Shares of D-Wave Quantum QBTS struggled from January to mid-May, falling 32.3% amid the uncertainty surrounding its pace of commercialization, uneven revenue recognition and rising competition across quantum computing. However, the sentiment changed sharply after the first-quarter 2026 release on May 19. Investors focused on record bookings growth of nearly 2,000% year over year, a rapidly expanding pipeline and remaining performance obligations jumping 563% to $42.4 million.
Since the first-quarter earnings release on May 19, the stock has gained 61.6% compared with the sector’s 2.3% rise.
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3 Factors Driving the Sharp Rally of D-Wave Stock
Record Bookings: As stated earlier, the biggest catalyst was D-Wave’s explosive bookings growth. First-quarter bookings surged 1,994% year over year to a record $33.4 million, supported by a $20 million system sale to Florida Atlantic University and a $10 million two-year QCaaS agreement with a Fortune 100 company. Remaining performance obligations climbed 563% year over year to $42.4 million, providing investors with improved future revenue visibility. The company also said its sales pipeline more than doubled sequentially during the quarter.
In the near term, revenue conversion from backlog, timing of system deliveries and whether D-Wave can sustain momentum in enterprise QCaaS contracts will be crucial. QBTS expects a substantial portion of 2026 revenues to be recognized in the second half of the year.
Quantum Circuits Acquisition: Another major driver was growing confidence in D-Wave’s dual-platform strategy after its acquisition of Quantum Circuits. This has positioned the company as the only quantum computing firm with both annealing and gate-model systems. The company unveiled a roadmap targeting approximately 175 physical qubits by 2028, 10 logical qubits by 2030 and 100 logical qubits by 2032.
Expanding Real-World Use Cases in AI and Blockchain: The rally was also fueled by evidence that D-Wave’s annealing systems are moving beyond research into commercial applications. The company disclosed that its collaboration with Shionogi produced a tenfold increase in desirable drug-like molecules versus classical machine learning approaches. D-Wave also launched a blockchain testnet with Postquant Labs, where its Advantage2 quantum system reportedly outperformed classical nodes in mining operations. Additionally, D-Wave introduced new hybrid solver tools integrating machine learning models into optimization workflows for applications such as pricing, logistics and workforce scheduling.
Overall, the company expects a major portion of 2026 revenues to be recognized in the second half of the year as large system deals progress toward delivery and installation. With $588 million in liquidity, a rapidly growing pipeline and increasing commercial use cases in AI, optimization and blockchain, D-Wave is aiming to strengthen its position as a leading dual-platform quantum computing company, though revenue timing and elevated operating expenses may continue to create volatility.
Risks Remain
Despite improving momentum, D-Wave still faces several risks that could pressure performance in the rest of 2026. Revenues remain highly dependent on the timing of large system sales, installations and customer acceptance milestones, creating potential quarterly volatility. The company also reported a wider adjusted EBITDA loss and significantly higher operating expenses following the Quantum Circuits acquisition and increased R&D investments. Competition across quantum computing remains intense, particularly from larger gate-model players with stronger financial resources. In addition, many of D-Wave’s AI, blockchain and optimization initiatives are still in early commercialization stages, meaning broader enterprise adoption and sustained profitability are yet to be fully proven at scale.
QBTS' 2026 Estimates Show Strong Growth Prospects
QBTS is projected to report 2026 earnings growth of 72.1% on revenue growth of 63.3% from the 2025 reported figure.
Sales and EPS Growth Rates (Y/Y%)
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QBTS's Valuation is Expensive
D-Wave’s forward 12-month price/sales (P/S) ratio of 179.30 is far above the sector average of 6.77X and also above IonQ’s IONQ 74.72X but below Rigetti Computing’s RGTI 244.38X.
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Buy, Sell or Hold QBTS?
QBTS expects most of 2026 revenues to be recognized in the second half of the year as large system deals progress toward delivery and installation. With $588 million in liquidity, a rapidly growing pipeline and increasing commercial use cases in AI, optimization and blockchain, D-Wave is aiming to strengthen its position as a major dual-platform quantum computing company, though revenue timing and elevated operating expenses may continue to create volatility. However, QBTS still faces execution risks tied to system-sale timing, backlog conversion and rising operating expenses following the Quantum Circuits acquisition. Competition in quantum computing also remains intense, with many commercial applications still emerging. Given strong growth potential but near-term volatility, existing investors may consider retaining the stock while monitoring execution and commercialization progress closely. QBTS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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