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The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $2.46 million, indicating a decline of 19.34% year over year.
The consensus mark for earnings is currently pegged at a loss of 5 cents per share, unchanged over the past 30 days. The company reported a loss of 14 cents in the year-ago quarter.
RGTI earnings beat the Zacks Consensus Estimate once in the past four quarters while matching the same on two occasions and missing on one, with a negative average surprise of 11.25% (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Rigetti Computing, Inc. Stock Price and EPS Surprise
Let’s see how things have shaped up prior to this announcement.
Key Factors to Consider for RGTI Q1 Earnings
RGTI’s focus on developing high-fidelity Quantum Processor Units and expanding its market presence through partnerships and new customer acquisitions, particularly in government and international markets, is expected to have driven growth in the to-be-reported quarter.
The ongoing collaboration with Quanta Computer is expected to have driven advancements in Rigetti’s quantum computing technology in the to-be-reported quarter. With both companies investing more than $100 million, this partnership could lead to enhanced development and commercialization of superconducting quantum systems.
The launch of Rigetti’s 84-qubit Ankaa-3 quantum computer, which has improved performance, is likely to have attracted more customers in the to-be-reported quarter. The availability of this system through major cloud platforms, such as Microsoft (MSFT - Free Report) Azure and Amazon (AMZN - Free Report) Braket, could further expand its reach. The system will allow users to leverage Amazon and Microsoft platforms for quantum computing innovation.
The integration of AI-driven calibration tools is expected to have improved the efficiency and performance of Rigetti’s quantum systems in the quarter to be reported, making them more reliable for customers and potentially attracting more business.
RGTI Shares Underperform Sector, Industry
RGTI shares have plunged 32.5% in the year-to-date period compared with the Zacks Internet - Software industry’s decline of 1.2% and the broader Zacks Computer & Technology sector’s decrease of 9.2%.
The underperformance can be attributed to increasing macroeconomic challenges and U.S. President Donald Trump’s decision to impose tariffs on top trading partners, including China, Mexico and Canada, which has increased the chances of a trade war.
YTD RGTI Stock Performance
Image Source: Zacks Investment Research
RGTI Stock Trading at a Premium
RGTI stock is not so cheap, as suggested by the Value Score of F.
In terms of the forward 12-month Price/Sales ratio, RGTI is trading at 129.25X, higher than the Computer & Technology sector’s 5.69X.
Price/Sales Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
RGTI’s Benefits From Expanding Clientele
RGTI’s expanding clientele, which includes Amazon, Microsoft, Riverlane, NVIDIA (NVDA - Free Report) and Quantum Machines, further underscores its growing influence in the quantum computing space.
Rigetti’s announcement of the successful application of AI, in collaboration with Quantum Machines, to automate the calibration of its 9-qubit Novera QPU has been noteworthy.
This was achieved by leveraging NVIDIA DGX Quantum, enabling high gate fidelities and marking a significant advancement in quantum computing operations. Benefits from the partnership with NVIDIA and Quantum Machines are likely to have been reflected in the to-be-reported quarter’s performance.
As the quantum computing market continues to evolve, RGTI is poised to benefit from its growth. Per a Grand View Research report, the global quantum computing market was valued at approximately USD 1.42 billion in 2024 and is projected to expand at a compound annual growth rate of 20.5% from 2025 to 2030. This bodes well for RGTI’s prospects.
Rigetti Suffers From Quantum Market Challenges
Rigetti’s advancements in the quantum computing space are continuously benefiting the company’s top-line growth.
However, challenging macroeconomic uncertainties and intense competition in the rapidly evolving and highly competitive quantum computing market are expected to have negatively impacted the company’s top-line growth. These challenges are further compounded by recent remarks from influential industry leaders.
Meta CEO Mark Zuckerberg and NVIDIA CEO Jensen Huang have both expressed doubts about the near-term practical applications of quantum computing, suggesting it may take decades to become commercially viable. The concerns raised by these high-profile CEOs have contributed to a market downturn affecting Rigetti in the quantum computing industry.
RGTI Shares – Buy, Sell or Hold?
Rigetti’s advancements in quantum processors and modular chip architecture will benefit the company.
However, stretched valuation, along with stiff competition, is expected to drag down RGTI shares in the near term.
Image: Bigstock
Should You Buy, Hold, or Sell RGTI Stock Before Q1 Earnings?
Rigetti Computing (RGTI - Free Report) is set to report first-quarter 2025 results on May 12.
The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $2.46 million, indicating a decline of 19.34% year over year.
The consensus mark for earnings is currently pegged at a loss of 5 cents per share, unchanged over the past 30 days. The company reported a loss of 14 cents in the year-ago quarter.
RGTI earnings beat the Zacks Consensus Estimate once in the past four quarters while matching the same on two occasions and missing on one, with a negative average surprise of 11.25% (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Rigetti Computing, Inc. Stock Price and EPS Surprise
Rigetti Computing, Inc. price-eps-surprise | Rigetti Computing, Inc. Quote
Let’s see how things have shaped up prior to this announcement.
Key Factors to Consider for RGTI Q1 Earnings
RGTI’s focus on developing high-fidelity Quantum Processor Units and expanding its market presence through partnerships and new customer acquisitions, particularly in government and international markets, is expected to have driven growth in the to-be-reported quarter.
The ongoing collaboration with Quanta Computer is expected to have driven advancements in Rigetti’s quantum computing technology in the to-be-reported quarter. With both companies investing more than $100 million, this partnership could lead to enhanced development and commercialization of superconducting quantum systems.
The launch of Rigetti’s 84-qubit Ankaa-3 quantum computer, which has improved performance, is likely to have attracted more customers in the to-be-reported quarter. The availability of this system through major cloud platforms, such as Microsoft (MSFT - Free Report) Azure and Amazon (AMZN - Free Report) Braket, could further expand its reach. The system will allow users to leverage Amazon and Microsoft platforms for quantum computing innovation.
The integration of AI-driven calibration tools is expected to have improved the efficiency and performance of Rigetti’s quantum systems in the quarter to be reported, making them more reliable for customers and potentially attracting more business.
RGTI Shares Underperform Sector, Industry
RGTI shares have plunged 32.5% in the year-to-date period compared with the Zacks Internet - Software industry’s decline of 1.2% and the broader Zacks Computer & Technology sector’s decrease of 9.2%.
The underperformance can be attributed to increasing macroeconomic challenges and U.S. President Donald Trump’s decision to impose tariffs on top trading partners, including China, Mexico and Canada, which has increased the chances of a trade war.
YTD RGTI Stock Performance
Image Source: Zacks Investment Research
RGTI Stock Trading at a Premium
RGTI stock is not so cheap, as suggested by the Value Score of F.
In terms of the forward 12-month Price/Sales ratio, RGTI is trading at 129.25X, higher than the Computer & Technology sector’s 5.69X.
Price/Sales Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
RGTI’s Benefits From Expanding Clientele
RGTI’s expanding clientele, which includes Amazon, Microsoft, Riverlane, NVIDIA (NVDA - Free Report) and Quantum Machines, further underscores its growing influence in the quantum computing space.
Rigetti’s announcement of the successful application of AI, in collaboration with Quantum Machines, to automate the calibration of its 9-qubit Novera QPU has been noteworthy.
This was achieved by leveraging NVIDIA DGX Quantum, enabling high gate fidelities and marking a significant advancement in quantum computing operations. Benefits from the partnership with NVIDIA and Quantum Machines are likely to have been reflected in the to-be-reported quarter’s performance.
As the quantum computing market continues to evolve, RGTI is poised to benefit from its growth. Per a Grand View Research report, the global quantum computing market was valued at approximately USD 1.42 billion in 2024 and is projected to expand at a compound annual growth rate of 20.5% from 2025 to 2030. This bodes well for RGTI’s prospects.
Rigetti Suffers From Quantum Market Challenges
Rigetti’s advancements in the quantum computing space are continuously benefiting the company’s top-line growth.
However, challenging macroeconomic uncertainties and intense competition in the rapidly evolving and highly competitive quantum computing market are expected to have negatively impacted the company’s top-line growth. These challenges are further compounded by recent remarks from influential industry leaders.
Meta CEO Mark Zuckerberg and NVIDIA CEO Jensen Huang have both expressed doubts about the near-term practical applications of quantum computing, suggesting it may take decades to become commercially viable. The concerns raised by these high-profile CEOs have contributed to a market downturn affecting Rigetti in the quantum computing industry.
RGTI Shares – Buy, Sell or Hold?
Rigetti’s advancements in quantum processors and modular chip architecture will benefit the company.
However, stretched valuation, along with stiff competition, is expected to drag down RGTI shares in the near term.
Currently, Rigetti carries a Zacks Rank #3 (Hold), implying that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.