IonQ Q4 Exceeds Expectations with $61.9 Million Revenue

Welcome to the latest edition of "Quantum Leap" where The Fly decodes news and activity in the quantum computing space.POST-QUANTUM COMPLIANT:Wecan is advancing its collaboration with Sealsqto build a post-quantum-compliant infrastructure. Beyond digital identity, Wecan is working closely with Sealsq to enable evolutions of its security infrastructure toward post-quantum compliance. The company said, "As quantum computing technologies continue to progress, many cryptographic algorithms in use today may become vulnerable over time. For financial institutions, this represents a long-term strategic risk: sensitive client data, transaction histories, and identity credentials must remain protected not only today, but for decades to come. Preparing for post-quantum security is therefore no longer optional, it is a necessity."ENCRYPTION SOLUTION FOR TELECOMMUNICATIONS:Arqit Quantumand RAD announced a collaboration to deliver a joint quantum-safe encryption solution for telcos, enabling them to offer quantum-safe business services such as site-to-site and site-to-cloud VPNs, as well as data center interconnect. This announcement follows the successful integration of Arqit's NetworkSecure quantum-safe encryption key generation technology with RAD's high-performance ETX Carrier Edge platform.EMBEDDED WORLD:Sealsq announced its participation in Embedded World 2026, alongside its ASIC design services subsidiary IC'Alps. Embedded World will take place from March 10-12 at the Exhibition Centre Nuremberg, Germany. Sealsq's booth will be themed around Formula One racing and its official partnership with the BWT Alpine Formula One Team.JAPAN EVENTS:Sealsq announced its strategic participation in upcoming events in Japan, supporting the Japanese government's timeline for quantum security transitions. With Japan's National Cyber Command Office targeting 2035 for full adoption of PQC across government systems, aligned with U.S. NIST guidelines and emphasizing hybrid cryptographic approaches to counter "harvest now, decrypt later" threats, Sealsq is positioned to deliver production-ready solutions like the QS7001 secure SoC and QVault TPM to facilitate seamless migrations for critical infrastructure, supply chains, and private sectors.ION TRAP:Researchers at Fermi National Accelerator Laboratory and the Massachusetts Institute of Technology's Lincoln Laboratory have successfully trapped and manipulated ions using in-vacuum cryoelectronics, allowing for reduced thermal noise and improved sensitivity. This proof-of-principle experiment marks an important advancement toward building large-scale ion-trap quantum computing systems. At the heart of the effort were Fermilab-developed cryoelectronics - specialized circuits designed to operate at the extreme cold temperatures required for quantum computers. These cryoelectronics were integrated into MIT Lincoln Laboratory's ion-trap platform to test whether they could reliably perform key functions: moving individual ions, holding them at set positions and measuring the effects of electronic noise. Rigetti Computingis partnered with Fermilab to build the quantum computer.QUANTUM KEP DISTRIBUTION:IonQannounced that it has deployed the technology powering the Romanian National Quantum Communication Infrastructure, or RoNaQCI. The company said, "This initiative represents one of the largest and most complex operational quantum key distribution networks in Europe and one of the largest of its kind outside of China."EARNINGS RECAP:Quantum-Sireported fourth quarter results on Tuesday surpassing last year's EPS mark, but falling short in revenue. Jeff Hawkins, CEO, said, "Since our Investor & Analyst Day in November 2025, engagement from both existing and prospective customers around Proteus has developed nicely. Given the level of customer, prospective customer, and channel partner interest, we elected to release our Proteus list price a quarter earlier than originally planned, allowing our commercial team to more effectively work with customers to incorporate Proteus into their capital budgeting cycles. At a list price of $425,000, we believe Proteus is priced to capture the premium value of the platform and expected launch capabilities while also making the platform accessible to a larger number of potential customers than existing technologies. As we move through 2026, we expect tempered near-term revenue based upon deliberate strategic choices. These include continuing to offer the placement program we initiated during 2025 and embedding upgrade credits into Platinum Pro units sold during 2026 to provide a clear path to Proteus for customers. While this approach moderates near-term revenue, we believe it positions Proteus for a stronger launch and supports long-term shareholder value creation."Quantum Computingbeat Street EPS expectations, but missed the mark in revenue in the fourth quarter. Yuping Huang, CEO, commented, "We are now seeing early customer engagement and revenue contribution from our foundry services and product portfolio as we continue progressing toward broad scale commercialization." Cantor Fitzgerald lowered the firm's price target on Quantum Computing to $10 from $15 and maintained a Neutral rating on the shares. Quantum can capture 5% of the quantum hardware, software, and services market by 2035, which would equate to $375M in sales in 10 years, the analyst told investors.D-Wave Quantummissed fell short of both EPS and revenue consensus in Q4. Alan Baratz, CEO of D-Wave said, "We are entering 2026 with exceptional momentum: generating over $30 million in Bookings in January alone, expanding our market leadership through the acquisition of gate-model quantum computing company Quantum Circuits, Inc., and securing an eight-figure enterprise QCaaS agreement that underscores growing customer confidence in our technology's power to transform enterprise operations. 2026 is shaping up to be a defining year for D-Wave." Roth Capital lowered the firm's price target on D-Wave Quantum to $30 from $40 and reiterated a Buy rating on the shares. The company reported "solid" Q4 bookings and indicated that 2026 bookings thus far have expanded significantly, the analyst said. Roth lowered the target to reflect incremental operating expenses from D-Wave's Quantum Circuits acquisition. However, the firm is "encouraged" by the company's "strong funding position in support of these investments."IonQoutperformed last year's fourth quarter in 2026. "I am pleased to share that IonQ has once again significantly outperformed our revenue guidance range, exceeding the midpoint by 55% for the fourth quarter and 20% for the full year by delivering $61.9 million and $130.0 million respectively," said Niccolo de Masi, chairman and CEO. "Our strategic evolution into the world's only full-stack quantum platform company, and strong organic growth, positions us with continued momentum to achieve $235 million in revenue for 2026, at our current guidance midpoint. 2025 was a year of tremendous accomplishments and both a strategic and financial inflection point for IonQ. We became the first public quantum company in history with more than $100 million in GAAP revenue. We tripled our annual revenue and accelerated to a semiconductor-based roadmap for our industry-leading quantum computers. We expanded and deepened our platform into quantum networking, quantum sensing, and quantum security. We have now integrated our capabilities to create powerful operating momentum into 2026."DA Davidson lowered the firm's price target on IonQ to $35 from $55 and kept a Neutral rating on the shares after its Q4 results. The firm continues to believe that as more computationally complex workloads arise in the near-to-medium term, quantum systems will have an increasingly larger role in how we tackle these problems but it also recognizes that the field is "still heavily constrained by limited applied research and external investment in the space", the analyst told investors in a research note.