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3 Quantum Computing Stocks in the Limelight After October Deals
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Key Takeaways
IonQ's $1.3B Elisity acquisition combines Zero Trust cybersecurity with quantum-security capabilities.
Xanadu's GlobalFoundries partnership targets high-volume production of specialized photonic components.
D-Wave launches a gate-model simulator beta and supply-chain initiative with the University of Arkansas.
Quantum computing stocks struggled during the first nine months of 2026 as investors questioned whether the industry could translate technological breakthroughs and government support into sustainable commercial growth in the near term. Although quantum computing promises advances in drug discovery, financial modeling, cybersecurity and complex optimization, widespread adoption remains constrained by hardware scalability, error correction and limited commercially proven applications.
The broader macroeconomic environment added to the pressure. Elevated Treasury yields and concerns about further interest-rate increases reduced investors’ appetite for speculative, long-duration growth stocks. Meanwhile, quantum companies continued to incur substantial research and development expenses, report losses and outline capital-intensive expansion plans. Consequently, promising technological developments and fiscal initiatives failed to consistently translate into positive stock-market sentiment.
However, a series of October transactions and partnerships has renewed attention on the sector, raising questions about whether commercial opportunities are finally becoming more tangible. Here, we discuss three quantum stocks, IonQ (IONQ - Free Report) , Xanadu Quantum Technologies (XNDU - Free Report) and D-Wave Quantum (QBTS - Free Report) , whose October developments offer fresh catalysts that could revive investor sentiment and renew momentum in the quantum-computing sector.
Quantum Computing Outlook
Despite near-term market weakness, the industry's long-term growth outlook remains encouraging. Gartner projected global quantum-computing revenues of $869.9 million in 2026, up 22.9% year over year, before reaching $1.1 billion in 2027. Its longer-term outlook projects the market reaching $2.3 billion by 2030, at a compound annual growth rate of 26.7% for 2025-2030.
Government support also remains an important catalyst. The U.S. government's Quantum Benchmarking Initiative is evaluating different technological approaches to determine whether utility-scale, industrially useful quantum computers can be developed. On Oct. 7, the Defense Advanced Research Projects Agency (DARPA) advanced six companies to Stage 3, including IonQ, alongside IBM, Microsoft, Atom Computing, Diraq and PsiQuantum. This provides a potential validation pathway, although selection does not guarantee commercial success or eliminate technical challenges.
However, the financial picture across the quantum-computing industry remains challenging. Heavy R&D spending, infrastructure investments and cash outflows are weighing on earnings, while revenues remain limited or uneven relative to operating costs for many players. Although rising bookings, new partnerships and growing customer interest signal improving commercial traction, these developments are yet to translate consistently into sustainable revenue growth and positive cash flow. For example, IonQ reported second-quarter 2026 revenues of $80.1 million, up 287% year over year, but an adjusted EBITDA loss of $120.3 million.
3 Stocks in Focus in October
IonQ: It announced on Oct. 12 a definitive agreement to acquire cybersecurity company Elisity in an all-stock transaction valued at up to $1.3 billion, including performance-based earnouts. The deal combines Elisity's Zero Trust security platform and enterprise relationships with IonQ's quantum-security capabilities, potentially broadening its commercial reach. The opportunity is to generate more immediate enterprise demand through cybersecurity while developing longer-term quantum applications.
This Zacks Rank #3 (Hold) stock is projected to report 2026 earnings growth of 40.1% on revenue growth of 249.9%.
Xanadu: This photonic quantum-computing company announced a multiyear manufacturing partnership with GlobalFoundries on Oct. 6. The collaboration targets high-volume production of specialized photonic components, including silicon nitride photonics and single-photon detectors, through GlobalFoundries' 300-mm production line. The agreement addresses a crucial commercialization bottleneck, scaling quantum hardware beyond laboratory production. Industrial manufacturing could improve consistency and support future fault-tolerant systems.
This Zacks Rank #3 stock began trading publicly on March 27, 2026, becoming the first pure-play photonic quantum computing company listed on the Nasdaq and TSX. For 2026, the Zacks Consensus Estimate for the top and bottom line is pegged at $5.60 million and a loss of 54 cents per share, respectively.
Xanadu Quantum Technologies Limited Price and EPS Surprise
D-Wave Quantum: It develops quantum annealing and gate-model systems. D-Wave launched a gate-model quantum simulator beta program on Oct. 1. The program gives selected commercial and research organizations early access to software for experimenting with error-aware programming and developing applications ahead of future gate-model systems. On Oct. 5, the company also announced a supply-chain initiative with the University of Arkansas. These initiatives could broaden D-Wave's technology offering and help customers explore practical optimization applications.
View the Zacks #1 Rank List
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3 Quantum Computing Stocks in the Limelight After October Deals
Key Takeaways
Quantum computing stocks struggled during the first nine months of 2026 as investors questioned whether the industry could translate technological breakthroughs and government support into sustainable commercial growth in the near term. Although quantum computing promises advances in drug discovery, financial modeling, cybersecurity and complex optimization, widespread adoption remains constrained by hardware scalability, error correction and limited commercially proven applications.
The broader macroeconomic environment added to the pressure. Elevated Treasury yields and concerns about further interest-rate increases reduced investors’ appetite for speculative, long-duration growth stocks. Meanwhile, quantum companies continued to incur substantial research and development expenses, report losses and outline capital-intensive expansion plans. Consequently, promising technological developments and fiscal initiatives failed to consistently translate into positive stock-market sentiment.
However, a series of October transactions and partnerships has renewed attention on the sector, raising questions about whether commercial opportunities are finally becoming more tangible. Here, we discuss three quantum stocks, IonQ (IONQ - Free Report) , Xanadu Quantum Technologies (XNDU - Free Report) and D-Wave Quantum (QBTS - Free Report) , whose October developments offer fresh catalysts that could revive investor sentiment and renew momentum in the quantum-computing sector.
Quantum Computing Outlook
Despite near-term market weakness, the industry's long-term growth outlook remains encouraging. Gartner projected global quantum-computing revenues of $869.9 million in 2026, up 22.9% year over year, before reaching $1.1 billion in 2027. Its longer-term outlook projects the market reaching $2.3 billion by 2030, at a compound annual growth rate of 26.7% for 2025-2030.
Government support also remains an important catalyst. The U.S. government's Quantum Benchmarking Initiative is evaluating different technological approaches to determine whether utility-scale, industrially useful quantum computers can be developed. On Oct. 7, the Defense Advanced Research Projects Agency (DARPA) advanced six companies to Stage 3, including IonQ, alongside IBM, Microsoft, Atom Computing, Diraq and PsiQuantum. This provides a potential validation pathway, although selection does not guarantee commercial success or eliminate technical challenges.
However, the financial picture across the quantum-computing industry remains challenging. Heavy R&D spending, infrastructure investments and cash outflows are weighing on earnings, while revenues remain limited or uneven relative to operating costs for many players. Although rising bookings, new partnerships and growing customer interest signal improving commercial traction, these developments are yet to translate consistently into sustainable revenue growth and positive cash flow. For example, IonQ reported second-quarter 2026 revenues of $80.1 million, up 287% year over year, but an adjusted EBITDA loss of $120.3 million.
3 Stocks in Focus in October
IonQ: It announced on Oct. 12 a definitive agreement to acquire cybersecurity company Elisity in an all-stock transaction valued at up to $1.3 billion, including performance-based earnouts. The deal combines Elisity's Zero Trust security platform and enterprise relationships with IonQ's quantum-security capabilities, potentially broadening its commercial reach. The opportunity is to generate more immediate enterprise demand through cybersecurity while developing longer-term quantum applications.
This Zacks Rank #3 (Hold) stock is projected to report 2026 earnings growth of 40.1% on revenue growth of 249.9%.
IonQ, Inc. Price and EPS Surprise
IonQ, Inc. price-eps-surprise | IonQ, Inc. Quote
Xanadu: This photonic quantum-computing company announced a multiyear manufacturing partnership with GlobalFoundries on Oct. 6. The collaboration targets high-volume production of specialized photonic components, including silicon nitride photonics and single-photon detectors, through GlobalFoundries' 300-mm production line. The agreement addresses a crucial commercialization bottleneck, scaling quantum hardware beyond laboratory production. Industrial manufacturing could improve consistency and support future fault-tolerant systems.
This Zacks Rank #3 stock began trading publicly on March 27, 2026, becoming the first pure-play photonic quantum computing company listed on the Nasdaq and TSX. For 2026, the Zacks Consensus Estimate for the top and bottom line is pegged at $5.60 million and a loss of 54 cents per share, respectively.
Xanadu Quantum Technologies Limited Price and EPS Surprise
Xanadu Quantum Technologies Limited price-eps-surprise | Xanadu Quantum Technologies Limited Quote
D-Wave Quantum: It develops quantum annealing and gate-model systems. D-Wave launched a gate-model quantum simulator beta program on Oct. 1. The program gives selected commercial and research organizations early access to software for experimenting with error-aware programming and developing applications ahead of future gate-model systems. On Oct. 5, the company also announced a supply-chain initiative with the University of Arkansas. These initiatives could broaden D-Wave's technology offering and help customers explore practical optimization applications.
This Zacks Rank #3 stock is projected to report 2026 earnings growth of 73.9% on revenue growth of 57.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
D-Wave Quantum Inc. Price and EPS Surprise
D-Wave Quantum Inc. price-eps-surprise | D-Wave Quantum Inc. Quote