The contrasting market reactions followed D-Wave’s results before Tuesday’s opening bell and Rigetti’s earnings release after the close. Investors are assessing whether government funding and expanding quantum computing capabilities can support commercial growth.
Why Did D-Wave Stock Recover Despite a Wider Loss?
D-Wave reported third-quarter revenue of $4.51 million, up 21% from $3.74 million a year earlier and ahead of analyst expectations of approximately $4.33 million to $4.37 million.
The company posted a loss of $0.13 per share, compared with expectations for a loss of approximately $0.10. Operating expenses increased 84% to $55.9 million, while adjusted EBITDA losses widened to $37.7 million.
Revenue growth came primarily from professional services and quantum computing as a service (QCaaS), which increased by $1.5 million and $800,000, respectively. System sales revenue declined by $1.5 million.
That change in revenue composition reduced gross margin to 52.9%, compared with 71.4% a year earlier, demonstrating that higher sales did not translate into stronger operating profitability.
Bookings presented a more complicated picture. D-Wave reported $37.4 million in bookings for the first nine months of 2026, an increase of 611% from the corresponding period last year. However, third-quarter bookings declined 19% to $1.9 million.
Remaining performance obligations reached $38.3 million, up 1,221% year over year. Approximately 59% of that contracted revenue is expected to be recognized within the following 12 months.
As FinanceFeeds reported following Tuesday’s results, D-Wave shares initially dropped approximately 11% as investors focused on weaker quarterly bookings and rising expenses.
Investor Takeaway
D-Wave’s $38.3 million backlog provides visibility into potential future revenue, but bookings are not equivalent to recognized sales. The company’s ability to deliver systems and expand recurring QCaaS revenue will determine how much of its commercial pipeline translates into financial performance.
Why Did Rigetti’s Revenue Miss Raise Concerns?
Rigetti reported third-quarter revenue of $1.4 million, approximately 60% below analyst expectations of $3.5 million and down roughly 28% from $1.95 million a year earlier.
Its adjusted loss reached $0.06 per share, compared with expectations for a $0.05 loss. Operating losses widened to $33.2 million from $20.5 million in the corresponding quarter of 2025.
Despite the quarterly decline, revenue for the first nine months increased approximately 110% to $10.9 million.
Management maintained its expectation for approximately $20 million in full-year revenue, contingent on customer acceptance of a quantum computing system ordered by India’s Centre for Development of Advanced Computing (C-DAC).
Meeting that target would require approximately $9.1 million in fourth-quarter revenue, more than six times the amount generated in the third quarter.
The timing of customer acceptance is therefore critical. A delay beyond December could push associated revenue recognition into 2027 and leave Rigetti below its annual target.
On the technology side, the company reported achieving 99.5% median two-qubit gate fidelity on its 108-qubit Cepheus-1 system. Its next major objective is a system exceeding 300 qubits with approximately 99.7% fidelity by mid-2028.
Rigetti finished September with $497.1 million in cash and investments and no debt, giving it substantial resources to continue development.
However, the financial results demonstrate the gap between engineering milestones and commercial sales. Earlier FinanceFeeds analysis of Rigetti’s valuation also examined how heavily the stock depends on future technical and commercial execution rather than existing revenue.
Investor Takeaway
Rigetti’s immediate revenue outlook is heavily dependent on a single customer acceptance milestone. Its substantial cash reserves reduce near-term financing pressure, but they do not eliminate the risk of delayed revenue recognition or continued operating losses.
How Much Support Will the $100 Million CHIPS Agreements Provide?
Both companies signed definitive agreements with the U.S. Department of Commerce in September for access to up to $100 million each under the CHIPS and Science Act.
The funding supports research into superconducting quantum computing systems, including improvements in hardware architecture, materials, cryogenic infrastructure and system scalability.
However, the awards are subject to specified milestones and conditions. They should not be treated as unrestricted cash already received by either company.
Rigetti disclosed that the government received a minority, non-controlling equity stake as a condition of its agreement.
The funding may help offset development requirements, but both companies remain exposed to substantial research expenses and uncertain commercialization schedules.
What Should Quantum Computing Investors Watch Next?
The earnings reports reinforced differences between companies that are frequently grouped together as a single investment theme.
D-Wave has a larger reported backlog and growing quarterly revenue, although its expenses remain considerable. Rigetti has demonstrated improved technical performance but faces a concentrated fourth-quarter revenue target.
The divergence follows a difficult year for both stocks, with Rigetti and D-Wave down approximately 47% and 59%, respectively, year to date based on Wednesday’s early trading figures.
Other quantum-related shares, including IonQ and Infleqtion, fluctuated during the session. Previous FinanceFeeds comparisons of quantum computing valuations have examined the substantial differences in revenue, cash positions and market expectations across the sector.
Investor Takeaway
The next critical developments are Rigetti’s C-DAC customer acceptance, D-Wave’s conversion of contracted revenue into sales and the timing of government funding disbursements. Technical achievements and federal support remain important, but investors are increasingly measuring quantum computing companies against revenue delivery and operating costs.
