Speculative quantum-computing stocks are facing a sharp reality check as investors grow less willing to pay a premium for long-dated growth stories.
D-Wave Quantum (QBTS) has declined 27.7% over the past three months, while Quantinuum (QNT) has fallen 25.1% in the same period.
The Federal Reserve raised its benchmark federal funds target range by 25 basis points to 3.75%-4.00% on September 16, its first rate hike since July 2023.
The Fed cited persistently elevated inflation and emphasized the need to support a timely return to its 2% goal as justification for the move.
Brent crude has moved back above $100 a barrel, and the 10-year Treasury yield has approached 5%, increasing pressure on high-duration speculative technology stocks.
Reuters notes that higher oil prices, elevated bond yields, and a more hawkish Fed are keeping investors focused on the risk of further rate increases.
D-Wave’s second-quarter 2026 revenues came in at $3.1 million, flat year over year, though bookings rose 59% and first-half bookings surged 1,120%.
However, QBTS second-quarter adjusted EBITDA loss widened 85% as the company increased spending on product development and go-to-market initiatives.
Quantinuum delivered faster revenue growth, with second-quarter revenues jumping 279%, and the company expects full-year 2026 revenues of $28 to $32 million.
Year-to-date bookings for Quantinuum had reached approximately $81 million, supported by a $2.1 billion cash position that provides a substantial funding cushion.
Despite that momentum, Quantinuum’s second-quarter adjusted EBITDA loss stood at $68 million, while cash used in operations reached $66.2 million during the quarter.
Management does not expect meaningful revenue scale or positive free cash flow from Quantinuum until later in the decade, extending the commercialization timeline considerably.
D-Wave currently trades at a forward one-year price-to-sales ratio of 94.15X, while Quantinuum trades at a significantly higher 255.84X multiple.
Both figures dwarf the S&P 500’s 4.21X forward one-year price-to-sales ratio, illustrating the elevated expectations still embedded in these stocks despite recent declines.
Both QBTS and QNT carry a Zacks Rank of 4, which translates to a Sell rating, reflecting analyst caution about near-term prospects for each company.
D-Wave holds stronger bookings momentum and a higher commercial revenue mix, with 62.4% of second-quarter revenues coming from commercial customers.
Quantinuum’s much higher valuation leaves considerably less room for execution disappointments, even as it benefits from a larger and more liquid balance sheet.
Given elevated valuations, ongoing losses, and uncertain commercialization timelines, analysts recommend investors remain cautious on both stocks until a clearer path to profitability emerges.
