Dear Rigetti Computing Stock Fans, Mark Your Calendars for November 10
Quantum computing company Rigetti Computing (RGTI) is set to report its third-quarter results on Nov. 10, after the market closes. The company is navigating a quantum computing sector under pressure from high valuations, heavy spending, and a long wait for profits.
In September, Rigetti received a definitive agreement for a $100 million award from the U.S. government to accelerate superconducting quantum computing research under the CHIPS Act. Additionally, its Indian subsidiary is on track to supply a 108-qubit system for the Centre for Development of Advanced Computing (C-DAC), with an $8.4 million purchase order. Finally, most recently, reports came out that the company’s hardware powered FirstQFM's new quantum reservoir computing system for financial forecasting, showing a real financial use case.
Against this backdrop, let's take a closer look at Rigetti Computing as the company gears up for its Q3 report.
About Rigetti Computing Stock
Rigetti Computing is a quantum computing company headquartered in Berkeley, California. The firm builds quantum computers and the superconducting quantum processors that power them. Its operations include designing and making quantum chips, building quantum systems, and providing cloud access through its Quantum Cloud Services platform. Customers can use the company's computers for research, development, and other advanced computing tasks. The firm also sells on-site quantum systems and provides related software and support. Rigetti Computing has a market capitalization of $3.9 billion.
As investors have revalued the company based on its small revenue and large ongoing losses, RGTI stock has dropped sharply. Over the past 52 weeks, the stock has declined 62%. Shares are also down 31% over the past six months. Rather than a company-specific issue, the broader quantum-computing theme has weakened, and investors have become more selective about companies still years away from broad commercial profitability. RGTI stock reached a 52-week low of $9.19 on Nov. 5 but is now up 41% from that level.
Still, RGTI stock is sitting at an overly stretched valuation. For example, its price-to-sales (P/S) ratio of 463 times is significantly higher than the industry average.
Rigetti Computing Reported Q2 Results Amid Growing Commercial Momentum
Rigetti Computing's Q2 results showed growing commercial momentum in its quantum operations. Revenue jumped 185% year-over-year (YOY) to $5.14 million, while total gross profit grew substantially from $566,000 to $2.19 million over the same period.
However, losses are growing as the company continues to invest aggressively in its business. In Q2, loss from operations grew to $28.06 million, while Rigetti's loss per share climbed to $0.16. Its non-GAAP loss per share was $0.05. For the six months ended June 30, the company's cash and cash equivalents decreased by 51% YOY to $27.76 million.
Rigetti Computing also highlighted its operations during the quarter. The company is set to provide a 9-qubit Novera quantum computing system to the Pittsburgh Supercomputing Center’s new TangleLab testbed. The project expands on Rigetti’s partnership with Hewlett Packard Enterprise (HPE) to help bring quantum-enabled high-performance computing (HPC) systems to market.
However, Wall Street analysts are not that optimistic about Rigetti’s bottom-line trajectory. For fiscal 2026, loss per share is projected to deepen by 53% YOY to $0.26, followed by another 12% increase to a $0.29 loss in fiscal 2027. For Q3, loss per share is expected to worsen significantly YOY to $0.08.
What Do Analysts Think About Rigetti Computing Stock?
Ahead of the earnings, B. Riley analyst Craig Ellis cut several price targets in the quantum and artificial intelligence (AI) space, with RGTI stock being one of them. Ellis lowered his Rigetti Computing stock price target from $35 to $25 while keeping a “Buy” rating. However, the analyst also believes that Q3 earnings will mark an earnings trough, with the bigger catalyst arriving in Q4 through revenue recognition from the C-DAC system.
Overall, Wall Street analysts have a consensus “Moderate Buy” rating for RGTI stock. Of the 12 analysts covering the stock, seven have a “Strong Buy” rating, one has a “Moderate Buy,” and four have a “Hold.” The average price target of $26.50 represents potential upside of 104% from current levels, while the Street-high price target of $40 indicates a possible 208% climb from here.
On the date of publication, Anushka Dutta did not directly have a position in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.