D-Wave Quantum (QBTS) has surged 42.9% over the past year, dramatically outpacing both its industry peers and broader market benchmarks.
The quantum computing company’s performance stands in sharp contrast to its industry’s 14.2% decline and towers over the S&P 500’s already-impressive 23.1% gain during the same period.
D-Wave develops and delivers quantum computing systems, software, and services for commercial customers, with core use cases centered on optimization, workforce scheduling, vehicle routing, and resource allocation.
The company generates revenue through three primary channels: cloud-based quantum computing as a service, professional services that help customers deploy solutions, and on-premises system sales.
Booking activity has been a major driver of investor enthusiasm, with bookings surging 1,994% from the year-ago period in the first quarter of 2026.
Over two dozen commercial customers represented more than 31% of bookings, while the largest single order was a $20 million system sale to Florida Atlantic University.
Remaining performance obligations stood at $42.4 million as of March 31, 2026, with roughly 54% expected to convert to revenues within the next 12 months and 71% within two years.
Investors are also watching D-Wave’s expanding product roadmap, which now includes gate-model computing following the Quantum Circuits acquisition completed in January 2026.
The company is targeting approximately 175 physical qubits by the end of 2028, then 10 logical qubits by 2030 and 100 logical qubits by the end of 2032, representing a significant long-term technical ambition.
D-Wave’s balance sheet provides substantial runway to fund this growth, with cash and cash equivalents totaling $338.2 million and marketable investment securities amounting to $250.2 million.
Despite the strong bookings picture, first-quarter 2026 revenues fell sharply to $2.9 million from $15.0 million in the first quarter of 2025, primarily because the prior-year period included $12.6 million from a system sale with no comparable revenue recognized this period.
This revenue timing dynamic creates meaningful quarter-to-quarter volatility, even as the broader bookings trend and remaining performance obligations continue to rise.
The Zacks Consensus Estimate for D-Wave’s 2026 loss per share has held steady at 25 cents over the past 30 days, reflecting cautious but stable analyst expectations.
Revenue projections nonetheless remain optimistic, with analysts forecasting 63.3% growth to $40.16 million in 2026, followed by an additional 128.5% jump to $91.76 million in 2027.
D-Wave currently carries a Zacks Rank of 3, or Hold, as investors weigh its strong commercial momentum against its ongoing losses and revenue concentration risks.
