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Rigetti Stock Soars 151% in a Year: Is It Still Worth Holding in 2026?
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Key Takeaways
RGTI's shares surged 151% in a year but pulled back after weak Q3 revenue, margins and ongoing losses.
RGTI secured Air Force and on-prem system orders and reaffirmed plans for technological upgrades.
RGTI's revenues remain volatile, tied to government contracts, with lower gross margin and rising expenses.
Rigetti Computing (RGTI - Free Report) stock has delivered a staggering 151% gain over the past year, but recent price action suggests investors are reassessing how much upside remains. Shares have come under pressure following a softer third-quarter performance, marked by declining revenues, lower gross margins and continued operating losses. The company also failed to advance to DARPA’s Phase B in the Quantum Benchmarking Initiative, a setback that highlighted the gap between technical progress and external validation. While management emphasized that the decision was not performance-related, the miss added to near-term uncertainty around execution and visibility.
That said, Rigetti is not standing still. The company announced new on-premises system orders, secured a multi-year contract with the Air Force Research Laboratory and expanded partnerships across government, academic and industrial customers. Management reaffirmed its roadmap toward a 150-plus qubit system in 2026 and a 1,000-plus qubit platform by 2027, supported by its chiplet-based architecture. With nearly $600 million in cash and no debt, Rigetti has the balance sheet to fund R&D and pursue long-term milestones, even as revenues remain lumpy and heavily tied to a small number of contracts. This mix of financial strength and uneven commercialization keeps the investment case finely balanced.
Competition only adds to the complexity. IonQ (IONQ - Free Report) continues to gain traction with the trapped-ion technology and growing commercial pipeline, reinforcing its position as one of the better-capitalized players in the space. D-Wave Quantum (QBTS - Free Report) is focusing on near-term enterprise use cases through its annealing systems, aiming to monetize practical optimization workloads. Meanwhile, Quantum Computing Inc. (QUBT - Free Report) is positioning itself around software, photonics and government-oriented solutions, offering a different risk-reward profile. Against this backdrop, Rigetti’s differentiated hardware roadmap and ecosystem partnerships support a longer-term opportunity, but inconsistent execution and limited revenue scale remain a cause for concern.
RGTI’s Shares Price Performance
Over the past year, Rigetti Computing’s shares have climbed 151.1%, delivering strong gains that place the stock well ahead of the broader software universe and most quantum peers, though still short of the segment’s top performer. QBTS has been the clear standout, surging 395.1% on far stronger investor momentum. IONQ has posted a solid 64.6% advance, while QUBT has lagged with a more modest 17.5% rise. By comparison, the Zacks Internet-Softwarei ndustry has gained just 6.6% over the same period, underscoring that Rigetti’s rally has been substantial, even if it trails the category leader.
RGTI's Price Performance
Image Source: Zacks Investment Research
Why RGTI May Still Be a Hold Heading Into 2026
Government-Backed Demand Provides Revenue Support: Even amid near-term share price volatility, Rigetti continues to secure government and research-driven business that supports its medium-term outlook. The company landed a three-year, $5.8 million contract with the Air Force Research Laboratory to advance superconducting quantum networking, alongside $5.7 million in orders for two upgradable 9-qubit Novera systems. While the deals are unlikely to translate into large-scale recurring revenues in the near future, these reinforce Rigetti’s credibility in foundational quantum development and provide incremental revenue visibility as U.S. federal quantum funding, including the reinstated National Quantum Initiative, gradually stabilizes.
Expanding International and Academic Presence: Rigetti is also broadening its ecosystem through strategic partnerships that extend beyond immediate commercial returns. A new memorandum of understanding with India’s C-DAC aligns the company with a fast-growing, government-supported quantum initiative, potentially opening pathways for hybrid computing projects and co-development efforts. In parallel, Montana State University’s deployment of a 9-qubit Novera system marks Rigetti’s first academic on-premises installation, establishing a foothold for future research collaborations and system upgrades. These efforts, combined with Rigetti’s participation in NVIDIA’s NVQLink platform, strengthen its global footprint and help buffer the business as commercialization timelines stretch.
Roadmap Execution Remains the Core 2026 Catalyst: From a technology standpoint, Rigetti continues to make measurable progress on its chiplet-based architecture, supported by encouraging performance data from its existing 36-qubit system. Management reaffirmed plans to introduce a 100-plus qubit system with 99.5% median two-qubit fidelity and targets a 150-plus qubit system with 99.7% fidelity in 2026, followed by a 1,000-plus qubit platform in 2027, enabled by larger 36-qubit chiplets. Execution against these milestones will likely be central to whether investors remain patient with the stock into 2026.
RGTI’s Sales & EPS Growth
In 2025, Rigetti is expected to experience a 26.9%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
Key Challenge for RGTI
Revenue Volatility and Margin Compression Continue to Weigh: Rigetti’s biggest hurdle remains converting its technical milestones into a more durable and predictable revenue stream, a challenge clearly reflected in its third-quarter performance. Quarterly sales slipped to $1.9 million, marking an 18% year-over-year decline, largely due to the temporary funding gap tied to the National Quantum Initiative and the uneven cadence of government contract awards.
At the same time, profitability metrics deteriorated as gross margin compressed sharply to 21%, caused by a heavier mix of lower-margin contracts. Operating expenses climbed to $21 million, reflecting elevated R&D investment, higher compensation costs and increased stock-based pay. Taken together, the combination of soft revenues, margin pressure and rising expenses underscores that Rigetti’s business remains anchored to government and research programs, with broad-based commercial adoption still slow to materialize.
RGTI’s Shares Look Overvalued
Rigetti stock is not so cheap, as suggested by the Value Score of F.
It is currently trading at a price-to-book (P/B) ratio of 22.38X, which is higher than the industry average of 6.1X.
RGTI's Price-to-Book Ratio
Image Source: Zacks Investment Research
How to Approach RGTI Stock as the 2026-2027 Roadmap Unfolds
Rigetti remains an intriguing yet speculative name in the quantum computing space, supported by tangible progress on its long-term technology roadmap but weighed down by an unsettled financial profile. The company continues to advance toward larger, higher-fidelity systems while strengthening ties with government, academic and ecosystem partners, including efforts around hybrid quantum-AI integration. At the same time, weak third-quarter revenues, margin compression and rising operating expenses underscore the execution risks that continue to shape the near-term narrative.
With a Zacks Rank #3 (Hold), RGTI appears better positioned as a monitoring candidate rather than an aggressive accumulation story. The 2026-2027 period will be critical, as investor confidence will increasingly depend on Rigetti’s ability to translate its hardware milestones into broader enterprise adoption, improved system economics and more consistent revenue generation. For existing shareholders, a patient, measured approach may be suited as the company works to bridge the gap between technological advancement and sustainable commercial growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Rigetti Stock Soars 151% in a Year: Is It Still Worth Holding in 2026?
Key Takeaways
Rigetti Computing (RGTI - Free Report) stock has delivered a staggering 151% gain over the past year, but recent price action suggests investors are reassessing how much upside remains. Shares have come under pressure following a softer third-quarter performance, marked by declining revenues, lower gross margins and continued operating losses. The company also failed to advance to DARPA’s Phase B in the Quantum Benchmarking Initiative, a setback that highlighted the gap between technical progress and external validation. While management emphasized that the decision was not performance-related, the miss added to near-term uncertainty around execution and visibility.
That said, Rigetti is not standing still. The company announced new on-premises system orders, secured a multi-year contract with the Air Force Research Laboratory and expanded partnerships across government, academic and industrial customers. Management reaffirmed its roadmap toward a 150-plus qubit system in 2026 and a 1,000-plus qubit platform by 2027, supported by its chiplet-based architecture. With nearly $600 million in cash and no debt, Rigetti has the balance sheet to fund R&D and pursue long-term milestones, even as revenues remain lumpy and heavily tied to a small number of contracts. This mix of financial strength and uneven commercialization keeps the investment case finely balanced.
Competition only adds to the complexity. IonQ (IONQ - Free Report) continues to gain traction with the trapped-ion technology and growing commercial pipeline, reinforcing its position as one of the better-capitalized players in the space. D-Wave Quantum (QBTS - Free Report) is focusing on near-term enterprise use cases through its annealing systems, aiming to monetize practical optimization workloads. Meanwhile, Quantum Computing Inc. (QUBT - Free Report) is positioning itself around software, photonics and government-oriented solutions, offering a different risk-reward profile. Against this backdrop, Rigetti’s differentiated hardware roadmap and ecosystem partnerships support a longer-term opportunity, but inconsistent execution and limited revenue scale remain a cause for concern.
RGTI’s Shares Price Performance
Over the past year, Rigetti Computing’s shares have climbed 151.1%, delivering strong gains that place the stock well ahead of the broader software universe and most quantum peers, though still short of the segment’s top performer. QBTS has been the clear standout, surging 395.1% on far stronger investor momentum. IONQ has posted a solid 64.6% advance, while QUBT has lagged with a more modest 17.5% rise. By comparison, the Zacks Internet-Softwarei ndustry has gained just 6.6% over the same period, underscoring that Rigetti’s rally has been substantial, even if it trails the category leader.
RGTI's Price Performance
Image Source: Zacks Investment Research
Why RGTI May Still Be a Hold Heading Into 2026
Government-Backed Demand Provides Revenue Support: Even amid near-term share price volatility, Rigetti continues to secure government and research-driven business that supports its medium-term outlook. The company landed a three-year, $5.8 million contract with the Air Force Research Laboratory to advance superconducting quantum networking, alongside $5.7 million in orders for two upgradable 9-qubit Novera systems. While the deals are unlikely to translate into large-scale recurring revenues in the near future, these reinforce Rigetti’s credibility in foundational quantum development and provide incremental revenue visibility as U.S. federal quantum funding, including the reinstated National Quantum Initiative, gradually stabilizes.
Expanding International and Academic Presence: Rigetti is also broadening its ecosystem through strategic partnerships that extend beyond immediate commercial returns. A new memorandum of understanding with India’s C-DAC aligns the company with a fast-growing, government-supported quantum initiative, potentially opening pathways for hybrid computing projects and co-development efforts. In parallel, Montana State University’s deployment of a 9-qubit Novera system marks Rigetti’s first academic on-premises installation, establishing a foothold for future research collaborations and system upgrades. These efforts, combined with Rigetti’s participation in NVIDIA’s NVQLink platform, strengthen its global footprint and help buffer the business as commercialization timelines stretch.
Roadmap Execution Remains the Core 2026 Catalyst: From a technology standpoint, Rigetti continues to make measurable progress on its chiplet-based architecture, supported by encouraging performance data from its existing 36-qubit system. Management reaffirmed plans to introduce a 100-plus qubit system with 99.5% median two-qubit fidelity and targets a 150-plus qubit system with 99.7% fidelity in 2026, followed by a 1,000-plus qubit platform in 2027, enabled by larger 36-qubit chiplets. Execution against these milestones will likely be central to whether investors remain patient with the stock into 2026.
RGTI’s Sales & EPS Growth
In 2025, Rigetti is expected to experience a 26.9%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
Key Challenge for RGTI
Revenue Volatility and Margin Compression Continue to Weigh: Rigetti’s biggest hurdle remains converting its technical milestones into a more durable and predictable revenue stream, a challenge clearly reflected in its third-quarter performance. Quarterly sales slipped to $1.9 million, marking an 18% year-over-year decline, largely due to the temporary funding gap tied to the National Quantum Initiative and the uneven cadence of government contract awards.
At the same time, profitability metrics deteriorated as gross margin compressed sharply to 21%, caused by a heavier mix of lower-margin contracts. Operating expenses climbed to $21 million, reflecting elevated R&D investment, higher compensation costs and increased stock-based pay. Taken together, the combination of soft revenues, margin pressure and rising expenses underscores that Rigetti’s business remains anchored to government and research programs, with broad-based commercial adoption still slow to materialize.
RGTI’s Shares Look Overvalued
Rigetti stock is not so cheap, as suggested by the Value Score of F.
It is currently trading at a price-to-book (P/B) ratio of 22.38X, which is higher than the industry average of 6.1X.
RGTI's Price-to-Book Ratio
Image Source: Zacks Investment Research
How to Approach RGTI Stock as the 2026-2027 Roadmap Unfolds
Rigetti remains an intriguing yet speculative name in the quantum computing space, supported by tangible progress on its long-term technology roadmap but weighed down by an unsettled financial profile. The company continues to advance toward larger, higher-fidelity systems while strengthening ties with government, academic and ecosystem partners, including efforts around hybrid quantum-AI integration. At the same time, weak third-quarter revenues, margin compression and rising operating expenses underscore the execution risks that continue to shape the near-term narrative.
With a Zacks Rank #3 (Hold), RGTI appears better positioned as a monitoring candidate rather than an aggressive accumulation story. The 2026-2027 period will be critical, as investor confidence will increasingly depend on Rigetti’s ability to translate its hardware milestones into broader enterprise adoption, improved system economics and more consistent revenue generation. For existing shareholders, a patient, measured approach may be suited as the company works to bridge the gap between technological advancement and sustainable commercial growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.