We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How IonQ's Expanding Commercial Traction Is Driving Its 2026 Outlook
Read MoreHide Full Article
Key Takeaways
IonQ raised 2026 revenue guidance to $260M-$270M after Q1 revenue jumped 755% year over year.
IONQ's remaining performance obligations rose to $470M, signaling strong future demand.
QBTS and QUBT posted sharp bookings and revenue gains as quantum adoption continued expanding.
In the first quarter, IonQ (IONQ - Free Report) delivered robust revenue growth of 755% year over year, driven by strong demand for its industry-leading quantum computing systems and the growing commercial traction of its broader quantum platform. The company’s performance was supported by increasing global sales of quantum computing systems, rising high-margin cloud utilization and expanding application-layer partnerships with enterprise customers.
Driven by this momentum, IonQ raised its full-year revenue guidance to $260-$270 million, up from its previous forecast of $225–$245 million. For the full year, the company expects organic revenue growth of more than 100% year over year, while remaining performance obligations rise to $470 million, highlighting strong future demand and an expanding customer pipeline.
Despite its rapid growth, IonQ continues to face meaningful risks. The company remains unprofitable as it invests heavily in R&D expansion. In addition, execution challenges persist around scaling fault-tolerant quantum systems and successfully converting its growing backlog into sustainable, recurring revenues.
Peer Update
In the first quarter, D-Wave Quantum (QBTS - Free Report) reported bookings growth of nearly 1,994% year over year, while remaining performance obligations surged 563%. D-Wave Quantum is the only quantum computing company developing both annealing and gate-model systems, positioning it to address the broader quantum computing market. Several Forbes Global 2000 companies rely on its technology to solve complex operational challenges. The company’s dual-rail gate-model technology is a key differentiator, combining superconducting speed, high-performance fidelity and a scalable architecture that could strengthen its long-term competitive position.
Still, risks remain, including revenue volatility tied to large system deals, elevated operating expenses and execution challenges associated with scaling both annealing and gate-model platforms.
In the first quarter of 2026, Quantum Computing or “QCi” (QUBT - Free Report) reported revenues of $3.70 million, up sharply from $39,000 a year earlier, driven mainly by its acquisitions of LSI and NuCrypt. Excluding the LSI and NuCrypt contributions, QCi revenues increased to $204,000 primarily driven by deliveries of foundry orders and work on an R&D subcontract for NASA. The company also made progress in advancing its photonics and quantum technology roadmap, strengthening its position in low-power, room-temperature computing solutions while expanding its commercial momentum and scalable manufacturing capabilities.
Yet, risks persist, as the company remains unprofitable while continuing to invest heavily in R&D expansion.
IONQ’s Price Performance
Over the past year, IONQ’s shares have gained 37.5% compared with the industry’s 250.4% growth. The S&P 500 composite has grown 31.8% in the same period.
Image Source: Zacks Investment Research
Expensive Valuation
IonQ currently trades at a forward 12-month Price-to-Sales (P/S) of 76.51X compared with the industry median of 4.16X.
Image Source: Zacks Investment Research
IONQ Stock Estimate Trend
In the past 30 days, its loss per share estimate for 2026 has moved south to $1.02.
View the Zacks #1 Rank List
Image: Bigstock
Here's How IonQ's Expanding Commercial Traction Is Driving Its 2026 Outlook
Key Takeaways
In the first quarter, IonQ (IONQ - Free Report) delivered robust revenue growth of 755% year over year, driven by strong demand for its industry-leading quantum computing systems and the growing commercial traction of its broader quantum platform. The company’s performance was supported by increasing global sales of quantum computing systems, rising high-margin cloud utilization and expanding application-layer partnerships with enterprise customers.
Driven by this momentum, IonQ raised its full-year revenue guidance to $260-$270 million, up from its previous forecast of $225–$245 million. For the full year, the company expects organic revenue growth of more than 100% year over year, while remaining performance obligations rise to $470 million, highlighting strong future demand and an expanding customer pipeline.
Despite its rapid growth, IonQ continues to face meaningful risks. The company remains unprofitable as it invests heavily in R&D expansion. In addition, execution challenges persist around scaling fault-tolerant quantum systems and successfully converting its growing backlog into sustainable, recurring revenues.
Peer Update
In the first quarter, D-Wave Quantum (QBTS - Free Report) reported bookings growth of nearly 1,994% year over year, while remaining performance obligations surged 563%. D-Wave Quantum is the only quantum computing company developing both annealing and gate-model systems, positioning it to address the broader quantum computing market. Several Forbes Global 2000 companies rely on its technology to solve complex operational challenges. The company’s dual-rail gate-model technology is a key differentiator, combining superconducting speed, high-performance fidelity and a scalable architecture that could strengthen its long-term competitive position.
Still, risks remain, including revenue volatility tied to large system deals, elevated operating expenses and execution challenges associated with scaling both annealing and gate-model platforms.
In the first quarter of 2026, Quantum Computing or “QCi” (QUBT - Free Report) reported revenues of $3.70 million, up sharply from $39,000 a year earlier, driven mainly by its acquisitions of LSI and NuCrypt. Excluding the LSI and NuCrypt contributions, QCi revenues increased to $204,000 primarily driven by deliveries of foundry orders and work on an R&D subcontract for NASA. The company also made progress in advancing its photonics and quantum technology roadmap, strengthening its position in low-power, room-temperature computing solutions while expanding its commercial momentum and scalable manufacturing capabilities.
Yet, risks persist, as the company remains unprofitable while continuing to invest heavily in R&D expansion.
IONQ’s Price Performance
Over the past year, IONQ’s shares have gained 37.5% compared with the industry’s 250.4% growth. The S&P 500 composite has grown 31.8% in the same period.
Image Source: Zacks Investment Research
Expensive Valuation
IonQ currently trades at a forward 12-month Price-to-Sales (P/S) of 76.51X compared with the industry median of 4.16X.
Image Source: Zacks Investment Research
IONQ Stock Estimate Trend
In the past 30 days, its loss per share estimate for 2026 has moved south to $1.02.
Image Source: Zacks Investment Research
IonQ stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.