Bull vs. Bear Analysis of D-Wave Quantum Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2026
0mins
Should l Buy QBTS?
Source: Fool
- Leadership in Quantum Annealing: D-Wave Quantum has established itself as a leader in quantum annealing, focusing on optimization problems that can provide significant competitive advantages in industries like finance, logistics, and defense, with bookings reaching $30 million for January 2025, indicating strong market demand.
- Exploration of Traditional Quantum Systems: The company is venturing into gate-based quantum computing using fluxonium qubits to enhance system accuracy; however, it has yet to publish milestone data, and its acquisition of Quantum Circuits brings a dual-rail gate-model processor with built-in error detection, potentially improving future product performance.
- Market Valuation Risks: Despite D-Wave's strong performance in quantum annealing, its $7 billion market cap contrasts sharply with projected sales of less than $25 million in 2025, suggesting that market expectations for future growth may be overly optimistic, posing significant risks.
- Questioning Technology Value: The superiority of D-Wave's quantum annealing technology over artificial intelligence remains uncertain, and the lack of peer-reviewed data for its gate-based systems may undermine investor confidence in its current valuation, advising caution for potential investors.
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Analyst Views on QBTS
Wall Street analysts forecast QBTS stock price to rise
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 24.030
Low
35.00
Averages
40.67
High
48.00
Current: 24.030
Low
35.00
Averages
40.67
High
48.00
About QBTS
D-Wave Quantum Inc. is a quantum computing company, which is engaged in the development and delivery of quantum computing systems, software, and services. The Company builds and delivers systems, cloud services, application development tools, and professional services to support the end-to-end quantum computing journey for enterprises and developers. The Company's products include Cloud Platform, Systems, Professional Services, and others. Under its Cloud Platform, the Leap quantum cloud service delivers immediate, real-time access to its quantum computers and hybrid solvers services. Under its Systems, the Advantage quantum system is a quantum computer designed for business. It also offers quantum applications to a range of customers, including resource scheduling, factory scheduling, industrial construction design, drug discovery, and others. It offers solutions across workforce scheduling, production scheduling, vehicle routing, resource optimization, and cargo loading.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
D-Wave Quantum Reports 81% Revenue Decline in Q1
- Significant Revenue Drop: D-Wave Quantum reported Q1 revenue of $2.9 million, an 81% decline year-over-year, falling short of Wall Street's expectations of $4.14 million, indicating increasing competitive pressure in the market.
- Booking Surge: Despite the revenue drop, D-Wave experienced a massive 1,994% year-on-year increase in bookings to $33.4 million, primarily driven by a $20 million agreement with Florida Atlantic University, highlighting potential for future growth.
- Key Agreement Signed: The company also secured a $10 million Quantum Computing as a Service agreement with a Fortune 100 company, which is expected to generate substantial revenue in the upcoming quarters.
- Market Reaction: Although QBTS stock is down 8% year-to-date, it has risen 117% over the past 12 months, reflecting investor confidence in the company's long-term potential despite facing short-term challenges.
See More
D-Wave Quantum Reports Q1 Results with Mixed Performance Metrics
- Performance Overview: D-Wave Quantum reported an adjusted loss of $0.05 per share for Q1, with revenue plummeting 80.9% year-over-year to $2.86 million, significantly missing analysts' expectations of $4.04 million, indicating substantial revenue challenges for the company.
- Order Growth: Despite the revenue decline, D-Wave achieved $33.4 million in bookings, a staggering 1,994% increase year-over-year and a 149% sequential rise, reflecting strong market demand and commercial appeal for its quantum computing solutions.
- Technological Leadership: CEO Alan Baratz emphasized that D-Wave's leadership in both annealing and gate-model quantum computing uniquely positions the company in the market, with the acquisition of Quantum Circuits expected to accelerate the delivery of a scalable, error-corrected gate model system.
- Investor Day Announcement: D-Wave is set to host its first-ever investor day on June 1 at the New York Stock Exchange, where it will provide an in-depth look at its technology leadership, product roadmap, commercial momentum, and long-term growth strategy, aiming to bolster investor confidence and attract more attention.
See More
D-Wave Quantum Reports Q1 Earnings with Mixed Results
- Earnings Report: D-Wave Quantum's Q1 GAAP EPS of -$0.05 beats expectations by $0.05, but revenue of $2.86M falls short by $1.28M, indicating challenges in revenue growth for the company.
- Market Reaction: While the slight improvement in EPS may provide some relief, the revenue miss could lead to a decline in investor confidence, negatively impacting stock prices and reflecting concerns about the company's future growth.
- Analyst Outlook: Analysts maintain a bearish outlook on D-Wave Quantum, suggesting that the company's competitiveness in quantum computing may be threatened by long-term parity, especially under the guise of early revenue premiums.
- Valuation Challenges: The extreme valuation of D-Wave Quantum juxtaposed with execution realities may confuse investors when assessing its long-term investment value, particularly in the context of still-maturing quantum computing technology.
See More
D-Wave Quantum Reports Q1 Earnings with Mixed Results
- Earnings Performance: D-Wave Quantum's Q1 GAAP EPS of -$0.05 beats expectations by $0.05, yet revenue of $2.86M falls short by $1.28M, indicating significant challenges in revenue growth for the company.
- Revenue Decline: The Q1 2026 revenue of $2.9M represents a $12.1M drop from $15.0M in Q1 2025, primarily due to the previous year's inclusion of $12.6M from the first sale of a quantum computing system, reflecting a notable weakening in sales capability.
- Order Growth: Total bookings for the quarter reached $33.4M, a staggering 1,994% increase year-over-year from $1.6M in Q1 2025, and a 149% rise from $13.4M in Q4 2025, showcasing a strong rebound in market demand.
- Key Transactions: This quarter's bookings included a $20 million system purchase by Florida Atlantic University and a $10 million two-year Quantum Computing as a Service agreement with a Fortune 100 company, highlighting the company's appeal to high-value clients and its market expansion capabilities.
See More
Quantum Computing Stocks Surge Amid Market Recovery
- Market Bounce: From March 30 to May 6, quantum computing leaders IonQ and D-Wave Quantum saw stock increases of 98% and 84%, respectively, reflecting strong investor interest in quantum computing, although the overall market recovery contributed as well.
- IonQ's Impressive Earnings: IonQ reported a record first-quarter revenue of $64.7 million, up 755% year-over-year, and raised its full-year sales guidance to between $260 million and $270 million, indicating robust growth potential in its business model.
- D-Wave's Financial Strength: D-Wave Quantum ended 2025 with $884.5 million in cash and marketable investments and is set to report its first-quarter operating results on May 12, which is expected to further solidify its market position.
- Investment Risk Warning: Despite the impressive performance of quantum computing stocks, historical trends suggest that this technology is still in its early stages, and investors should exercise caution to avoid the risk of a bubble burst due to overly optimistic market expectations.
See More
Seven Billionaires Bet on Google's Quantum Computing
- Billionaire Investment Trend: Seven billionaires are heavily investing in Alphabet, with Himalaya Capital holding over $1.59 billion in Alphabet shares by the end of 2025, indicating strong confidence in the company's future growth potential.
- Buffett's Shift: Warren Buffett remedied his earlier regret of not investing in Google by acquiring over $7.1 billion in Alphabet shares before stepping down as CEO of Berkshire Hathaway, reflecting his recognition of the company's sustained growth prospects.
- Quantum Computing Breakthrough: Google's Quantum AI team achieved quantum supremacy in 2019 and demonstrated the first logical qubit prototype in 2023, showcasing its leading position in quantum computing, which could lay the groundwork for future technological revolutions.
- Diverse Technological Advantages: Alphabet excels not only in quantum computing but also has the fastest-growing cloud service division, and leads in AI and autonomous driving, enhancing its market competitiveness and investment appeal.
See More
D-Wave Quantum Reports 81% Revenue Decline in Q1
- Significant Revenue Drop: D-Wave Quantum reported Q1 revenue of $2.9 million, an 81% decline year-over-year, falling short of Wall Street's expectations of $4.14 million, indicating increasing competitive pressure in the market.
- Booking Surge: Despite the revenue drop, D-Wave experienced a massive 1,994% year-on-year increase in bookings to $33.4 million, primarily driven by a $20 million agreement with Florida Atlantic University, highlighting potential for future growth.
- Key Agreement Signed: The company also secured a $10 million Quantum Computing as a Service agreement with a Fortune 100 company, which is expected to generate substantial revenue in the upcoming quarters.
- Market Reaction: Although QBTS stock is down 8% year-to-date, it has risen 117% over the past 12 months, reflecting investor confidence in the company's long-term potential despite facing short-term challenges.
See More
D-Wave Quantum Reports Q1 Results with Mixed Performance Metrics
- Performance Overview: D-Wave Quantum reported an adjusted loss of $0.05 per share for Q1, with revenue plummeting 80.9% year-over-year to $2.86 million, significantly missing analysts' expectations of $4.04 million, indicating substantial revenue challenges for the company.
- Order Growth: Despite the revenue decline, D-Wave achieved $33.4 million in bookings, a staggering 1,994% increase year-over-year and a 149% sequential rise, reflecting strong market demand and commercial appeal for its quantum computing solutions.
- Technological Leadership: CEO Alan Baratz emphasized that D-Wave's leadership in both annealing and gate-model quantum computing uniquely positions the company in the market, with the acquisition of Quantum Circuits expected to accelerate the delivery of a scalable, error-corrected gate model system.
- Investor Day Announcement: D-Wave is set to host its first-ever investor day on June 1 at the New York Stock Exchange, where it will provide an in-depth look at its technology leadership, product roadmap, commercial momentum, and long-term growth strategy, aiming to bolster investor confidence and attract more attention.
See More
D-Wave Quantum Reports Q1 Earnings with Mixed Results
- Earnings Report: D-Wave Quantum's Q1 GAAP EPS of -$0.05 beats expectations by $0.05, but revenue of $2.86M falls short by $1.28M, indicating challenges in revenue growth for the company.
- Market Reaction: While the slight improvement in EPS may provide some relief, the revenue miss could lead to a decline in investor confidence, negatively impacting stock prices and reflecting concerns about the company's future growth.
- Analyst Outlook: Analysts maintain a bearish outlook on D-Wave Quantum, suggesting that the company's competitiveness in quantum computing may be threatened by long-term parity, especially under the guise of early revenue premiums.
- Valuation Challenges: The extreme valuation of D-Wave Quantum juxtaposed with execution realities may confuse investors when assessing its long-term investment value, particularly in the context of still-maturing quantum computing technology.
See More
D-Wave Quantum Reports Q1 Earnings with Mixed Results
- Earnings Performance: D-Wave Quantum's Q1 GAAP EPS of -$0.05 beats expectations by $0.05, yet revenue of $2.86M falls short by $1.28M, indicating significant challenges in revenue growth for the company.
- Revenue Decline: The Q1 2026 revenue of $2.9M represents a $12.1M drop from $15.0M in Q1 2025, primarily due to the previous year's inclusion of $12.6M from the first sale of a quantum computing system, reflecting a notable weakening in sales capability.
- Order Growth: Total bookings for the quarter reached $33.4M, a staggering 1,994% increase year-over-year from $1.6M in Q1 2025, and a 149% rise from $13.4M in Q4 2025, showcasing a strong rebound in market demand.
- Key Transactions: This quarter's bookings included a $20 million system purchase by Florida Atlantic University and a $10 million two-year Quantum Computing as a Service agreement with a Fortune 100 company, highlighting the company's appeal to high-value clients and its market expansion capabilities.
See More
Quantum Computing Stocks Surge Amid Market Recovery
- Market Bounce: From March 30 to May 6, quantum computing leaders IonQ and D-Wave Quantum saw stock increases of 98% and 84%, respectively, reflecting strong investor interest in quantum computing, although the overall market recovery contributed as well.
- IonQ's Impressive Earnings: IonQ reported a record first-quarter revenue of $64.7 million, up 755% year-over-year, and raised its full-year sales guidance to between $260 million and $270 million, indicating robust growth potential in its business model.
- D-Wave's Financial Strength: D-Wave Quantum ended 2025 with $884.5 million in cash and marketable investments and is set to report its first-quarter operating results on May 12, which is expected to further solidify its market position.
- Investment Risk Warning: Despite the impressive performance of quantum computing stocks, historical trends suggest that this technology is still in its early stages, and investors should exercise caution to avoid the risk of a bubble burst due to overly optimistic market expectations.
See More
Seven Billionaires Bet on Google's Quantum Computing
- Billionaire Investment Trend: Seven billionaires are heavily investing in Alphabet, with Himalaya Capital holding over $1.59 billion in Alphabet shares by the end of 2025, indicating strong confidence in the company's future growth potential.
- Buffett's Shift: Warren Buffett remedied his earlier regret of not investing in Google by acquiring over $7.1 billion in Alphabet shares before stepping down as CEO of Berkshire Hathaway, reflecting his recognition of the company's sustained growth prospects.
- Quantum Computing Breakthrough: Google's Quantum AI team achieved quantum supremacy in 2019 and demonstrated the first logical qubit prototype in 2023, showcasing its leading position in quantum computing, which could lay the groundwork for future technological revolutions.
- Diverse Technological Advantages: Alphabet excels not only in quantum computing but also has the fastest-growing cloud service division, and leads in AI and autonomous driving, enhancing its market competitiveness and investment appeal.
See More
