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RGTI vs QUBT: Which Quantum Computing Stock Has More Upside Potential?
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Key Takeaways
QUBT's Q2 revenues surged to $5.6M, driven by government, commercial and educational customers.
QUBT expanded through acquisitions, NeuraWave traction and a contract backlog reaching $42.5 million.
Rigetti's revenues jumped 185% to $5.1M as it advanced Cepheus-1 and its roadmap toward 1,000 qubits.
The quantum computing race is no longer just about who can build the most powerful machine. It is increasingly becoming a contest between companies pursuing different paths to commercial adoption while convincing investors they can turn breakthrough technology into sustainable businesses.
That contrast was on full display during the latest earnings season as Rigetti Computing (RGTI - Free Report) and Quantum Computing Inc. (QUBT - Free Report) outlined sharply different strategies for scaling their businesses. Rigetti doubled down on its superconducting quantum computing roadmap, highlighting progress on its 108-qubit Cepheus-1 system, a modular chiplet architecture aimed at 1,000-qubit systems and growing government-backed initiatives. Meanwhile, QUBT leaned into its room-temperature photonic platform, expanding through acquisitions, semiconductor manufacturing and AI-focused photonics products designed to generate commercial revenue alongside its long-term quantum ambitions.
Both companies reported second-quarter revenues above $5 million, but the drivers behind those results looked very different. Rigetti's 185% revenue jump was fueled by quantum hardware deployments, while QUBT's 9,000% surge reflected contributions from its rapidly expanding photonics and semiconductor businesses. With both stocks competing for investor attention in one of the market's fastest-evolving industries, the bigger question is which execution strategy appears stronger based on their latest updates.
Let's get into more detail.
Image Source: Zacks Investment Research
Rigetti's Growth Catalysts
Rigetti's second-quarter results reinforced an execution-driven investment case as revenues jumped 185% year over year to $5.1 million, fueled by on-premises Novera QPU sales, while gross margin expanded to 43% from 31% a year ago.
Beyond the financials, the company continued advancing its 108-qubit Cepheus-1 platform, reaffirmed its chiplet-based roadmap toward roughly 1,000 qubits over the next three years, strengthened its government ties through a U.S. Department of Commerce letter of intent for up to $100 million in potential CHIPS Act funding and ended the quarter with $541.3 million in cash, cash equivalents and investments and no debt.
What's Holding Rigetti Back
Rigetti's biggest challenge remains converting technical milestones into durable commercial scale. Although revenues grew sharply, quarterly sales remain relatively modest at $5.1 million, while operating expenses climbed to $30.3 million as the company continued investing heavily in R&D, chip design, fabrication and refrigeration infrastructure to support higher-qubit systems.
At the same time, management still needs to deliver meaningful improvements in Cepheus-1's gate fidelity and coherence times before progressing toward its 1,000-qubit ambitions, while the proposed CHIPS Act funding remains contingent on a definitive agreement and customary approvals.
QUBT's Growth Drivers
Quantum Computing’s second quarter highlighted a broader commercialization strategy that extends beyond quantum computing alone. Revenues surged to $5.6 million from just $61,000 a year ago, with contributions from government, commercial and educational customers across its photonics portfolio.
The company accelerated its expansion through the acquisitions of NHanced Semiconductors, Luminar Semiconductor and NuCrypt, strengthening its advanced packaging and semiconductor manufacturing capabilities while launching its Fab 2 initiative.
Commercial traction also improved with the rollout of the NeuraWave photonic AI platform, the installation of a DIRAC-3 optimization system at a global consulting firm, a multi-unit NeuraWave framework agreement with Planck Dynamics and a contract backlog that reached $42.5 million, backed by a cash and investment position of roughly $1.3 billion.
What Could Slow QUBT's Momentum
QUBT's rapid expansion also brings meaningful execution risks as the company integrates multiple acquisitions while scaling manufacturing and commercialization simultaneously. Operating expenses more than doubled to $21.8 million, due to higher R&D spending, personnel costs, sales and marketing investments and acquisition-related expenses.
The company remains heavily dependent on government-funded work, with management indicating that roughly 70%-80% of current business comes from government subcontracting, while contract timing remains lumpy and backlog is expected to be recognized over 12 to 18 months rather than translating into immediate revenue.
In addition, management is evaluating another $50-$100 million of potential investment to enhance NHanced's manufacturing capabilities, adding another layer of capital deployment and integration complexity.
2026 Estimates: RGTI Vs. QUBT
The Zacks Consensus Estimate for RGTI’s 2026 bottom line is pegged at a loss of 19 cents per share, implying a 70.3% improvement over the 2025 reported figure.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for QUBT’s 2026 bottom line is pegged at a loss of 19 cents per share, implying a 72.7% decline over the 2025 reported loss.
Image Source: Zacks Investment Research
Bullish Price Target for QUBT Over RGTI
Based on short-term price targets offered by six analysts, the average price target for QUBT represents an increase of 103.8% from the last closing price of $9.16.
Image Source: Zacks Investment Research
Based on short-term price targets offered by 11 analysts, the average price target for RGTI represents an increase of 79.1% from the last closing price of $16.50.
Image Source: Zacks Investment Research
Final Take: RGTI or QUBT?
The latest earnings season highlighted two very different execution stories. QUBT paired revenue growth with expanding commercial traction through acquisitions, a growing photonics business, a $42.5 million backlog and a sizeable $1.3 billion cash position, while Rigetti's quarter centered on advancing its superconducting roadmap, government partnerships and long-term technology milestones. Analyst sentiment also reflects a wider upside outlook for QUBT, with its average price target implying 103.8% upside from recent levels compared with 79.1% for Rigetti.
The two stocks entered the next phase with different outlooks. QUBT currently carries a Zacks Rank #3 (Hold), reflecting a more balanced near-term earnings outlook, while Rigetti carries a Zacks Rank #5 (Strong Sell), indicating weaker earnings expectations. Although QUBT appears better positioned from a commercialization and analyst-sentiment standpoint, both companies remain high-risk plays in an emerging industry where execution, customer adoption and technology milestones will likely remain the key factors to watch.
View the Zacks #1 Rank List
Image: Bigstock
RGTI vs QUBT: Which Quantum Computing Stock Has More Upside Potential?
Key Takeaways
The quantum computing race is no longer just about who can build the most powerful machine. It is increasingly becoming a contest between companies pursuing different paths to commercial adoption while convincing investors they can turn breakthrough technology into sustainable businesses.
That contrast was on full display during the latest earnings season as Rigetti Computing (RGTI - Free Report) and Quantum Computing Inc. (QUBT - Free Report) outlined sharply different strategies for scaling their businesses. Rigetti doubled down on its superconducting quantum computing roadmap, highlighting progress on its 108-qubit Cepheus-1 system, a modular chiplet architecture aimed at 1,000-qubit systems and growing government-backed initiatives. Meanwhile, QUBT leaned into its room-temperature photonic platform, expanding through acquisitions, semiconductor manufacturing and AI-focused photonics products designed to generate commercial revenue alongside its long-term quantum ambitions.
Both companies reported second-quarter revenues above $5 million, but the drivers behind those results looked very different. Rigetti's 185% revenue jump was fueled by quantum hardware deployments, while QUBT's 9,000% surge reflected contributions from its rapidly expanding photonics and semiconductor businesses. With both stocks competing for investor attention in one of the market's fastest-evolving industries, the bigger question is which execution strategy appears stronger based on their latest updates.
Let's get into more detail.
Image Source: Zacks Investment Research
Rigetti's Growth Catalysts
Rigetti's second-quarter results reinforced an execution-driven investment case as revenues jumped 185% year over year to $5.1 million, fueled by on-premises Novera QPU sales, while gross margin expanded to 43% from 31% a year ago.
Beyond the financials, the company continued advancing its 108-qubit Cepheus-1 platform, reaffirmed its chiplet-based roadmap toward roughly 1,000 qubits over the next three years, strengthened its government ties through a U.S. Department of Commerce letter of intent for up to $100 million in potential CHIPS Act funding and ended the quarter with $541.3 million in cash, cash equivalents and investments and no debt.
What's Holding Rigetti Back
Rigetti's biggest challenge remains converting technical milestones into durable commercial scale. Although revenues grew sharply, quarterly sales remain relatively modest at $5.1 million, while operating expenses climbed to $30.3 million as the company continued investing heavily in R&D, chip design, fabrication and refrigeration infrastructure to support higher-qubit systems.
At the same time, management still needs to deliver meaningful improvements in Cepheus-1's gate fidelity and coherence times before progressing toward its 1,000-qubit ambitions, while the proposed CHIPS Act funding remains contingent on a definitive agreement and customary approvals.
QUBT's Growth Drivers
Quantum Computing’s second quarter highlighted a broader commercialization strategy that extends beyond quantum computing alone. Revenues surged to $5.6 million from just $61,000 a year ago, with contributions from government, commercial and educational customers across its photonics portfolio.
The company accelerated its expansion through the acquisitions of NHanced Semiconductors, Luminar Semiconductor and NuCrypt, strengthening its advanced packaging and semiconductor manufacturing capabilities while launching its Fab 2 initiative.
Commercial traction also improved with the rollout of the NeuraWave photonic AI platform, the installation of a DIRAC-3 optimization system at a global consulting firm, a multi-unit NeuraWave framework agreement with Planck Dynamics and a contract backlog that reached $42.5 million, backed by a cash and investment position of roughly $1.3 billion.
What Could Slow QUBT's Momentum
QUBT's rapid expansion also brings meaningful execution risks as the company integrates multiple acquisitions while scaling manufacturing and commercialization simultaneously. Operating expenses more than doubled to $21.8 million, due to higher R&D spending, personnel costs, sales and marketing investments and acquisition-related expenses.
The company remains heavily dependent on government-funded work, with management indicating that roughly 70%-80% of current business comes from government subcontracting, while contract timing remains lumpy and backlog is expected to be recognized over 12 to 18 months rather than translating into immediate revenue.
In addition, management is evaluating another $50-$100 million of potential investment to enhance NHanced's manufacturing capabilities, adding another layer of capital deployment and integration complexity.
2026 Estimates: RGTI Vs. QUBT
The Zacks Consensus Estimate for RGTI’s 2026 bottom line is pegged at a loss of 19 cents per share, implying a 70.3% improvement over the 2025 reported figure.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for QUBT’s 2026 bottom line is pegged at a loss of 19 cents per share, implying a 72.7% decline over the 2025 reported loss.
Image Source: Zacks Investment Research
Bullish Price Target for QUBT Over RGTI
Based on short-term price targets offered by six analysts, the average price target for QUBT represents an increase of 103.8% from the last closing price of $9.16.
Image Source: Zacks Investment Research
Based on short-term price targets offered by 11 analysts, the average price target for RGTI represents an increase of 79.1% from the last closing price of $16.50.
Image Source: Zacks Investment Research
Final Take: RGTI or QUBT?
The latest earnings season highlighted two very different execution stories. QUBT paired revenue growth with expanding commercial traction through acquisitions, a growing photonics business, a $42.5 million backlog and a sizeable $1.3 billion cash position, while Rigetti's quarter centered on advancing its superconducting roadmap, government partnerships and long-term technology milestones. Analyst sentiment also reflects a wider upside outlook for QUBT, with its average price target implying 103.8% upside from recent levels compared with 79.1% for Rigetti.
The two stocks entered the next phase with different outlooks. QUBT currently carries a Zacks Rank #3 (Hold), reflecting a more balanced near-term earnings outlook, while Rigetti carries a Zacks Rank #5 (Strong Sell), indicating weaker earnings expectations. Although QUBT appears better positioned from a commercialization and analyst-sentiment standpoint, both companies remain high-risk plays in an emerging industry where execution, customer adoption and technology milestones will likely remain the key factors to watch.
You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.