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How Is QBTS Placed in the Error-Corrected Gate-Model Race in 2026?
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Key Takeaways
D-Wave acquired Quantum Circuits to accelerate error-corrected gate-model quantum computing.
Dual-rail qubits give QBTS speed and fidelity advantages over other gate-model vendors.
QBTS plans 17-qubit systems in 2026, with QCaaS revenues starting this year.
D-Wave Quantum (QBTS - Free Report) 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 - Free Report) 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 - Free Report) 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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
Here is how QBTS’s earnings estimates are trending right now.
Image Source: Zacks Investment Research
D-Wave currently carries a Zacks Rank #5 (Strong Sell).
View the Zacks #1 Rank List
Image: Bigstock
How Is QBTS Placed in the Error-Corrected Gate-Model Race in 2026?
Key Takeaways
D-Wave Quantum (QBTS - Free Report) 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 - Free Report) 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 - Free Report) 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.
Image Source: Zacks Investment Research
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.
Image Source: Zacks Investment Research
Here is how QBTS’s earnings estimates are trending right now.
Image Source: Zacks Investment Research
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.