Rigetti Computing's Q1 Revenue Surges but Stock Price Falls
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 14 2026
0mins
Source: Fool
- Revenue Surge: Rigetti Computing reported a Q1 revenue of $4.4 million, tripling from the previous quarter and exceeding the analyst consensus of $4.09 million, primarily driven by the sale of its Novera quantum processing unit to the University of Saskatchewan, indicating a growing market demand for quantum computing solutions.
- Margins and Expenses: While gross margins improved slightly to 31%, operating expenses surged by 24% to $7.3 million, leading to an adjusted EPS loss of $0.04, which, although better than last year's loss of $0.06, still raises concerns about the company's profitability amidst rising costs.
- Technological Advances and Challenges: The launch of the Cepheus-1-108Q quantum system, touted as the world's largest modular quantum computing system, achieved a 2-qubit fidelity of 99.1%, yet it falls short of the 99.5% target and lags behind competitors like IonQ, which boasts a 99.99% fidelity, highlighting ongoing accuracy challenges that could impact future competitiveness.
- Market Outlook and Valuation: Despite Rigetti's market capitalization exceeding $6 billion, analysts project revenues of less than $24 million by 2026, making the current valuation appear unreasonable given the company's fidelity issues, suggesting that investors should approach the stock with caution.
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Analyst Views on RGTI
Wall Street analysts forecast RGTI stock price to rise
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 24.160
Low
30.00
Averages
39.75
High
51.00
Current: 24.160
Low
30.00
Averages
39.75
High
51.00
About RGTI
Rigetti Computing, Inc. is a full-stack quantum computing company. The Company operates quantum computers over the cloud and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. The Company’s quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing. It has developed a multi-chip quantum processor for scalable quantum computing systems. Through the Company’s Quantum Computing as a Service (QCaaS) platform, its machines can be integrated into any public, private or hybrid cloud. It is also engaged in the sale of quantum processing units (QPUs) and custom computing components, and development contracts and other services. Its QPUs contain fabricated silicon-based chips featuring superconducting qubits. The Company designs and manufactures its chips in-house at Fab-1, an integrated quantum device manufacturing facility.
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.
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- Government Contract Impact: By securing government contracts, IonQ has strengthened its market position, which not only provides a stable revenue stream but also enhances its competitiveness within the industry.
- Technology Risks and Opportunities: While quantum computing technology faces significant risks, IonQ's advancements may position it favorably in future markets, thereby influencing investor confidence and market performance.
See More
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- Revenue Growth Potential: Despite facing market challenges, IonQ and its competitors are showing signs of revenue growth, indicating a gradual increase in demand for quantum computing technologies.
- Government Contract Opportunities: All three companies are vying for government contracts, which not only provide a stable revenue source but also enhance their market positions in the quantum computing field.
- Technology Risks and Acquisition Potential: With technology risks intertwined with acquisition potential, the future development of IonQ, D-Wave, and Rigetti will depend on how effectively they manage these challenges and seize market opportunities.
See More
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