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D-Wave Quantum Stock Surges 42.9% in a Year: What's Driving the Rally?
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Key Takeaways
QBTS bookings jumped 1,994% year over year as commercial momentum continued into first-quarter 2026.
QBTS is expanding beyond annealing with a gate-model roadmap after the Quantum Circuits acquisition.
QBTS revenues can fluctuate as larger contracts depend on customer deployment schedules and milestones.
D-Wave Quantum’s (QBTS - Free Report) shares have surged 42.9% over the past year, showing impressive momentum. It has significantly outperformed the industry’s 14.2% decline and the S&P 500 composite’s 23.1% gain.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.
D-Wave Quantum develops and delivers quantum computing systems, software, and services for commercial customers. Core use cases focus on optimization-workforce and production scheduling, vehicle routing and resource allocation, with expanding applications in AI and research. The current sixth-generation annealing system is Advantage2. Revenues come from three primary sources — cloud-based quantum computing as a service (QCaaS), professional services that help customers deploy solutions and on-premises system sales.
Key Catalysts for QBTS’ Growth
D-Wave Quantum’s share price is trending upward, prompted by its commercial momentum carried into the first quarter of 2026. Bookings were up 1,994% from the year-ago period. Over two dozen commercial customers represented over 31% of bookings, while the largest order was the $20 million Florida Atlantic University system sale. Remaining performance obligations were $42.4 million as of March 31, 2026, with about 54% expected to convert to revenues in the next 12 months and 71% in the next two years.
Investors are also focused on the company’s annealing platforms - Advantage2 and the Leap cloud service. The company is extending its product set into gate-model computing following the Quantum Circuits acquisition in January 2026. It highlighted dual-rail qubits with built-in error detection and on-chip cryogenic control as key elements of its gate-model approach. It is targeting roughly 175 physical qubits by the end of 2028 to demonstrate error correction and logical operations, then 10 logical qubits by 2030 and 100 logical qubits by the end of 2032. Alongside this long-dated gate-model roadmap, D-Wave continues to add commercial annealing applications in production and expand research use cases, including work in quantum AI and blockchain benchmarking.
From solvency view point, cash and cash equivalents totaled $338.2 million and marketable investment securities amounted to $250.2 million. Operating cash outflow was $45 million in the first quarter, while investing cash outflow included $250.8 million of cash consideration for the Quantum Circuits acquisition. Even after that step-down, the balance sheet supports continued investment in R&D, sales coverage and system installations. Leap cloud utilization was below 50% entering 2026, which leaves capacity headroom, and additional annealing systems can be installed within months at modest cost.
Factors That May Offset QBTS’ Gains
D-Wave’s revenue mix still depends on the timing of larger contracts and system deliveries. First-quarter 2026 revenues fell to $2.9 million from $15.0 million in the first quarter of 2025 because the prior-year quarter included $12.6 million from the first system sale, with no comparable system revenues recognized in the current period.
Image Source: Zacks Investment Research
While deferred revenues increased to $11.6 million and remaining performance obligations rose to $42.4 million, conversion depends on customer deployment schedules and contract milestones. This setup can drive quarter-to-quarter volatility and delay reported revenues even when bookings are rising.
A Glance at QBTS’ Estimates
In the past 30 days, the Zacks Consensus Estimate for 2026 loss per share EPS has remained unchanged at 25 cents.
Revenues are projected to grow 63.3% to $40.16 million in 2026, while the same for 2027 is expected to reach $91.76 million (up 128.5%).
Atlassian has an earnings yield of 7.1%, well ahead of the industry’s 4.5% yield. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 21.5%. The company’s shares have rallied 43.8% against the industry’s 4.8% decline over the past year.
BILL Holdings, carrying a Zacks Rank #1 at present, has an earnings yield of 8.4% compared to the industry’s negative 4.5% yield. Shares of the company have gained 22.8% compared with the industry’s 4.5% growth. BILL’s earnings topped estimates in each of the trailing four quarters, the average surprise being 21.7%.
Compass, carrying a Zacks Rank #1 at present, has an earnings yield of 0.8% compared with the industry’s 4.5% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. COMP’s earnings beat estimates in two of the trailing four quarters, missed in one and matched in the other, the average surprise being 37.8%.
View the Zacks #1 Rank List
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D-Wave Quantum Stock Surges 42.9% in a Year: What's Driving the Rally?
Key Takeaways
D-Wave Quantum’s (QBTS - Free Report) shares have surged 42.9% over the past year, showing impressive momentum. It has significantly outperformed the industry’s 14.2% decline and the S&P 500 composite’s 23.1% gain.
With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.
D-Wave Quantum develops and delivers quantum computing systems, software, and services for commercial customers. Core use cases focus on optimization-workforce and production scheduling, vehicle routing and resource allocation, with expanding applications in AI and research. The current sixth-generation annealing system is Advantage2. Revenues come from three primary sources — cloud-based quantum computing as a service (QCaaS), professional services that help customers deploy solutions and on-premises system sales.
Key Catalysts for QBTS’ Growth
D-Wave Quantum’s share price is trending upward, prompted by its commercial momentum carried into the first quarter of 2026. Bookings were up 1,994% from the year-ago period. Over two dozen commercial customers represented over 31% of bookings, while the largest order was the $20 million Florida Atlantic University system sale. Remaining performance obligations were $42.4 million as of March 31, 2026, with about 54% expected to convert to revenues in the next 12 months and 71% in the next two years.
Investors are also focused on the company’s annealing platforms - Advantage2 and the Leap cloud service. The company is extending its product set into gate-model computing following the Quantum Circuits acquisition in January 2026. It highlighted dual-rail qubits with built-in error detection and on-chip cryogenic control as key elements of its gate-model approach. It is targeting roughly 175 physical qubits by the end of 2028 to demonstrate error correction and logical operations, then 10 logical qubits by 2030 and 100 logical qubits by the end of 2032. Alongside this long-dated gate-model roadmap, D-Wave continues to add commercial annealing applications in production and expand research use cases, including work in quantum AI and blockchain benchmarking.
From solvency view point, cash and cash equivalents totaled $338.2 million and marketable investment securities amounted to $250.2 million. Operating cash outflow was $45 million in the first quarter, while investing cash outflow included $250.8 million of cash consideration for the Quantum Circuits acquisition. Even after that step-down, the balance sheet supports continued investment in R&D, sales coverage and system installations. Leap cloud utilization was below 50% entering 2026, which leaves capacity headroom, and additional annealing systems can be installed within months at modest cost.
Factors That May Offset QBTS’ Gains
D-Wave’s revenue mix still depends on the timing of larger contracts and system deliveries. First-quarter 2026 revenues fell to $2.9 million from $15.0 million in the first quarter of 2025 because the prior-year quarter included $12.6 million from the first system sale, with no comparable system revenues recognized in the current period.
Image Source: Zacks Investment Research
While deferred revenues increased to $11.6 million and remaining performance obligations rose to $42.4 million, conversion depends on customer deployment schedules and contract milestones. This setup can drive quarter-to-quarter volatility and delay reported revenues even when bookings are rising.
A Glance at QBTS’ Estimates
In the past 30 days, the Zacks Consensus Estimate for 2026 loss per share EPS has remained unchanged at 25 cents.
Revenues are projected to grow 63.3% to $40.16 million in 2026, while the same for 2027 is expected to reach $91.76 million (up 128.5%).
Key Pick
Some better-ranked stocks in the broader internet space are Atlassian (TEAM - Free Report) , BILL Holdings, Inc. (BILL - Free Report) and Compass (COMP - Free Report) .
Atlassian has an earnings yield of 7.1%, well ahead of the industry’s 4.5% yield. Its earnings surpassed estimates in each of the trailing four quarters, the average surprise being 21.5%. The company’s shares have rallied 43.8% against the industry’s 4.8% decline over the past year.
TEAM carries a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BILL Holdings, carrying a Zacks Rank #1 at present, has an earnings yield of 8.4% compared to the industry’s negative 4.5% yield. Shares of the company have gained 22.8% compared with the industry’s 4.5% growth. BILL’s earnings topped estimates in each of the trailing four quarters, the average surprise being 21.7%.
Compass, carrying a Zacks Rank #1 at present, has an earnings yield of 0.8% compared with the industry’s 4.5% yield. Shares of the company have climbed 43.1% against the industry’s 27.9% decline. COMP’s earnings beat estimates in two of the trailing four quarters, missed in one and matched in the other, the average surprise being 37.8%.