D-Wave Quantum QBTS entered the third quarter with a key focus on converting its strong booking pipeline into reported revenues. First-half bookings reached $35.5 million, up 1,120% year over year, while production applications accounted for 37.3% of first-half QCaaS revenues.
On Sept. 8, the company entered into a definitive agreement with the U.S. Department of Commerce, building on its previously announced Letter of Intent. The agreement provides D-Wave access to up to $100 million in funding under the U.S. CHIPS and Science Act, supporting its efforts to advance domestic quantum computing capabilities.
On Aug. 5, D-Wave also reported a research advance published in Nature involving its superconducting dual-rail architecture and quantum error correction. This development adds to the company’s ongoing efforts to advance its quantum computing architecture and improve the reliability and scalability of its systems.
Meanwhile, on Jul. 27, D-Wave and AT&T (T) signed an agreement to expand AT&T’s use of D-Wave’s quantum computing technology. In early work, AT&T reduced network optimization processing time from approximately one hour to less than 15 seconds using D-Wave’s quantum technology, highlighting the potential of quantum computing to improve the efficiency of complex network-related processes.
Peer Update
IonQ IONQ entered the third quarter with a significant change in its financial outlook. It completed the SkyWater acquisition on July 31, adding semiconductor manufacturing and advanced packaging capabilities to its quantum platform. IonQ updated its 2026 revenue outlook to $450-$460 million, including SkyWater's contribution from the acquisition date through year-end. The company also launched its Superion 256 platform, with first customer deliveries expected in 2027.
Rigetti’s RGTI third-quarter growth is likely to be driven primarily by government-backed technology investment and efforts to strengthen its commercialization infrastructure, rather than near-term revenue acceleration. In September, the Commerce Department finalized up to $100 million in CHIPS R&D funding for the company, supporting the development of superconducting quantum computing, including fabrication and related technologies. Rigetti also established a dedicated Systems Delivery organization in August to support and scale on-premises customer deployments.
QBTS’ Price Performance
Over the past year, QBTS’ shares have lost 55.3% compared with the broader Internet Software industry’s 3.9% decline.
Image Source: Zacks Investment Research
QBTS’ Expensive Valuation
QBTS currently trades at a forward 12-month Price-to-Sales (P/S) of 81.42X compared with the industry average of 4.40X.
Image Source: Zacks Investment Research
QBTS Stock Estimate Trend
In the past 30 days, the company’s loss per share estimate for 2026 has remained unchanged.
Image Source: Zacks Investment Research
QBTS stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
D-Wave Quantum Inc. (QBTS): Free Stock Analysis Report
IonQ, Inc. (IONQ): Free Stock Analysis Report
Rigetti Computing, Inc. (RGTI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).