquire equity stakes in nine different quantum computing companies, providing $2 billion in total funding to help America build a leadership position in this important industry. Rigetti Computing (RGTI 7.10%) will receive a $100 million investment over three years, and its stock has jumped by 20% since the news broke.
Quantum computers can use a concept called superposition to simulate multiple solutions to a given problem at once, so they are more efficient at processing specific workloads compared to traditional computers, especially in areas like science and cryptography. Rigetti makes some of the industry's best quantum systems, but they still make far too many errors to solve most real-world problems.
While the U.S. government's backing is great news, Rigetti still generates a very small amount of revenue relative to its market capitalization. Here's why I predict its elevated valuation will lead to a 50% (or more) decline in its stock price during the second half of this year.
Image source: Getty Images.
It could be decades before quantum computers are truly useful Rigetti is uniquely positioned to lead the quantum industry because it has built its own supply chain, which means it can bring new computers to market much faster than its competitors. It operates its own fabrication facility, developed its own quantum programming language called Quil, and it has also built a cloud platform where it rents quantum computing capacity to other businesses for a fee.
Rigetti's flagship Cepheus-1-108Q quantum computer is the industry's largest multichip system. With 108 qubits, it delivers three times the scale of the company's previous Cepheus-1-36Q system, while boasting a median single-qubit gate fidelity of 99.9%. That means it makes just one error per every 1,000 quantum operations. But its two-qubit gate fidelity is 99.1%, implying nine errors per 1,000 operations, so it's still impractical for solving many real-world problems.
Making multiple qubits work together in harmony is one of the biggest challenges in quantum computing, because they are highly sensitive to noise and interference. Rigetti believes it can upgrade Cepheus-1-108Q to achieve a two-qubit fidelity of 99.5% this year, but the company says a system with a two-qubit fidelity of 99.9% could be three years away.
According to an estimate by Ark Investment Management, it could take somewhere between 20 and 40 years before quantum systems are accurate enough to disrupt areas like cryptography, so even as one of the industry leaders, Rigetti still has a long way to go.
Inconsistent revenue growth and steep losses Rigetti's revenue soared by 198% year over year in the first quarter to reach $4.4 million. The company intends to deliver an $8.4 million order for Cepheus-1-108Q to India's Center for Development of Advanced Computing later this year, so that alone would result in revenue growth for 2026 relative to the prior year.
However, Rigetti's revenue declined in 2025, so there isn't a sustained upward trend just yet. This is a common trait of companies in the start-up phase, but that only makes Rigetti's $7 billion market capitalization all the more problematic in my opinion (more on that in a moment).
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The company's bottom line is the main concern right now because it isn't generating anywhere near enough sales to cover all of its costs. Its operating expenses totaled $27.3 million in the first quarter, resulting in a generally accepted accounting principles (GAAP) net loss of $20.5 million. That followed a $216 million net loss in 2025.
Based on these numbers, the government's $100 million investment over three years won't stretch very far. Fortunately, Rigetti had $569 million in cash, equivalents, and short-term investments on hand as of March 31, so it can sustain its losses for now. But I think a capital raise is likely within the next couple of years, which would dilute existing shareholders and hurt their future returns.
Rigetti's sky-high valuation opens the door to downside Elon Musk's space transportation and satellite internet company, Space Exploration Technologies (SPCX +0.69%), went public last Friday, and its stock currently trades at a price-to-sales (P/S) ratio of 137.8. It's wildly expensive when you consider the Nasdaq-100 index trades at a P/S ratio of just 6.9.
But brace yourself, because Rigetti's P/S ratio is currently an eye-popping 663. Even if we value Rigetti based on Wall Street's consensus 2026 revenue estimate of $23.6 million (provided by Yahoo! Finance), its forward P/S ratio is still almost 300.
RGTI PS Ratio data by YCharts
That means even if Rigetti's stock plummeted by 50% in the second half of 2026, it would still be more expensive than SpaceX is today. I think a loss of that magnitude is entirely possible given the company's lumpy revenue growth and steep losses. In fact, if it doesn't hit Wall Street's revenue target, its stock might fall even more sharply.
In summary, despite the long-term potential of quantum computing, Rigetti stock probably isn't a great buy at the current price.
In October 2025, quantum computing company Rigetti Computing (RGTI 7.10%) skyrocketed to an all-time high of $58 per share. Since then, the stock has cooled considerably and is trading around $21 per share as of this writing. The pullback raises an obvious question for investors. Is Rigetti a buy right now, or has the hype surrounding quantum computing moved on for good?
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Quantum computing ambitions backed by the government For quantum computing bulls, Rigetti is one of the most exciting enterprises in the space. That was further reinforced in May, when the U.S. government announced it would provide Rigetti with up to $100 million in additional funding as part of a broader quantum computing initiative.
There could be a lot of strings attached to that $100 million, but overall, it is a positive development for the industry as a whole.
Image source: The Motley Fool.
The company's financials paint a picture of growth, but profitability remains a distant hope. In the first quarter of 2026, Rigetti's revenue tripled year over year to $4.4 million, thanks to research deals and sales of experimental systems, but the operating losses piled up, too.
Rigetti has solid liquidity, with more than $400 million in cash and equivalents on the balance sheet. This means the company has enough runway to continue developing while seeking commercial applicability.
Rigetti investors should be cautiously optimistic Rigetti's stock is down over 4% in 2026, but is still up nearly 85% in the past 12 months. The stock is volatile with a beta of 1.9. Analysts are generally optimistic, with an average price target of $29, significantly higher than the stock's price as of June 17.
The long-term success of Rigetti rests on the commercial use cases for quantum computing. Investors are still years away from knowing the answer to that question, but for the true believers in its power, Rigetti seems positioned to be one of the winners.
The competition in quantum computing is fierce as well. Pure-play quantum companies such as IonQ, D-Wave, and the newly publicly traded Quantinuum are in similar positions. Tech giants such as Alphabet's Google and IBM have nearly unlimited resources to allocate to quantum ambitions and could pose a real threat.
With government backing and plenty of cash, the stock is speculative but promising. If you're considering an investment in Rigetti, you'll need to hold the stock through the early 2030s to see if the company can generate real revenue and find profitability. Until then, the stock rises and falls on sentiment, and you'll likely be in for a wild roller coaster ride.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, International Business Machines, and IonQ. The Motley Fool has a disclosure policy.
Rigetti Computing, Inc. (RGTI - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.
Over the past month, shares of this company have returned -3.1%, compared to the Zacks S&P 500 composite's +1.4% change. During this period, the Zacks Internet - Software industry, which Rigetti Computing falls in, has lost 0.7%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Rigetti Computing is expected to post a loss of $0.03 per share, indicating a change of +40% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
For the current fiscal year, the consensus earnings estimate of -$0.18 points to a change of +71.9% from the prior year. Over the last 30 days, this estimate has remained unchanged.
For the next fiscal year, the consensus earnings estimate of $0.18 indicates a change of +0.9% from what Rigetti Computing is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Rigetti Computing is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Rigetti Computing, the consensus sales estimate of $4.91 million for the current quarter points to a year-over-year change of +173%. The $25.32 million and $52.04 million estimates for the current and next fiscal years indicate changes of +257.3% and +105.5%, respectively.
Last Reported Results and Surprise HistoryRigetti Computing reported revenues of $4.4 million in the last reported quarter, representing a year-over-year change of +199.3%. EPS of -$0.04 for the same period compares with -$0.08 a year ago.
Compared to the Zacks Consensus Estimate of $3.24 million, the reported revenues represent a surprise of +35.59%. The EPS surprise was +20%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Rigetti Computing is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Rigetti Computing. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Last month, the Department of Commerce announced plans to invest up to $2 billion across nine quantum computing businesses over the next three years. Among these companies is Rigetti Computing (RGTI 7.10%), which is set to receive $100 million in CHIPS Act funding tied to certain research and development (R&D) milestones for its superconducting quantum systems.
This gives a level of credibility to Rigetti's technology and is a strategic alignment with national priorities related to artificial intelligence (AI).
Smart investors are asking whether this news alone makes the stock an immediate buy. A closer examination of the funding's purpose, its potential applications, and Rigetti's current valuation reveals a more nuanced picture.
Image source: Getty Images.
Why is the government investing in quantum computing stocks? The Commerce Department's $100 million commitment to Rigetti is notable because it forms part of a broader effort to secure leadership in quantum AI technologies amid global competition. Unlike traditional grants, the underlying structure ties the funding to specific R&D milestones while giving the U.S. government an equity stake in Rigetti.
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For the company, the capital arrives at an important moment since scaling up quantum processors increasingly demands hefty investment in hardware, error mitigation, and integration with classic computing systems. The CHIPS Act funding should help reduce reliance on dilutive equity raises from public markets.
Moreover, specifically choosing Rigetti among such a small cohort of recipients signals confidence from policymakers who view quantum computing as essential for economic competitiveness and security applications.
How will CHIPS Act funding help Rigetti? Additional government funding could accelerate Rigetti's progress toward building fault-tolerant quantum architectures at scale. A successful outcome could enable hybrid quantum-classic solutions for crucial applications in drug discovery, financial services, energy modeling, and cryptography.
Beyond research, partnering with the government could strengthen the company's position in public sector and enterprise contracts, fostering ecosystem development around its full-stack approach. With that said, quantum computing remains in a pre-commercial phase where meaningful revenue growth is still years away.
Rigetti's financial profile paints a high-risk, high-reward picture. Currently, the company has a market capitalization of roughly $7 billion with trailing-12-month sales of only $10 million. Under these parameters, the stock trades at a price-to-sales ratio (P/S) of nearly 700. Simply put, this multiple surpasses standard benchmarks even for high-growth technology companies in disruptive markets.
RGTI PS Ratio data by YCharts.
While financial support from the government adds a non-dilutive element to Rigetti's balance sheet, it does not alter the reality of the company's ongoing operating losses amid a modest sales base and a business model with heavy capital expenditures.
All told, the $100 million commitment from the federal government provides important strategic support and capital for the company's road map. At best, this funding potentially accelerates breakthroughs in scalable quantum hardware.
However, Rigetti's abnormally high valuation and early-stage fundamentals indicate that the funding alone does not justify buying the stock right now.
Key Takeaways Rigetti says dilution refrigeration is mature and can support 1,000-qubit and larger systems.Management cites 50-70 nanosecond gate speeds, about 1,000 times faster than some rivals.Rigetti says its speed edge and chiplet scaling could help reach quantum advantage in about three years. The sharp focus of Rigetti Computing's (RGTI - Free Report) first-quarter 2026 earnings call was not merely on its newly launched 108-qubit Cepheus system but also on addressing a long-standing concern surrounding superconducting quantum computing — the dependence on dilution refrigeration. Management argued that while superconducting systems require cooling to around 10 millikelvin, dilution refrigeration is a mature technology that has existed for decades and is now being commercialized for quantum applications.
The company emphasized that multiple vendors already supply these systems and that existing technology roadmaps support scaling to 1,000-qubit and even tens-of-thousands-of-qubit systems, suggesting that cooling infrastructure is unlikely to constrain its growth trajectory.
More importantly, Rigetti contends that the tradeoff is worthwhile because superconducting quantum computing offers substantial advantages in speed and scalability. Management noted that its systems currently achieve gate speeds of roughly 50-70 nanoseconds, making them approximately 1,000 times faster than certain competing modalities, such as trapped-ion and neutral-atom systems.
The company believes this speed advantage, coupled with the chiplet-based scaling approach, positions it favorably to reach quantum advantage in roughly three years. By directly challenging the notion that refrigeration requirements could hamper commercialization, Rigetti is attempting to strengthen investor confidence in its superconducting roadmap and reinforce the long-term viability of the technology platform.
Peers UpdatesD-Wave Quantum (QBTS - Free Report) also recently announced that it has signed an LOI with the U.S. Department of Commerce for $100 million in proposed funding under the CHIPS and Science Act to accelerate the development and scaling of the annealing and gate-model quantum computing technologies. The funding, which would be accompanied by a $100 million equity stake for the U.S. government, is expected to support quantum system development at D-Wave’s upcoming Boca Raton, FL, facility and its existing R&D centers.
The initiative could help accelerate the delivery of advanced quantum systems, including a 100,000-qubit annealing computer and a 10,000-qubit gate-model system, while strengthening the company’s position in the growing quantum computing market and supporting broader U.S. technology leadership objectives.
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 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 Estimates
Shares of RGTI have lost 3.6% in the year-to-date period compared with the industry’s decline of 13.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 12.16, 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 70.3% improvement from the year-ago period.
Image Source: Zacks Investment Research
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 IonQ posted strong revenue growth, raised 2026 guidance and expanded its quantum technology capabilities.RGTI nearly tripled revenues, launched a 108-qubit system and ended the quarter with no debt. IonQ and RGTI face pressure from elevated valuations, higher rates and delayed profitability. IonQ (IONQ - Free Report) and Rigetti Computing (RGTI - Free Report) remain among the leading names in the quantum computing industry, but that has not insulated the stocks from recent selling pressure. With interest rates expected to stay elevated and profitability still years away, investors have turned cautious, sending IonQ shares down 11.1% and Rigetti shares down 19.2% over the past month.
The recent pullback reflects changing investor sentiment rather than a deterioration in business fundamentals. Both companies continue to execute on their technology roadmaps and expand commercial traction.
One-Month Price Performance
Image Source: Zacks Investment Research
Valuation remains another concern. Even after the recent correction, both stocks continue to trade at a substantial premium to the broader technology sector. IonQ currently trades at about 64.2x forward 12-month sales, while Rigetti trades at roughly 186.9x, compared with the Computer and Technology sector average of 6.77x. Such elevated multiples leave little room for execution missteps and make the stocks particularly vulnerable during periods of rising interest rates.
Image Source: Zacks Investment Research
Strong Execution ContinuesIonQ's first-quarter 2026 revenues of $64.7 million increased more than eightfold year over year. The company raised its full-year revenue outlook to $260-$270 million and expanded its remaining performance obligations to $470 million. Management noted about accelerating demand for quantum computing systems, progress on its 256-qubit platform, expanding quantum networking capabilities and continued momentum across government contracts and enterprise customers. IonQ also completed its acquisition of SkyWater, adding domestic semiconductor manufacturing capabilities.
Rigetti likewise reported encouraging operational progress. The company launched its 108-qubit Cepheus-1 system across major cloud platforms, nearly tripled revenues year over year to $4.4 million, continued expanding deployments of its Novera quantum processing units and systems and reiterated its roadmap to achieve quantum advantage in roughly three years. It also ended the quarter with approximately $569 million in cash, cash equivalents and investments and no debt, providing ample financial flexibility to support continued research and development.
Macro Headwinds Affect Strong ExecutionThe pressure is largely coming from outside the companies. The latest macroeconomic data point to a less supportive backdrop for speculative growth stocks. Going by BLS’ May 2026 report, the Consumer Price Index (CPI) rose 4.2% year over year in May, marking the fastest pace of inflation since April 2023, while core CPI increased 2.9%.
Meanwhile, the unemployment rate held steady at 4.3% in May and nonfarm payrolls increased by 172,000, underscoring a still-resilient labor market. In response, the Federal Reserve kept its benchmark interest rate unchanged at 3.50%-3.75% at its June 17 meeting and signaled a more hawkish outlook as inflation remains above its 2% target. Higher Treasury yields and expectations that rates could stay elevated for longer have reduced investor appetite for long-duration growth stocks.
Companies like IonQ and Rigetti, whose valuations depend heavily on earnings expected years into the future, are particularly sensitive to higher discount rates and changing monetary policy expectations.
Bottom LineIonQ and Rigetti remain well-positioned to capitalize on the long-term growth of the quantum computing industry, supported by technological advancements, expanding commercial partnerships and solid balance sheets. However, their lofty valuations, lack of near-term profitability and an unfavorable macro environment could continue to weigh on their shares in the coming months.
Given the limited near-term upside and elevated risks, both stocks currently carry a Zacks Rank #4 (Sell). Investors may consider trimming their holdings or taking partial profits while awaiting a more attractive entry point as commercialization and earnings visibility improve.
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
IONQ expects record earnings growth of 42.9% in 2026. Revenues are projected to surge 101.9% in 2026.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
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.
Key Takeaways Rigetti shares fell nearly 9% as Quantinuum's $15B Nasdaq debut drew investor attention.QNT's IPO has set a new valuation benchmark for quantum computing peers.RGTI reported $4.4M in first-quarter revenues, up nearly 199%, with $569M in cash and no debt. Rigetti Computing (RGTI - Free Report) shares tumbled nearly 9% on Tuesday as investors turned their attention to Quantinuum's (QNT - Free Report) blockbuster Nasdaq debut. The quantum computing company raised about $1.68 billion in an upsized initial public offering (IPO) and debuted with an approximate valuation of $15 billion, instantly becoming the largest publicly traded pure-play quantum computing company. The listing has effectively reset valuation expectations across the quantum sector and introduced a new benchmark for investors assessing competitive positioning among companies such as Rigetti, IonQ (IONQ - Free Report) and D-Wave Quantum (QBTS - Free Report) .
However, per a Reuters article, Quantinuum's lofty valuation comes with its own set of questions. Japan's RIKEN research institute accounted for roughly 60% of the QNT's 2025 total revenues of about $30.9 million, highlighting the industry's continued reliance on government and research spending. QNT also posted a net loss of nearly $193 million in 2025. As a result, investors may increasingly compare the growth trajectories, technological roadmaps and commercialization prospects of publicly traded quantum companies rather than simply rewarding pure quantum exposure. For Rigetti, this comparison could cut both ways. Quantinuum's trapped-ion architecture is widely viewed as a leader in fidelity and error correction, but Rigetti continues to emphasize the speed and scalability advantages of its superconducting, chiplet-based approach.
Rigetti's recent execution has been improving. The company delivered first-quarter 2026 revenues of $4.4 million, up nearly 199% year over year, driven by Novera QPU deliveries and government projects, while ending the quarter with approximately $569 million in cash and no debt. Management also highlighted the general availability of its 108-qubit Cepheus-1 system across Rigetti Quantum Cloud Services, Amazon Braket, Microsoft Azure Quantum and qBraid and reiterated its goal of reaching quantum advantage within roughly three years through a 1,000-plus-qubit, high-fidelity architecture.
Thus, the selloff in Rigetti appears to reflect capital rotation and a broader reassessment of relative value rather than any deterioration in the company's fundamentals.
Peers UpdatesThe ripple effects of Quantinuum's blockbuster IPO extended beyond Rigetti, with IONQ and QBTS also tumbling in Tuesday's trading session. The selloff suggests that investors are reassessing valuations across the quantum computing space following the emergence of a new $15 billion pure-play competitor.
Quantinuum's listing has not only diverted speculative capital toward the newly public company but also intensified comparisons of technological capabilities, commercialization strategies and paths to profitability among quantum players. For IonQ and D-Wave, whose shares have rallied sharply over the past year, the IPO may have triggered profit-taking and a broader sector-wide repricing as investors recalibrate expectations for the rapidly evolving quantum computing market.
Rigetti’s Price Performance, Valuation and EstimatesShares of RGTI have lost 6.9% in the year-to-date period compared with the industry’s decline of 11.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 11.75, 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 70.3% improvement from the year-ago period.
Image Source: Zacks Investment Research
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.
Rigetti Computing, Inc. (RGTI - Free Report) ended the recent trading session at $20.25, demonstrating a -1.91% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.22%. Elsewhere, the Dow lost 0.98%, while the tech-heavy Nasdaq lost 1.35%.
The stock of company has risen by 29.32% in the past month, leading the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of Rigetti Computing, Inc. in its forthcoming earnings report. The company is forecasted to report an EPS of -$0.03, showcasing a 40% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $4.91 million, indicating a 173% upward movement from the same quarter last year.
RGTI's full-year Zacks Consensus Estimates are calling for earnings of -$0.18 per share and revenue of $25.32 million. These results would represent year-over-year changes of +71.88% and +257.28%, respectively.
It is also important to note the recent changes to analyst estimates for Rigetti Computing, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Rigetti Computing, Inc. currently has a Zacks Rank of #4 (Sell).
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 86, finds itself in the top 36% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
The stock market is on a tear. Driven by renewed enthusiasm for artificial intelligence (AI), the S&P 500 index is up 6.3% over the last month, while the tech-heavy Nasdaq Composite is up a whopping 9.4%.
The run, along with a major announcement from the U.S. Commerce Department, has kicked off a rally in quantum computing stocks. As investors look for the "next AI," they're snapping up shares of companies like IonQ, D-Wave, and, of course, Rigetti Computing (RGTI +6.51%).
With the recent launch of its most powerful quantum system to date, many investors believe that Rigetti is one of the most promising quantum pure-plays around. But what about the stock? After jumping more than 50% in a month, is it still a buy? Could shares of Rigetti reach $50?
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Why Rigetti is turning heads in the quantum computing race Rigetti builds superconducting quantum computers, using the same basic approach as Alphabet's Google and IBM. This gives the company's systems a few advantages: speed and scale.
Rigetti just launched its most powerful computer to date, the 108-qubit Cepheus-1-108Q. ,
Beyond the tech itself, the company designs and builds everything in-house, from the quantum chips to the software that runs on them. If its approach delivers, Rigetti would own the entire vertical, giving it a major leg up.
As for financials, revenue nearly tripled year over year last quarter, and the company is sitting on more than $400 million in cash, double what it held a year ago.
And of course, there is the recent news: The U.S. government will provide $100 million to Rigetti as part of a larger $2 billion quantum investment package. That's a pretty big deal.
Image source: Getty Images.
The risks hiding behind Rigetti's explosive stock rally Revenue nearly tripled last quarter, rising from $1.5 million to $4.4 million. At that scale, the growth percentages don't mean much. And the company is still deeply cash-flow negative, burning $20 million in free cash flow (FCF) this quarter.
Of course, there is the valuation issue: Shares currently trade at a price-to-sales (P/S) ratio of nearly 900. The word extreme could be applied here.
Rigetti's technology is promising, no doubt, but it is still just that -- a promise. The company has a runway to keep researching for years, but that's essentially what you're buying here -- research. This is not really a true business at this point.
And as exciting as the government deal is, the $100 million in funding is essentially a grant. The money will be used to fund research and development on an unproven technology in its infancy.
Could Rigetti stock actually reach $50? So, could shares hit $50? Absolutely. In fact, they probably will. But critically, I don't think they'll stay there.
Once the current rally cools and investors start fleeing speculation, a company trading at 900 times sales with $4.4 million in quarterly revenue is going to get crushed.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Let's take a look at what these Wall Street heavyweights have to say about Rigetti Computing, Inc. (RGTI - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Rigetti Computing currently has an average brokerage recommendation (ABR) of 1.75, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 12 brokerage firms. An ABR of 1.75 approximates between Strong Buy and Buy.
Of the 12 recommendations that derive the current ABR, seven are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 58.3% and 8.3% of all recommendations.
Brokerage Recommendation Trends for RGTI
Check price target & stock forecast for Rigetti Computing here>>>
The ABR suggests buying Rigetti Computing, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is RGTI Worth Investing In?In terms of earnings estimate revisions for Rigetti Computing, the Zacks Consensus Estimate for the current year has declined 35.5% over the past month to -$0.18.
Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #4 (Sell) for Rigetti Computing. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, it could be wise to take the Buy-equivalent ABR for Rigetti Computing with a grain of salt.
Key Takeaways Rigetti signed an LOI for up to $100M in U.S. funding to advance superconducting quantum computing.Proposed funding could support R&D, ease balance-sheet pressure and speed commercialization efforts.The agreement would give the U.S. Commerce Department an equity stake tied to funding awarded. Rigetti Computing (RGTI - Free Report) recently announced that it has signed a letter of intent (LOI) with the U.S. Department of Commerce for an award of up to $100 million over three years to accelerate research and development efforts in superconducting quantum computing. The proposed funding, which falls under the CHIPS Act's Research and Development Office program, is intended to support projects aimed at overcoming key technical challenges associated with scaling quantum computers.
The agreement underscores the U.S. government's commitment to strengthening domestic leadership in next-generation technologies and positions Rigetti among a select group of companies expected to play a critical role in advancing the country's quantum computing capabilities. Under the terms of the LOI, the Department of Commerce would receive an equity stake in Rigetti tied to the amount of funding ultimately awarded.
The development represents a meaningful strategic and financial catalyst for Rigetti as it seeks to accelerate the commercialization of its quantum computing platform. The potential funding could help the company pursue ambitious R&D initiatives without placing additional pressure on its balance sheet, while speeding efforts to address scalability bottlenecks that remain a key hurdle for the broader quantum industry.
Management believes the investment will bring Rigetti closer to utility-scale quantum computing, a milestone that could unlock opportunities across national security, advanced materials research, drug discovery, financial modeling and energy applications. Beyond the capital infusion, the government's willingness to partner with Rigetti serves as a strong endorsement of the company's technology and may strengthen its competitive position as quantum computing investment and adoption continue to expand.
Peers UpdatesIonQ (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.
D-Wave Quantum (QBTS - Free Report) also recently announced that it has signed an LOI with the U.S. Department of Commerce for $100 million in proposed funding under the CHIPS and Science Act to accelerate the development and scaling of its annealing and gate-model quantum computing technologies. The funding, which would be accompanied by a $100 million equity stake for the U.S. government, is expected to support quantum system development at D-Wave’s upcoming Boca Raton, FL, facility and its existing R&D centers. The initiative could help accelerate the delivery of advanced quantum systems, including a 100,000-qubit annealing computer and a 10,000-qubit gate-model system, while strengthening the company’s position in the growing quantum computing market and supporting broader U.S. technology leadership objectives.
Rigetti Computing’s Price Performance, Valuation and EstimatesShares of RGTI have gained 15.7% in the year-to-date period against the industry’s decline of 6.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 14.59, 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 70.3% improvement from the year-ago period.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Rigetti ended Q1 FY26 with $569 million in cash, zero debt, and revenue growth of 198.9% year-over-year. Approximately $2.7-$3.0 million of the Novera QPU order appears positioned for Q2-FY26 revenue recognition. A potential $100 million CHIPS Act investment strengthens funding capacity and supports long-term quantum development efforts.
Rigetti Computing (RGTI +6.51%) stock went on a massive run in May, surging over 46%.
Shares got a boost from a marketwide rally that saw the Nasdaq Composite gain more than 8%, but better-than-expected Q1 earnings and a major announcement from the federal government both sent the stock higher.
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Federal quantum funding gives Rigetti a major boost On May 21, the U.S. Department of Commerce signed letters of intent to award $2 billion in federal grants to nine quantum computing companies under the CHIPS and Science Act. Aimed at accelerating the development of "utility-scale, fault-tolerant quantum computing," the program was seen as a major endorsement from the federal government.
Source: Getty Images
Rigetti will receive up to $100 million over three years, per a letter of intent. That's a pretty big sum for a company that generated just $4.4 million in revenue last quarter, and it helps provide a financial runway.
Shares jumped nearly 57% on the day of the announcement and the day following.
The CHIPS Act announcement was a big moment for the whole quantum industry. Rigetti was far from the only pure play stock to see a huge spike on the news.
Q1 earnings beat expectations as revenue nearly triples Earlier in the month, Rigetti released its Q1 2026 earnings. Revenue came in at $4.4 million, a nearly 200% year-over-year increase and well above analyst targets. The growth was driven by deliveries of the company's Novera quantum processing units, as well as netting some government contracts.
The company is still burning cash, however, with a free cash flow (FCF) of -$20.6M.
MetricQ1 2026Q1 2025Revenue$4.4M$1.5MEBITDA($23.3)($19.8)Cash418.3M209.1M Cepheus finally launches The company also hit an important technical milestone. Rigetti's 108-qubit Cepheus system was finally released. The company says it achieved "two-qubit gate fidelity" of roughly 99.1%, with targets of 99.5% fidelity and 150-plus qubits by year-end.
The Cepheus system had been delayed, so its successful launch was a critical win.
IBM's $10 billion quantum commitment helps boost shares Right at the end of the month, IBM added fuel to the rally by announcing plans to invest more than $10 billion in quantum computing. Over the next five years, the company plans to invest that money in R&D, manufacturing, and "ecosystem partnerships".
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy.
A $10,000 position in the Defiance Quantum ETF (NYSEARCA:QTUM) on the last trading day of 2025 was worth about $15,420 by the close on June 2, 2026, a 54.2% year-to-date move from a starting price of $109.44 to $168.76. Over the same stretch the S&P 500, as proxied by SPY, returned 11%, and the Nasdaq-100 via QQQ, the closest thing to a clean Magnificent 7 wrapper, returned 21%. A theme ETF beating the broad market by a factor of nearly five in five months is the kind of number that sends people to Google, and that is what you are doing here.
QTUM is a straightforward thematic vehicle. It tracks the BlueStar Quantum Computing and Machine Learning Index, holds roughly 70 to 80 names on an equal-weighted basis, charges a 0.40% expense ratio, and has been trading since September 2018. The $23.21 launch-window price sits well in the rear-view mirror, with the fund up 627% since inception and 99% in the trailing year alone. The 2026 surge is therefore the second leg of a move that was already running.
What actually did the work Equal weighting matters here, because it means the run is not the product of one or two names dragging an index higher in a Mag 7-style top-heavy way. The run is the product of the bench, with the equal-weighted structure preventing any one or two names from dragging the index higher Mag 7 style. That said, the pure-play quantum names inside QTUM have done staggering fundamental work this year, and they are the easiest place to start.
IonQ (NYSE:IONQ | IONQ Price Prediction) reported Q1 2026 revenue of $64.67 million, growth of 755% year over year, and the company raised full-year guidance to $260 million to $270 million while telling the Street to expect adjusted EBITDA losses of ($330) million to ($310) million. Remaining performance obligations stood at $470 million, up 554% year over year. CEO Niccolo de Masi described it as "our fourth consecutive quarter of record-breaking results and the biggest quarter in our company’s history". The stock is up 59% YTD and 55% in the last month alone.
Rigetti Computing (NASDAQ:RGTI) is the smaller, noisier sibling. Q1 revenue came in at $4.4 million against $1.47 million a year earlier, nearly a triple, and the company is sitting on $569 million in cash and investments with no debt. The 108-qubit Cepheus-1-108Q is now generally available on Rigetti QCS, Amazon Braket, Microsoft Azure Quantum, and qBraid, with median two-qubit gate fidelity of 99.8% and prototype results as high as 99.9%. CEO Subodh Kulkarni called Cepheus-1-108Q "one of the most powerful generally available gate-based quantum computers in the world". The stock is up 21% YTD but more than doubled over the trailing year at 119%.
The fundamentals are real, with the usual caveat that real means "triple-digit growth off a tiny base." IonQ is still posting an adjusted EBITDA loss of ($97) million per quarter and burned $151 million in operating cash. Rigetti’s GAAP net income of $33 million is almost entirely a $54 million non-cash swing in derivative warrant liabilities, not a business turning a profit. These are venture-style stories trading inside a public-market wrapper. The mechanism that lifted QTUM is partly that the wrapper itself, an equal-weighted basket, lets you ride the theme without picking which trapped-ion or superconducting bet survives.
The bench, the chips, and the AI overlap The other engine is the "and Machine Learning" half of the index name. QTUM owns a long tail of semiconductor, networking, and cloud-infrastructure names that have benefited from the same AI capex wave powering the Magnificent 7. Goldman Sachs noted in its 2026 outlook that the AI capex boom has become the dominant business and investment engine in the US economy, with growth based on "long-term transformative investments potentially masking the true nature of the underlying real economy." Vanguard framed 2026 as the year AI gets "embedded in workflows" with a possible compute-paradigm shift if the "hoped-for quantum leap in AI capability remains elusive." That is the macro tailwind sitting under the basket.
So you have two stacked tailwinds inside one fund. Pure-play quantum names compounding from microscopic revenue bases at triple-digit growth rates, and AI-adjacent semis and cloud platforms riding the same capex story that has lifted QQQ 21% YTD. Equal weighting then amplifies the quantum half. In a market-cap-weighted theme fund, a name like Rigetti at an $8.93 billion market cap would be a rounding error next to NVIDIA. In QTUM, it gets the same slot as the largest holdings on every rebalance. That is the structural reason the ETF outran the Mag 7 in 2026 even though the Mag 7 itself had a fine year.
Real progress or sentiment Both, and the proportions matter. The revenue numbers at IonQ are verifiable filings. About 60% of revenue is commercial and 35% international, and the company shipped its first 256-qubit system to the University of Cambridge along with DARPA, Space Development Agency, and Missile Defense Agency contracts. Government and defense buyers writing real checks for real hardware is a different signal than press-release qubit counts.
What is harder to defend is valuation. IonQ carries a market cap of roughly $26.65 billion against full-year revenue guidance topping out at $270 million, which works out to a price-to-sales ratio in the high double digits even on the optimistic line. Rigetti is at $8.93 billion on $4.4 million of quarterly revenue, which is a sentence that does not require commentary. One AI-focused podcast guest captured the mood when discussing the sector last cycle, noting that two of the quantum names "have like 7 billion in equity value between them and they have like less than 10 million in trailing revenue" and calling it a "total bubble." The valuations have only stretched since.
Polymarket, for what it is worth, has a market on whether the US federal government will take a stake in IonQ resolving by year-end, with Yes priced at 44% and No at 56%. That is the kind of question that exists in a sentiment regime, not in a sober one.
What to watch from here The forward case for QTUM has three legs, and you can monitor each of them without a Bloomberg terminal.
First, watch IonQ’s revenue cadence against the Q2 guide of $65 million to $68 million and the full-year $260 million to $270 million bar. The basket re-rated this year because IonQ delivered a 30% beat on Q1 guidance midpoint. A clean in-line report would still be acceptable. A miss would tell you the growth curve is bending, and at these multiples that matters more than direction.
Second, watch the AI capex line. The leading indicators are the hyperscaler capex commitments each quarter and the bond-issuance pace from AI-oriented names, which Goldman flagged as having become more active in the 2025 corporate bond market. QTUM’s quantum-adjacent half rides that wave. If capex guidance starts coming down, the chip and cloud bench inside the fund stops contributing and the burden falls entirely on a small pile of pre-revenue quantum names that cannot carry it alone.
Third, watch fidelity benchmarks and customer announcements rather than qubit-count headlines. 99.8% median two-qubit gate fidelity on a generally available 108-qubit system is the kind of number that determines whether quantum advances from a science project to something a pharmaceutical company will pay seven figures to access. That is the real fundamental dial.
The honest read is that QTUM’s 2026 is a regime trade riding two tailwinds at once, and the trade worked because the equal-weighted structure let a handful of small, fast-growing pure-plays do disproportionate work alongside an AI-adjacent bench. The mechanism is intact today. It is also expensive today. A QTUM bought at $168.76 is a different security than one bought at $109.44 on January 2, even with the same ticker and the same prospectus. The number to remember is the gap between QTUM’s 54% and SPY’s 11%. Gaps that wide rarely repeat from the new starting line, and the question for the next five months is whether the IonQ guide for Q2 lands above $68 million.
I've got bad news and good news for Rigetti Computing (RGTI +6.51%) investors today.
Bad news first: Rigetti stock is plunging 11.6% through 11:30 a.m. ET Friday. And the good news?
Image source: Getty Images.
No bad news for Rigetti Computing The good news is that there's no specific bad news behind the sell-off -- no earnings reports that missed targets, no analyst downgrades, not even so much as a lowered price target on Wall Street. Instead, Rigetti stock seems to be going down simply because everything tech is selling off today: Bitcoin (BTC +2.62%) is off nearly 5% so far this morning, Nvidia (NVDA +2.30%) shares are off a similar amount, while memory company Micron (MU +11.48%) is down even more.
Basically, what we're looking at here is just a "risk-off" day for the market.
What sparked it? The most likely catalyst seems to be worries over Broadcom's (AVGO +3.54%) earnings report Wednesday night. Broadcom spooked investors when it warned that sales of its artificial intelligence chips will "only" triple in Q3, and not grow even faster, as analysts had hoped.
And now everyone is panicking about everything tech, quantum computing stocks included.
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So, is it safe to buy Rigetti stock? Just knowing why Rigetti stock is selling off doesn't necessarily mean it's safe to buy it, however. As a technology and as an industry, quantum computing is still in its infancy and probably years away from being a profitable endeavor.
In the case of Rigetti, analysts polled by S&P Global Market Intelligence don't expect profits to arrive as far out as analysts are willing to make forecasts (which is 2030), with the company burning through hundreds of millions of dollars in cash along the way. Before buying this dip, make sure to check your risk tolerance first.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Broadcom, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
Rigetti Computing (NASDAQ:RGTI) is back in every quantum chat room after running 53.6% in a month on hopes that its 108-qubit system finally turns research into revenue. But here’s what you should actually be watching.
The Rigetti story sounds great until you read the income statement. Full-year 2025 revenue declined to $7.09 million from $10.79 million in 2024, a 34.31% drop. Q1 2026 looked better on the surface at $4.4 million, but the headline $33.1 million GAAP net income came from a $53.7 million favorable swing in derivative warrant liabilities, an accounting artifact, while the actual operation lost $26 million and burned $16.2 million in operating cash. Management offers no formal revenue guidance, and Rigetti itself flags fault-tolerant quantum computing as a longer-term objective with an uncertain timeline.
Now stack that against the valuation. Alpha Vantage pegs the trailing price-to-sales ratio at 867 on $10 million in trailing revenue. The CFO and CTO have been disposing of stock into the rally, with the CTO unloading nearly 19,000 shares on May 22, 2026. Retail is already wobbling: r/stocks discussions on May 22, 2026 ran “very bearish” with posts like “Quantum stocks are sham / don’t buy the pop today.” When the only thing growing reliably is the share count, that signals a hype cycle.
IonQ (NYSE:IONQ | IONQ Price Prediction) is doing what Rigetti keeps promising. Three reasons it deserves your attention instead.
1. A real, contracted backlog IonQ closed Q1 2026 with remaining performance obligations of $470 million, up 554% year over year. That is contracted, visible future revenue, the kind of number retirement investors should care about. Rigetti’s order book is still measured in one-off chip sales.
2. Enterprise validation across clouds and customers IonQ is the only pure-play quantum provider natively integrated across all three major public clouds (Amazon AWS, Microsoft Azure, and Google Cloud). Q1 brought the first 256-qubit system sale to the University of Cambridge, a $39 million Space Development Agency HALO contract, selection for the Missile Defense Agency SHIELD IDIQ, and selling into more than 30 countries. Revenue mix is roughly 60% commercial and 35% international. That is enterprise utility at commercial scale.
3. Scale, growth, and a cash cushion to fund it Q1 revenue hit $64.7 million, up 755% year over year and 30% above the midpoint of guidance. Management raised full-year guidance to $260 million to $270 million, with organic growth over 100%. CEO Niccolo de Masi told investors IonQ is “raising our revenue expectations for the full year to $270 million at the high end, based upon the strong and growing demand for our leading quantum computers.” The company sits on $493.5 million in cash against shareholders’ equity of $4.99 billion, with a pending SkyWater Technology acquisition aimed at vertically integrating chip fabrication.
Both names burn cash. Both trade at speculative multiples. The difference is that IonQ already shipped a fourth consecutive record quarter, has guidance you can model, and a backlog Wall Street can underwrite. Rigetti has a balance sheet and a story.
What to watch next: IonQ’s ability to convert its $470 million backlog into recognized revenue, and whether Rigetti can produce organic top-line growth to justify its valuation.
Rigetti Computing, Inc. (RGTI - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this company have returned +9.2% over the past month versus the Zacks S&P 500 composite's +1.9% change. The Zacks Internet - Software industry, to which Rigetti Computing belongs, has gained 1.7% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Rigetti Computing is expected to post a loss of $0.03 per share, indicating a change of +40% from the year-ago quarter. The Zacks Consensus Estimate has changed -37.5% over the last 30 days.
The consensus earnings estimate of -$0.18 for the current fiscal year indicates a year-over-year change of +71.9%. This estimate has changed -38.7% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $0.18 indicates a change of +0.9% from what Rigetti Computing is expected to report a year ago. Over the past month, the estimate has changed +5.9%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Rigetti Computing is rated Zacks Rank #4 (Sell).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Rigetti Computing, the consensus sales estimate for the current quarter of $4.91 million indicates a year-over-year change of +173%. For the current and next fiscal years, $25.32 million and $52.04 million estimates indicate +257.3% and +105.5% changes, respectively.
Last Reported Results and Surprise HistoryRigetti Computing reported revenues of $4.4 million in the last reported quarter, representing a year-over-year change of +199.3%. EPS of -$0.04 for the same period compares with -$0.08 a year ago.
Compared to the Zacks Consensus Estimate of $3.24 million, the reported revenues represent a surprise of +35.59%. The EPS surprise was +20%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates just once over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Rigetti Computing is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Rigetti Computing. However, its Zacks Rank #4 does suggest that it may underperform the broader market in the near term.
Key Takeaways RGTI made its 108-qubit Cepheus-1-108Q system broadly available across major quantum platforms.RGTI's Q1 revenue nearly tripled to $4.4 million, driven by Novera QPU deliveries and contracts.Rigetti targets quantum advantage with a ~1,000-qubit system, 99.9% gate fidelity and error mitigation. Rigetti Computing (RGTI - Free Report) is strengthening its position in the quantum computing race through a combination of technological advancements and expanding customer adoption. During the first quarter of 2026, the company made its 108-qubit Cepheus-1-108Q system generally available through Rigetti Quantum Cloud Services, Amazon Braket, Microsoft Azure Quantum and qBraid. Management believes the platform is among the world’s most powerful gate-based quantum computers and the largest modular quantum computing system currently on the market.
Built using 12 interconnected 9-qubit chiplets, the system validates Rigetti’s chiplet-based scaling architecture, a key element of its long-term roadmap toward larger and more capable quantum systems. The company also highlighted continued progress in improving gate fidelity and performance, with management targeting approximately 99.5% median two-qubit gate fidelity later in 2026 while maintaining its speed advantages.
Beyond technology milestones, Rigetti continues to gain customer traction across both cloud and on-premises deployments. First-quarter revenues nearly tripled year over year to $4.4 million, primarily driven by deliveries of Novera quantum processing units (QPUs) and related contracts. The company continues to expand its installed base through sales to universities, research institutions and national laboratories. It is also reporting growing interest from commercial customers in industries such as materials science, logistics and financial services.
Importantly, management reiterated its belief that Rigetti can achieve quantum advantage within roughly three years, targeting a system with around 1,000 qubits, 99.9% two-qubit gate fidelity and integrated error mitigation capabilities. Backed by approximately $569 million in cash and no debt, Rigetti is well positioned to continue investing aggressively in scaling its technology platform and capitalizing on emerging opportunities in the rapidly evolving quantum computing market.
Peers UpdatesIonQ (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.
D-Wave Quantum (QBTS - Free Report) recently announced that it has entered into a non-binding Letter of Intent with the U.S. Department of Commerce for proposed funding of up to $100 million under the CHIPS and Science Act. The initiative aims to support the advancement and large-scale deployment of the company’s annealing and gate-model quantum computing technologies. As part of the proposed arrangement, the U.S. government would receive a $100 million equity stake in D-Wave.
The funding is expected to help expand quantum system development at D-Wave’s planned facility in Boca Raton, FL, as well as its existing research and development operations. The investment could accelerate the commercialization of next-generation quantum platforms, including a 100,000-qubit annealing system and a 10,000-qubit gate-model computer. It could also enhance D-Wave’s competitive standing in the rapidly evolving quantum computing market and support U.S. leadership in critical advanced technologies.
Rigetti Computing’s Price Performance, Valuation and EstimatesShares of RGTI have lost 1.8% in the year-to-date period compared with the industry’s decline of 11%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 12.39, 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 70.3% improvement from the year-ago period.
The company currently has a Zacks Rank #4 (Sell).
Image Source: Zacks Investment Research
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
It has been about a month since the last earnings report for Rigetti Computing, Inc. (RGTI - Free Report) . Shares have added about 3.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Rigetti Computing due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
RGTI Q1 Earnings & Revenues Beat Estimates, Gross Margin UpRigetti reported first-quarter 2026 adjusted loss per share of 4 cents, narrower than the loss per share of 8 cents in the prior-year quarter. The metric also surpassed the Zacks Consensus Estimate of earnings by 20%.
GAAP loss per share in the reported quarter was 6 cents against the earnings per share of 13 cents in the prior-year quarter.
Rigetti’s Revenue DetailsThe company reported total revenues of $4.4 million, up 198.9% year over year. The top line surpassed the Zacks Consensus Estimate by 35.6%.
Rigetti’s first-quarter 2026 revenues were driven primarily by higher sales of its on-premises Novera quantum systems and broader customer adoption across academic, government and research institutions. The commercial rollout of its 108-qubit Cepheus-1-108Q system across major cloud platforms also supported top-line growth.
RGTI’s Margin TrendIn the quarter under review, RGTI’s gross profit improved 211.8% year over year to $1.4 million. The gross margin expanded 130 basis points to 31.3%.
Selling, general and administrative expenses increased 11.4% year over year to $7.4 million. Research and development expenses increased 29.1% year over year to $19.9 million. Total operating expenses of $27.3 million increased 23.8% year over year.
Operating loss for the quarter under review totaled $25.9 million compared with $21.6 million in the prior-year quarter.
RGTI’s Financial PositionRGTI exited the first quarter of 2026 with cash, cash equivalents and short-term available-for-sale investments of $418.2 million compared with $443.5 million at the end of the fourth quarter of 2025.
The company ended the quarter with no debts on its balance sheet.
Net cash used in operating activities at the end of the first quarter was $16.2 million compared with $13.7 million a year ago.
How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.
The consensus estimate has shifted -37.5% due to these changes.
VGM ScoresCurrently, Rigetti Computing has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook Rigetti Computing has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry PlayerRigetti Computing belongs to the Zacks Internet - Software industry. Another stock from the same industry, Nice (NICE - Free Report) , has gained 2.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Nice reported revenues of $768.62 million in the last reported quarter, representing a year-over-year change of +9.8%. EPS of $2.64 for the same period compares with $2.87 a year ago.
Nice is expected to post earnings of $2.63 per share for the current quarter, representing a year-over-year change of -12.6%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Nice. Also, the stock has a VGM Score of C.
Rigetti Computing (NASDAQ:RGTI) stock is 1.4% higher to trade at $19.97 today. The quantum computing concern is down 9.7% in 2026 and 21% in June alone, as high beta growth stocks have suffered from tech sector profit taking. The upside though, if past is precedent, is that RGTI has pulled back to a historically bullish trendline.
According to Schaeffer's Senior Quantitative Analyst Rocky White, Rigetti stock is trading within 0.75 times of the 50-day moving average's 20-day average true range (ATR), after spending at least 80% of the previous two weeks and 80% of the prior 42 trading sessions above that trendline. This setup has appeared five times during the last decade. One month later, the stock was higher 60% of the time after these signals, averaging a 22.7% gain.
A move of similar magnitude would have RGTI filling its June drawdown, and testing the downtrend line from those October highs above $58, seen below. It's also worth noting Rigetti's 14-Day Relative Strength Index (RSI) is below 50, an area that preceded a frenetic rally in late May.
A short squeeze could help as well. Short interest is down 2% in the most recent reporting periods, yet the 49.21 million shares sold short account for 15% of the shares' total available float.
