D-Wave Quantum (QBTS) expects second-quarter 2026 revenues to come in modestly above first-quarter levels, with the bulk of annual revenues likely landing in the second half of the year.
The timing pattern stems from how the company recognizes revenue on systems transactions, its remaining performance obligations, and the shape of its broader sales pipeline.
System sales at D-Wave typically require site preparation, delivery, installation, and calibration before any unit becomes fully operational, a process that can span several months or multiple quarters.
The company recognizes a significant portion of revenues at the point of physical delivery, while a smaller portion is recognized progressively as installation and calibration work advances.
First-quarter 2026 revenues fell 81% year over year to $2.9 million, a steep drop explained by the prior-year period including $12.6 million from the first-ever sale of a D-Wave annealing quantum computer system.
Despite the revenue dip, first-quarter Bookings surged to $33.4 million from just $1.6 million a year earlier, with commercial customers representing more than 31% of total Bookings.
The $20 million system sale to Florida Atlantic University led contributions from educational and research organizations, which accounted for the remainder of first-quarter Bookings.
D-Wave’s sales opportunity pipeline more than doubled in dollar value during the first quarter compared with the prior quarter, and the average potential deal size also more than doubled.
As of March 31, remaining performance obligations tied to unsatisfied or partially unsatisfied customer contracts totaled $42.4 million, up 563% from the first-quarter 2025 balance.
Approximately 54% of that RPO balance is expected to convert to recognized revenues within the next 12 months, with 71% expected within two years and the remainder thereafter.
On the competitive front, IBM (IBM) signed a definitive agreement to acquire HRL Laboratories, LLC, a private company jointly owned by Boeing and General Motors, to strengthen its quantum computing ambitions.
HRL’s silicon-spin qubit engineering expertise is expected to accelerate IBM’s push to scale increasingly powerful quantum computers, with both superconducting and spin qubits offering credible paths to broader quantum technology scaling.
Intel (INTC) posted a strong second-quarter 2026, reporting revenues up 25% year over year, marking its strongest revenue growth in more than 15 years.
Intel’s Xeon 6 processor continues to be one of the fastest ramping products in the company’s history, while its newly announced design services business saw revenues nearly triple year over year.
Over the past year, QBTS shares have declined 9%, compared with an industry decline of 17.6%, and the stock currently carries a Zacks Rank of 2, or Buy.
