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Quantum Stocks Plunge in October: Can Q3 Earnings Halt the Slide?
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Key Takeaways
IonQ, D-Wave, Rigetti and QCi plunged 21.3%-35.7% in October, underperforming their industry.
Inflation, elevated Treasury yields and AI investment concerns intensified pressure on quantum stocks.
November Q3 earnings will test revenue growth, commercial demand, guidance and profitability.
Quantum computing stocks endured a difficult October, extending their correction amid broader weakness in technology shares and diminishing investor appetite for speculative growth investments. IonQ (IONQ - Free Report) , D-Wave Quantum (QBTS - Free Report) , RigettiComputing (RGTI - Free Report) and Quantum Computing Inc. (QUBT - Free Report) or QCi all significantly underperformed the Computer-Integrated Systems industry, raising concerns about the near-term outlook for the emerging quantum computing sector.
Over the past 30 days, IonQ shares plunged 31.7%, while D-Wave declined 35.7%. Rigetti lost 28% and QUBT fell 21.3%. By comparison, the Computer-Integrated Systems industry has declined 17.2% over the same period.
The underperformance points to the vulnerability of quantum pure plays to deteriorating market sentiment, elevated valuations and concerns about the time required to achieve meaningful commercial adoption. However, the upcoming third-quarter 2026 earnings announcements in the first half of November could provide important catalysts.
The central question is whether third-quarter results can restore investor confidence and arrest the quantum-stock downturn or whether continued financial and commercialization challenges will extend the correction.
30-Day Stock Performances
Image Source: Zacks Investment Research
Macro Uncertainty Adds to Quantum Stocks' October Selloff
October's price-performance comparison shows that selling pressure was particularly severe among quantum computing companies amid persistent inflation, elevated Treasury yields, uncertainty over Federal Reserve policy and growing concerns about AI investment returns. These factors have weakened investor appetite for speculative growth stocks, particularly companies whose valuations depend heavily on future commercialization prospects.
According to the Bureau of Labor Statistics, U.S. CPI inflation accelerated to 3.7% year over year in September from 3.4% in August. The Federal Reserve maintained its benchmark interest rate at 3.75%-4.00% in October, while the 10-year Treasury yield briefly crossed 5%, increasing pressure on long-duration growth stocks.
Meanwhile, concerns about the returns on massive AI infrastructure investments triggered technology-sector volatility. Reuters reported that the Nasdaq-100 declined more than 5.8% in October as investors reassessed AI spending and valuation expectations. Geopolitical tensions involving Iran also pushed Brent crude above $117 per barrel on Oct. 30, raising fresh inflation concerns.
The Nov. 3 U.S. midterm elections add another layer of policy uncertainty. Collectively, these developments have created an unfavorable environment for speculative technology investments. Quantum companies face additional pressure because substantial research and infrastructure spending, limited commercialization and uncertain profitability make their stocks particularly sensitive to higher interest rates and declining risk appetite.
Can Q3 Earnings Reverse the Quantum Stock Selloff?
The upcoming earnings season could be an important turning point for the quantum computing sector.
IonQ: The company is scheduled to report third-quarter 2026 results on Nov. 5. The Zacks Consensus Estimate for IonQ third-quarter 2026 revenues is pegged at $145.3 million, indicating an upside of 264.4% year over year. The consensus estimate for the bottom line is pegged at a loss per share of 30 cents, indicating a 91.6% year-over-year improvement.
It remains to be seen whether SkyWater's contribution supports the company's increased full-year revenue outlook of $450-$460 million. Revenue growth above expectations, reaffirmation of guidance and level of acquisition synergies could improve sentiment toward the stock. However, elevated operating expenses and cash utilization could limit the upside. The stock carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
D-Wave: The company is scheduled to report third-quarter 2026 results on Nov. 10. The Zacks Consensus Estimate for QBTS' third-quarter 2026 top line is $4 million, implying a 5.7% year-over-year increase and for the bottom line is a loss of 9 cents per share, a 78.1% year-over-year improvement.
The third-quarter results might depend on whether strong bookings and growing RPO translate into higher recognized revenues. Updates on system deliveries, enterprise contracts and cash burn will also matter. Improved commercial visibility could revive buying interest. The stock carries a Zacks Rank #3.
Image Source: Zacks Investment Research
Rigetti: The company is scheduled to report third-quarter 2026 results on Nov. 10. The consensus estimate for RGTI’s third-quarter 2026 top line is $3.9 million, suggesting a 99.6% year-over-year increase. The Zacks Consensus Estimate for the bottom line is pegged at a loss per share of 5 cents, implying a 66.7% wider loss year over year.
Superconducting processor development, system deliveries, customer contracts and manufacturing progress are expected to positively contribute to the third-quarter results. Revenue growth accompanied by improved commercial visibility could help restore confidence after October's selloff. The stock carries a Zacks Rank #3.
Image Source: Zacks Investment Research
QCi:The company is scheduled to report third-quarter 2026 results on Nov. 9. The Zacks Consensus Estimate for QUBT’s third-quarter 2026 revenues is $7.7 million, compared with year-ago revenues of $0.4 million. The estimate for the bottom line is pegged at a loss per share of 7 cents, implying a 40% wider loss year over year.
Photonics-related activities, manufacturing investments and commercial contracts are expected to have contributed to third-quarter revenue growth. Backlog conversion, operating expenses and cash utilization will be important. Evidence of stronger commercial demand could support a recovery following QUBT's relatively smaller October decline. The stock carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Quantum Stocks Plunge in October: Can Q3 Earnings Halt the Slide?
Key Takeaways
Quantum computing stocks endured a difficult October, extending their correction amid broader weakness in technology shares and diminishing investor appetite for speculative growth investments. IonQ (IONQ - Free Report) , D-Wave Quantum (QBTS - Free Report) , Rigetti Computing (RGTI - Free Report) and Quantum Computing Inc. (QUBT - Free Report) or QCi all significantly underperformed the Computer-Integrated Systems industry, raising concerns about the near-term outlook for the emerging quantum computing sector.
Over the past 30 days, IonQ shares plunged 31.7%, while D-Wave declined 35.7%. Rigetti lost 28% and QUBT fell 21.3%. By comparison, the Computer-Integrated Systems industry has declined 17.2% over the same period.
The underperformance points to the vulnerability of quantum pure plays to deteriorating market sentiment, elevated valuations and concerns about the time required to achieve meaningful commercial adoption. However, the upcoming third-quarter 2026 earnings announcements in the first half of November could provide important catalysts.
The central question is whether third-quarter results can restore investor confidence and arrest the quantum-stock downturn or whether continued financial and commercialization challenges will extend the correction.
30-Day Stock Performances
Image Source: Zacks Investment Research
Macro Uncertainty Adds to Quantum Stocks' October Selloff
October's price-performance comparison shows that selling pressure was particularly severe among quantum computing companies amid persistent inflation, elevated Treasury yields, uncertainty over Federal Reserve policy and growing concerns about AI investment returns. These factors have weakened investor appetite for speculative growth stocks, particularly companies whose valuations depend heavily on future commercialization prospects.
According to the Bureau of Labor Statistics, U.S. CPI inflation accelerated to 3.7% year over year in September from 3.4% in August. The Federal Reserve maintained its benchmark interest rate at 3.75%-4.00% in October, while the 10-year Treasury yield briefly crossed 5%, increasing pressure on long-duration growth stocks.
Meanwhile, concerns about the returns on massive AI infrastructure investments triggered technology-sector volatility. Reuters reported that the Nasdaq-100 declined more than 5.8% in October as investors reassessed AI spending and valuation expectations. Geopolitical tensions involving Iran also pushed Brent crude above $117 per barrel on Oct. 30, raising fresh inflation concerns.
The Nov. 3 U.S. midterm elections add another layer of policy uncertainty. Collectively, these developments have created an unfavorable environment for speculative technology investments. Quantum companies face additional pressure because substantial research and infrastructure spending, limited commercialization and uncertain profitability make their stocks particularly sensitive to higher interest rates and declining risk appetite.
Can Q3 Earnings Reverse the Quantum Stock Selloff?
The upcoming earnings season could be an important turning point for the quantum computing sector.
IonQ: The company is scheduled to report third-quarter 2026 results on Nov. 5. The Zacks Consensus Estimate for IonQ third-quarter 2026 revenues is pegged at $145.3 million, indicating an upside of 264.4% year over year. The consensus estimate for the bottom line is pegged at a loss per share of 30 cents, indicating a 91.6% year-over-year improvement.
It remains to be seen whether SkyWater's contribution supports the company's increased full-year revenue outlook of $450-$460 million. Revenue growth above expectations, reaffirmation of guidance and level of acquisition synergies could improve sentiment toward the stock. However, elevated operating expenses and cash utilization could limit the upside. The stock carries a Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
D-Wave: The company is scheduled to report third-quarter 2026 results on Nov. 10. The Zacks Consensus Estimate for QBTS' third-quarter 2026 top line is $4 million, implying a 5.7% year-over-year increase and for the bottom line is a loss of 9 cents per share, a 78.1% year-over-year improvement.
The third-quarter results might depend on whether strong bookings and growing RPO translate into higher recognized revenues. Updates on system deliveries, enterprise contracts and cash burn will also matter. Improved commercial visibility could revive buying interest. The stock carries a Zacks Rank #3.
Image Source: Zacks Investment Research
Rigetti: The company is scheduled to report third-quarter 2026 results on Nov. 10. The consensus estimate for RGTI’s third-quarter 2026 top line is $3.9 million, suggesting a 99.6% year-over-year increase. The Zacks Consensus Estimate for the bottom line is pegged at a loss per share of 5 cents, implying a 66.7% wider loss year over year.
Superconducting processor development, system deliveries, customer contracts and manufacturing progress are expected to positively contribute to the third-quarter results. Revenue growth accompanied by improved commercial visibility could help restore confidence after October's selloff. The stock carries a Zacks Rank #3.
Image Source: Zacks Investment Research
QCi:The company is scheduled to report third-quarter 2026 results on Nov. 9. The Zacks Consensus Estimate for QUBT’s third-quarter 2026 revenues is $7.7 million, compared with year-ago revenues of $0.4 million. The estimate for the bottom line is pegged at a loss per share of 7 cents, implying a 40% wider loss year over year.
Photonics-related activities, manufacturing investments and commercial contracts are expected to have contributed to third-quarter revenue growth. Backlog conversion, operating expenses and cash utilization will be important. Evidence of stronger commercial demand could support a recovery following QUBT's relatively smaller October decline. The stock carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research