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RGTI Stock Plunges 41% in a Month: Should Investors Hold or Fold?
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Key Takeaways
RGTI slides as softer revenues and losses drive the steepest monthly drop among key quantum peers.
RGTI highlights government contracts, global partnerships and hardware advances as long-term supports.
RGTI targets larger, higher-fidelity systems through 2027, while near-term revenue visibility stays limited.
Rigetti Computing (RGTI - Free Report) has come under renewed pressure, with shares sliding 41% over the past month as investors digest a mix of progress and persistent challenges. The company’s latest earnings showed lower revenues and continued losses, highlighting that meaningful commercial traction is still developing despite improvements in efficiency and ongoing technical and partnership advancements. While government and research contracts continue to validate Rigetti’s capabilities, they offer limited visibility into steady, recurring growth, a key concern weighing on near-term sentiment.
At the same time, Rigetti has continued to push ahead on strategic and technical fronts, including advancements in its quantum hardware roadmap and expansion of global partnerships. These initiatives reinforce its long-term ambitions in hybrid quantum computing, but with near-term financial headwinds and heightened market volatility, investors are now questioning whether the recent pullback presents an opportunity or a warning sign.
Rigetti’s sharp pullback comes at a time when competition in the quantum space is only getting tougher. IonQ (IONQ - Free Report) is pressing ahead with upgrades to its trapped-ion systems and expanding its commercial footprint through new partnerships. D-Wave Quantum (QBTS - Free Report) continues to double down on enterprise-focused annealing solutions, pitching its technology as a practical tool for real-world optimization problems. Quantum Computing Inc. (QUBT - Free Report) is also pushing for relevance with its quantum-enabled software stack and niche industry applications. In this competitive landscape, Rigetti’s hardware roadmap and global collaborations still give it a differentiated long-term angle, but the recent slide shows that investors are becoming more cautious about near-term execution.
RGTI Shares Price Performance
RGTI shares have plunged 40.6% over the past month, marking the steepest decline among key quantum peers. QBTS and QUBT have plummeted 33.4% and 28.6%, respectively. IonQ has held up relatively better but is still lower by 18.1% during the same period. In comparison, the Zacks Internet – Software industry has declined a more modest 13.1%.
This underperformance clearly shows that Rigetti has been hit harder than the rest of the group, with the market reacting more sharply to its recent financial results and execution risks.
Image Source: Zacks Investment Research
Why Investors May Still Consider Holding RGTI
Steady Pipeline of Contracts and Government Backing: Even with the recent downturn, Rigetti continues to secure meaningful government and research-driven contracts that keep it anchored in real-world quantum development. Recent awards tied to hybrid quantum-classical work for defense applications reinforce the company’s role as a technical partner in high-stakes projects. These programs may not yet deliver recurring revenue at scale, but they strengthen Rigetti’s credibility and provide a stable base of engagement as the broader quantum market evolves.
Expanding Global Partnerships and Ecosystem Presence: Rigetti’s collaboration strategy remains one of its strongest long-term assets. Its alliance with India’s C-DAC gives the company exposure to a rapidly expanding quantum hub, while ongoing U.S. academic and institutional partnerships broaden access to testing environments and early adopters. These relationships are laying the groundwork for future commercial pathways and help keep Rigetti top-of-mind in global hybrid quantum development. For investors, this growing ecosystem support adds depth to the company’s long-term narrative.
Clear Progress on Hardware Roadmap and Future Systems: On the technology front, Rigetti continues to advance its modular, chiplet-based architecture. The recent Cepheus-1-36Q system showcased meaningful improvements in two-qubit fidelity and error reduction, a critical milestone in scalable quantum design. Looking ahead, the company expects to deploy a 150+ qubit system by the end of 2026 with 99.7% median two-qubit gate fidelity, followed by a 1,000+ qubit system by the end of 2027, targeted at 99.8% fidelity. These roadmap commitments give investors clearer visibility into Rigetti’s multi-year engineering direction, even if commercialization remains a medium-term challenge.
RGTI’s Sales & EPS Growth
In 2025, Rigetti is expected to experience a 23.8% decline in revenues. On the profitability front, earnings per share are expected to remain negative, declining 88.9% year over year.
Image Source: Zacks Investment Research
A Key Challenge for RGTI
Bridging the Gap Between Innovation and Revenue: The company continues to face a steep challenge: turning innovation into sustainable revenue. In the third quarter of 2025, Rigetti reported total revenues of $1.9 million, down 18.1% year over year. The operating loss for the period was $20.5 million, and the adjusted loss per share was 3 cents. A large portion of the income is still derived from government and research contracts, useful for credibility, but limited in terms of recurring, enterprise-scale revenue. For investors, the next big step will be whether Rigetti can translate its technical promise and strategic wins into repeatable sales, enterprise deployments and a clearer revenue ramp.
RGTI Shares Look Overvalued
Rigetti’s stock is not so cheap, as suggested by the Value Score of F.
RGTI is currently trading at a price-to-book (P/B) ratio of 22.41X, which is higher than the industry average of 5.37X.
RGTI's Price-to-Book Ratio
Image Source: Zacks Investment Research
How to Play Rigetti’s Stock Now?
Rigetti remains an intriguing but highly speculative name in the quantum computing space. The company continues to advance its hardware roadmap, strengthen global partnerships and secure government-backed projects, all of which support its long-term vision. However, revenue softness, widening losses and limited visibility into scalable commercial adoption keep the near-term outlook uncertain.
With a Zacks Rank #3 (Hold), the stock may be better suited for investors willing to wait for clearer signs of revenue momentum, enterprise traction and progress toward its 2026–2027 system milestones. For existing shareholders, patience, rather than aggressive action, may be the more balanced approach as Rigetti works to convert its technological promise into meaningful, recurring growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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RGTI Stock Plunges 41% in a Month: Should Investors Hold or Fold?
Key Takeaways
Rigetti Computing (RGTI - Free Report) has come under renewed pressure, with shares sliding 41% over the past month as investors digest a mix of progress and persistent challenges. The company’s latest earnings showed lower revenues and continued losses, highlighting that meaningful commercial traction is still developing despite improvements in efficiency and ongoing technical and partnership advancements. While government and research contracts continue to validate Rigetti’s capabilities, they offer limited visibility into steady, recurring growth, a key concern weighing on near-term sentiment.
At the same time, Rigetti has continued to push ahead on strategic and technical fronts, including advancements in its quantum hardware roadmap and expansion of global partnerships. These initiatives reinforce its long-term ambitions in hybrid quantum computing, but with near-term financial headwinds and heightened market volatility, investors are now questioning whether the recent pullback presents an opportunity or a warning sign.
Rigetti’s sharp pullback comes at a time when competition in the quantum space is only getting tougher. IonQ (IONQ - Free Report) is pressing ahead with upgrades to its trapped-ion systems and expanding its commercial footprint through new partnerships. D-Wave Quantum (QBTS - Free Report) continues to double down on enterprise-focused annealing solutions, pitching its technology as a practical tool for real-world optimization problems. Quantum Computing Inc. (QUBT - Free Report) is also pushing for relevance with its quantum-enabled software stack and niche industry applications. In this competitive landscape, Rigetti’s hardware roadmap and global collaborations still give it a differentiated long-term angle, but the recent slide shows that investors are becoming more cautious about near-term execution.
RGTI Shares Price Performance
RGTI shares have plunged 40.6% over the past month, marking the steepest decline among key quantum peers. QBTS and QUBT have plummeted 33.4% and 28.6%, respectively. IonQ has held up relatively better but is still lower by 18.1% during the same period. In comparison, the Zacks Internet – Software industry has declined a more modest 13.1%.
This underperformance clearly shows that Rigetti has been hit harder than the rest of the group, with the market reacting more sharply to its recent financial results and execution risks.
Image Source: Zacks Investment Research
Why Investors May Still Consider Holding RGTI
Steady Pipeline of Contracts and Government Backing: Even with the recent downturn, Rigetti continues to secure meaningful government and research-driven contracts that keep it anchored in real-world quantum development. Recent awards tied to hybrid quantum-classical work for defense applications reinforce the company’s role as a technical partner in high-stakes projects. These programs may not yet deliver recurring revenue at scale, but they strengthen Rigetti’s credibility and provide a stable base of engagement as the broader quantum market evolves.
Expanding Global Partnerships and Ecosystem Presence: Rigetti’s collaboration strategy remains one of its strongest long-term assets. Its alliance with India’s C-DAC gives the company exposure to a rapidly expanding quantum hub, while ongoing U.S. academic and institutional partnerships broaden access to testing environments and early adopters. These relationships are laying the groundwork for future commercial pathways and help keep Rigetti top-of-mind in global hybrid quantum development. For investors, this growing ecosystem support adds depth to the company’s long-term narrative.
Clear Progress on Hardware Roadmap and Future Systems: On the technology front, Rigetti continues to advance its modular, chiplet-based architecture. The recent Cepheus-1-36Q system showcased meaningful improvements in two-qubit fidelity and error reduction, a critical milestone in scalable quantum design. Looking ahead, the company expects to deploy a 150+ qubit system by the end of 2026 with 99.7% median two-qubit gate fidelity, followed by a 1,000+ qubit system by the end of 2027, targeted at 99.8% fidelity. These roadmap commitments give investors clearer visibility into Rigetti’s multi-year engineering direction, even if commercialization remains a medium-term challenge.
RGTI’s Sales & EPS Growth
In 2025, Rigetti is expected to experience a 23.8% decline in revenues. On the profitability front, earnings per share are expected to remain negative, declining 88.9% year over year.
Image Source: Zacks Investment Research
A Key Challenge for RGTI
Bridging the Gap Between Innovation and Revenue: The company continues to face a steep challenge: turning innovation into sustainable revenue. In the third quarter of 2025, Rigetti reported total revenues of $1.9 million, down 18.1% year over year. The operating loss for the period was $20.5 million, and the adjusted loss per share was 3 cents. A large portion of the income is still derived from government and research contracts, useful for credibility, but limited in terms of recurring, enterprise-scale revenue. For investors, the next big step will be whether Rigetti can translate its technical promise and strategic wins into repeatable sales, enterprise deployments and a clearer revenue ramp.
RGTI Shares Look Overvalued
Rigetti’s stock is not so cheap, as suggested by the Value Score of F.
RGTI is currently trading at a price-to-book (P/B) ratio of 22.41X, which is higher than the industry average of 5.37X.
RGTI's Price-to-Book Ratio
Image Source: Zacks Investment Research
How to Play Rigetti’s Stock Now?
Rigetti remains an intriguing but highly speculative name in the quantum computing space. The company continues to advance its hardware roadmap, strengthen global partnerships and secure government-backed projects, all of which support its long-term vision. However, revenue softness, widening losses and limited visibility into scalable commercial adoption keep the near-term outlook uncertain.
With a Zacks Rank #3 (Hold), the stock may be better suited for investors willing to wait for clearer signs of revenue momentum, enterprise traction and progress toward its 2026–2027 system milestones. For existing shareholders, patience, rather than aggressive action, may be the more balanced approach as Rigetti works to convert its technological promise into meaningful, recurring growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.