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QBTS Q1 Earnings Top Estimates, Revenues Miss, Stock Up
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Key Takeaways
QBTS posted a Q1 loss of 5 cents per share, narrower than estimates, as shares rose pre-market.
D-Wave bookings surged 1,994% year over year, lifted by major enterprise and university deals.
QBTS ended Q1 with $588.4M in cash after advancing its Quantum Circuits acquisition roadmap.
D-Wave Quantum Inc. (QBTS - Free Report) posted a first-quarter 2026 loss of 5 cents per share, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The reported figure widened from a loss of 2 cents in the year-ago quarter.
Revenues came in at $2.86 million, down 80.9% year over year and below the consensus estimate of $5.01 million by 42.9%. Still, contract activity improved, with remaining performance obligations rising to $42.4 million at quarter-end.
Following the announcement, QBTS shares rose 1.96% in the pre-market session today.
QBTS Faces Tough Comparison After Prior-Year System Sale
The quarter’s revenue decline was largely tied to a difficult comparison versus the first quarter of 2025 when the company recognized $12.6 million from its first annealing quantum computing system sale. Without a similar system revenue event, QBTS delivered a smaller top line despite continued commercial engagement.
Management emphasized expanding adoption across both its annealing and gate-model platforms. During the quarter, D-Wave recognized revenues from more than 100 individual customers, with more than half classified as commercial enterprises, underscoring that demand remains broad, even as revenue recognition timing can be lumpy.
D-Wave Scales Commercial Activity With Record Bookings
D-Wave reported first-quarter 2026 bookings of $33.4 million, up 1,994% year over year and 149% higher than the prior quarter. The total included a $20 million system purchase agreement with Florida Atlantic University and a $10 million, two-year enterprise quantum computing as a service deal with a Fortune 100 customer.
D-Wave Quantum Inc. Price, Consensus and EPS Surprise
Remaining performance obligations totaled $42.4 million as of March 31, 2026, with about 54% expected to be recognized as revenues over the next 12 months and 71% over the next two years, leaving a longer-duration tail beyond that.
QBTS Expands Platform Breadth With Quantum Circuits Deal
In January 2026, D-Wave acquired Quantum Circuits, a developer of error-corrected superconducting gate-model systems. The company also laid out targeted roadmap milestones, including a dual-rail system with roughly 175 physical qubits by the end of 2028 and a 1,000 physical-qubit dual-rail system with 10 logical qubits by the end of 2030. D-Wave plans to provide additional details on its Investor Day at the New York Stock Exchange on June 1, 2026.
D-Wave’s Profitability Metrics Show Margin Compression
On a non-GAAP basis, gross profit was $2.0 million, down 86% from the prior-year quarter. The corresponding non-GAAP gross margin was 70.6%, down 2300 basis points (bps) year over year, reflecting a different revenue mix versus the year-ago period that benefited from a system sale.
Operating discipline also remained in focus as investments ramped up. Non-GAAP adjusted operating expenses were $34.8 million, up 73% year over year, while adjusted EBITDA loss widened to $32.8 million. Management attributed higher spending to initiatives supporting accelerated product development and go-to-market execution, along with costs incurred following the Quantum Circuits acquisition.
QBTS’ Liquidity Remains Strong After Large Investing Outflow
QBTS ended the quarter with $588.4 million in cash and marketable investment securities, up 93% year over year. The balance sheet strength provides flexibility as the company funds product development, go-to-market initiatives and integration work following the Quantum Circuits acquisition.
Cash flow reflected that investment posture. Net cash used in operating activities was $45.0 million, while net cash used in investing activities totaled $252.1 million, driven primarily by acquisition-related cash outflows. Despite the heavier spend, management framed liquidity as a key support for executing its dual-platform strategy in a rapidly evolving quantum computing market.
Our Take on QBTS
D-Wave Quantum exited the first quarter of 2026 with a narrower-than-expected loss, while revenues fell short of the estimates. Performance highlights the company’s strong execution, expanding commercial adoption, and technology leadership across both annealing and gate model quantum computing. D-Wave’s acquisition of Quantum Circuits is expected to meaningfully accelerate the delivery of a scalable, error-corrected gate model system.
Some of the major highlights in the quarter include the introduction of new hybrid solver software that supports integrated machine learning models and the completion of the second phase of an ongoing Quantum AI project with Shionogi, a major Japanese pharmaceutical company.
Meanwhile, the top line was down on a year-over-year basis. The contraction of non-GAAP gross margin in the quarter is also discouraging.
QBTS' Zacks Rank & Key Picks
Currently, D-Wave carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Computer and Technology sector are Docebo Inc. (DCBO - Free Report) , Cloudflare, Inc. (NET - Free Report) and Microchip Technology (MCHP - Free Report) .
Docebo, sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 EPS of 34 cents, which beat the Zacks Consensus Estimate by 2.01%. Revenues of $65.6 million surpassed the Zacks Consensus Estimate by 0.19%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DCBO has an earnings yield of 7.9% compared with the industry’s 4.5% yield. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 21.86%.
Cloudflare, carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of 25 cents, exceeding the Zacks Consensus Estimate by 7.53%. Revenues of $639.8 billion beat the Zacks Consensus Estimate by 2.87%.
NET has an estimated long-term earnings growth rate of 26.8% compared with the industry’s 21.8% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 11.62%.
Microchip Technology, currently carrying a Zacks Rank #2, reported fourth-quarter fiscal 2026 earnings of 57 cents per share, which topped the Zacks Consensus Estimate by 13.14%. Revenues of $1.31 billion surpassed the consensus mark by 3.26%.
MCHP has an estimated long-term earnings growth rate of 36.8% compared with the industry’s 29.4% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 8.72%.
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QBTS Q1 Earnings Top Estimates, Revenues Miss, Stock Up
Key Takeaways
D-Wave Quantum Inc. (QBTS - Free Report) posted a first-quarter 2026 loss of 5 cents per share, narrower than the Zacks Consensus Estimate of a loss of 8 cents. The reported figure widened from a loss of 2 cents in the year-ago quarter.
Revenues came in at $2.86 million, down 80.9% year over year and below the consensus estimate of $5.01 million by 42.9%. Still, contract activity improved, with remaining performance obligations rising to $42.4 million at quarter-end.
Following the announcement, QBTS shares rose 1.96% in the pre-market session today.
QBTS Faces Tough Comparison After Prior-Year System Sale
The quarter’s revenue decline was largely tied to a difficult comparison versus the first quarter of 2025 when the company recognized $12.6 million from its first annealing quantum computing system sale. Without a similar system revenue event, QBTS delivered a smaller top line despite continued commercial engagement.
Management emphasized expanding adoption across both its annealing and gate-model platforms. During the quarter, D-Wave recognized revenues from more than 100 individual customers, with more than half classified as commercial enterprises, underscoring that demand remains broad, even as revenue recognition timing can be lumpy.
D-Wave Scales Commercial Activity With Record Bookings
D-Wave reported first-quarter 2026 bookings of $33.4 million, up 1,994% year over year and 149% higher than the prior quarter. The total included a $20 million system purchase agreement with Florida Atlantic University and a $10 million, two-year enterprise quantum computing as a service deal with a Fortune 100 customer.
D-Wave Quantum Inc. Price, Consensus and EPS Surprise
D-Wave Quantum Inc. price-consensus-eps-surprise-chart | D-Wave Quantum Inc. Quote
Remaining performance obligations totaled $42.4 million as of March 31, 2026, with about 54% expected to be recognized as revenues over the next 12 months and 71% over the next two years, leaving a longer-duration tail beyond that.
QBTS Expands Platform Breadth With Quantum Circuits Deal
In January 2026, D-Wave acquired Quantum Circuits, a developer of error-corrected superconducting gate-model systems. The company also laid out targeted roadmap milestones, including a dual-rail system with roughly 175 physical qubits by the end of 2028 and a 1,000 physical-qubit dual-rail system with 10 logical qubits by the end of 2030. D-Wave plans to provide additional details on its Investor Day at the New York Stock Exchange on June 1, 2026.
D-Wave’s Profitability Metrics Show Margin Compression
On a non-GAAP basis, gross profit was $2.0 million, down 86% from the prior-year quarter. The corresponding non-GAAP gross margin was 70.6%, down 2300 basis points (bps) year over year, reflecting a different revenue mix versus the year-ago period that benefited from a system sale.
Operating discipline also remained in focus as investments ramped up. Non-GAAP adjusted operating expenses were $34.8 million, up 73% year over year, while adjusted EBITDA loss widened to $32.8 million. Management attributed higher spending to initiatives supporting accelerated product development and go-to-market execution, along with costs incurred following the Quantum Circuits acquisition.
QBTS’ Liquidity Remains Strong After Large Investing Outflow
QBTS ended the quarter with $588.4 million in cash and marketable investment securities, up 93% year over year. The balance sheet strength provides flexibility as the company funds product development, go-to-market initiatives and integration work following the Quantum Circuits acquisition.
Cash flow reflected that investment posture. Net cash used in operating activities was $45.0 million, while net cash used in investing activities totaled $252.1 million, driven primarily by acquisition-related cash outflows. Despite the heavier spend, management framed liquidity as a key support for executing its dual-platform strategy in a rapidly evolving quantum computing market.
Our Take on QBTS
D-Wave Quantum exited the first quarter of 2026 with a narrower-than-expected loss, while revenues fell short of the estimates. Performance highlights the company’s strong execution, expanding commercial adoption, and technology leadership across both annealing and gate model quantum computing. D-Wave’s acquisition of Quantum Circuits is expected to meaningfully accelerate the delivery of a scalable, error-corrected gate model system.
Some of the major highlights in the quarter include the introduction of new hybrid solver software that supports integrated machine learning models and the completion of the second phase of an ongoing Quantum AI project with Shionogi, a major Japanese pharmaceutical company.
Meanwhile, the top line was down on a year-over-year basis. The contraction of non-GAAP gross margin in the quarter is also discouraging.
QBTS' Zacks Rank & Key Picks
Currently, D-Wave carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader Computer and Technology sector are Docebo Inc. (DCBO - Free Report) , Cloudflare, Inc. (NET - Free Report) and Microchip Technology (MCHP - Free Report) .
Docebo, sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 EPS of 34 cents, which beat the Zacks Consensus Estimate by 2.01%. Revenues of $65.6 million surpassed the Zacks Consensus Estimate by 0.19%. You can see the complete list of today’s Zacks #1 Rank stocks here.
DCBO has an earnings yield of 7.9% compared with the industry’s 4.5% yield. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 21.86%.
Cloudflare, carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of 25 cents, exceeding the Zacks Consensus Estimate by 7.53%. Revenues of $639.8 billion beat the Zacks Consensus Estimate by 2.87%.
NET has an estimated long-term earnings growth rate of 26.8% compared with the industry’s 21.8% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 11.62%.
Microchip Technology, currently carrying a Zacks Rank #2, reported fourth-quarter fiscal 2026 earnings of 57 cents per share, which topped the Zacks Consensus Estimate by 13.14%. Revenues of $1.31 billion surpassed the consensus mark by 3.26%.
MCHP has an estimated long-term earnings growth rate of 36.8% compared with the industry’s 29.4% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 8.72%.