Rigetti Computing (RGTI) is back in the spotlight after delivering second-quarter 2026 results that showed meaningful revenue growth alongside persistent financial losses.
Revenues surged 185% year over year to $5.1 million, driven primarily by on-premises Novera QPU sales to commercial organizations.
Management pointed to progress on the 108-qubit Cepheus-1 system, expanding customer engagement, and strategic collaborations with HPE and the Pittsburgh Supercomputing Center as key growth signals.
The U.S. Department of Commerce has selected Rigetti for a potential award of up to $100 million over three years to accelerate superconducting quantum computing research and development, though the agreement has not yet been finalized.
Despite the revenue momentum, operating expenses rose sharply to $30.3 million in the second quarter, up from $20.4 million a year earlier, resulting in an operating loss of $28.1 million.
Rigetti’s adjusted net loss widened to approximately $16 million, or 5 cents per share, compared with $13.3 million in the same period a year ago.
The company’s 36-qubit system achieved a 99.6% median two-qubit gate fidelity in the second quarter, up from 99.5% in the first quarter, with those design improvements now being incorporated into the 108-qubit platform.
Management remains focused on reaching roughly 1,000 qubits, 99.9% two-qubit gate fidelity, and sub-40-nanosecond gate speeds within approximately three years, with coherence time improvements also targeted.
Rigetti ended the second quarter with $541.3 million in cash, cash equivalents, and investments, carrying no debt, which provides financial flexibility to fund its long-term technology roadmap.
Year-to-date, RGTI shares have fallen 20.4%, making it the second-worst performer among quantum computing peers, trailing only D-Wave Quantum (QBTS), which has declined 22.8% over the same period.
IonQ (IONQ) has fared better among sector peers, losing just 5.3% year-to-date, while Quantum Computing Inc. (QUBT) has declined 13% over the same stretch.
The broader Zacks Internet Software industry has slipped only 3.1% year-to-date, outperforming all four quantum computing stocks by a notable margin.
Rigetti’s stock carries a Value Score of F, with shares currently trading at a price-to-book ratio of 10.05X, well above the industry average of 4.98X.
Full-year 2026 revenue is expected to improve by 257.3%, though the company is projected to remain unprofitable, with loss per share estimates reflecting a 71.9% year-over-year improvement.
Revenues remain dependent on the timing of large system deliveries and government-funded projects, which management acknowledged creates ongoing volatility in quarterly results.
Commercial customers are still largely using Rigetti’s systems for research, algorithm development, and experimentation rather than practical production workloads, limiting near-term revenue predictability.
Rigetti expects to recognize revenues from its $8.4 million C-DAC order for a 108-qubit system in the fourth quarter, which could provide a meaningful near-term revenue catalyst.
The company also expects to deliver a 9-qubit Novera system into an HPE-powered supercomputing environment as part of its expanded collaboration with HPE and the Pittsburgh Supercomputing Center, with delivery targeted for 2027.
Rigetti carries a Zacks Rank of 3 (Hold), suggesting investors may want to wait for stronger evidence of commercial adoption and continued technology improvements before taking a more aggressive position.
The second-quarter results reinforce the long-term opportunity in quantum computing but also underscore that meaningful commercialization remains several years away for RGTI shareholders.
