Rigetti Computing (RGTI) shares have dropped sharply over the past month, raising fresh questions about investor patience with the quantum computing sector.
RGTI stock declined 21% over the past month, while D-Wave Quantum (QBTS) fell 27.6% and Quantum Computing Inc. (QUBT) slipped 19% over the same period.
The broader software market and the S&P 500 posted gains of 3.5% and 0.9%, respectively, highlighting the stark underperformance across quantum computing stocks.
Investors remain focused on whether companies like Rigetti can translate technological progress into consistent commercial revenue and a credible path to profitability.
Rigetti’s second-quarter 2026 results showed revenue growth driven by higher Novera quantum processing unit sales, but operating losses widened as research and development spending intensified.
On the balance sheet, Rigetti ended the second quarter of 2026 with $541.3 million in cash, cash equivalents and available-for-sale investments, carrying no debt.
That liquidity declined from $589.8 million at the end of 2025, but still provides the company meaningful runway to fund chip design, fabrication and dilution refrigeration infrastructure investments.
A major catalyst for the company came through a definitive agreement with the U.S. Department of Commerce for a $100 million award to accelerate superconducting quantum computing research and development.
The funding, allocated under the CHIPS Research and Development Office Broad Agency Announcement pursuant to the CHIPS Act, targets three key projects aimed at scaling quantum systems more efficiently.
These projects include miniaturizing readout electronics into an integrated package, expanding cryogenic capacity through a new cryostat architecture and developing fabrication capabilities for high-connectivity chip architectures.
As part of the agreement, the Department of Commerce will receive a minority, non-controlling equity stake in Rigetti, providing a return for U.S. taxpayers.
Rigetti’s modular, chiplet-based architecture also supports its longer-term scalability story, with its Cepheus-1-108Q system built from 12 interconnected nine-qubit chiplets exceeding 100 qubits.
Management is targeting approximately 1,000 qubits, two-qubit gate fidelity of 99.9% and gate speeds below 40 nanoseconds over roughly three years, though those milestones will require continued technical progress.
An expanded collaboration with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center is expected to integrate a nine-qubit Novera system into a high-performance computing environment for hybrid quantum-classical workloads.
Rigetti is also pursuing on-premises deployments, including a 108-qubit system for India’s C-DAC, which could widen its customer base across research and government sectors.
Despite these positives, the company’s operating expenses rose 48% year over year to $30.3 million in the second quarter of 2026, contributing to an operating loss of $28.1 million compared with $19.9 million a year ago.
Revenue remains heavily dependent on the timing of quantum system deliveries and government-funded contracts, making quarterly performance difficult to predict with confidence.
For full-year 2026, Rigetti is expected to post a 257.1% improvement in revenues, while loss per share is projected to narrow by 70.3% year over year.
RGTI currently trades at a Price/Book ratio of 7.84, compared with 5.40 for the broader Internet Software Market, reflecting a meaningful premium despite persistent losses and early-stage commercial adoption.
The stock’s P/B valuation has declined from a 12-month median of 9.59, but investors are still pricing in substantial long-term growth potential that the company has yet to fully demonstrate.
With a Zacks Rank of 3 (Hold), RGTI presents a speculative long-term opportunity, but investors should closely monitor system performance milestones, commercial adoption trends and revenue consistency before making any meaningful position changes.
