D-Wave Quantum QBTS or “D-Wave” has maintained a dual platform approach for the past five years, positioning itself as a one-stop shop for addressing a full range of complex customer problems. On the gate-model side, the company’s acquisition of Quantum Circuits in January has been a major development. The addition is expected to significantly accelerate the time to a scaled, error-corrected gate-model quantum computer, while complementing the company’s commercial annealing quantum computing systems.
Quantum Circuits brings dual-rail qubits that simplify and advance error correction, a key step to unlocking broad quantum utility. The technology allows D-Wave to achieve superconducting speed with the fidelity of ion trap or neutral atom approaches, putting it ahead of other gate-model vendors. This represents a fundamental improvement in key metrics like speed, error correction, overhead and scalability, wherein D-Wave holds advantages in each.
The company’s gate-model innovations also extend further. In January, D-Wave demonstrated that its proprietary on-chip cryogenic control, currently used in its Advantage quantum computers, can also be used to control gate-model qubits without loss of fidelity. This milestone advances the development of commercially viable gate-model quantum computers by providing a path to significantly reduce the wiring required to control large numbers of qubits.
D-Wave currently offers an 8-qubit gate-model system to select customers and plans to roll out a 17-qubit system later in 2026. Revenues from Quantum Compute as-a-Service (“QCaaS”) tied to its gate-model system are also expected to begin to generate this year, alongside a growing pipeline of system sales opportunities for delivery starting in 2027.
With commercial momentum for the Advantage2 annealing system continuing to accelerate, D-Wave’s gate-model offering is expected to deliver a modest but growing stream of revenue in 2026.
Latest News from QBTS Peers
Quantum Computing Inc. QUBT or “QCi” announced a joint demonstration of next-generation quantum secure communications at OFC 2026. The live demonstration showcases a comprehensive security architecture integrating quantum key distribution, quantum authentication, classical authentication and AES-256-GCM optical encryption. QCi also acquired NuCrypt, LLC, advancing quantum communications commercialization.
IBM IBM announced the completion of itsacquisition of Confluent, Inc., the data streaming platform used by more than 6,500 enterprises, including 40% of the Fortune 500, to power real-time operations. Together, IBM and Confluent provide a smart data platform that gives every AI model, agent and automated workflow the real-time data needed to operate across on-premises and hybrid cloud environments at scale.
Zacks Rundown for QBTS
Over the past year, QBTS shares have surged 93.8% against the industry’s 6.7% decline.
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In terms of valuation, D-Wave is trading at a forward three-year Price/Sales (P/S) of 111.11X, far above its median and industry average.
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Here is how QBTS’s earnings estimates are trending right now.
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D-Wave currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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