It has been about a month since the last earnings report for D-Wave Quantum Inc. (QBTS Quick QuoteQBTS - Free Report) . Shares have added about 8.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is D-WAVE QUANTUM due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for D-Wave Quantum Inc. before we dive into how investors and analysts have reacted as of late.

D-Wave Q1 Earnings Beat, Revenues Miss

D-Wave 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.

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, D-Wave 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.

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.

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.

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.

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.

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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -11.29% due to these changes.

VGM Scores

Currently, D-WAVE QUANTUM has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. However, the stock was allocated a score of F on the value side, putting it in the lowest quintile for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, D-WAVE QUANTUM has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

D-WAVE QUANTUM is part of the Zacks Internet - Software industry. Over the past month, Broadridge Financial Solutions (BR Quick QuoteBR - Free Report) , a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended March 2026 more than a month ago.

Broadridge Financial reported revenues of $1.95 billion in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $2.72 for the same period compares with $2.44 a year ago.

For the current quarter, Broadridge Financial is expected to post earnings of $3.76 per share, indicating a change of +5.9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Broadridge Financial. Also, the stock has a VGM Score of B.