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QUBT Q3 Earnings Preview: Buy, Hold or Sell Amid AI & Tech Selloffs?
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Key Takeaways
QUBT expects Q3 revenues of $7.72 million, up from $0.38 million in the year-ago quarter.
A $42.5 million backlog, acquisitions & photonics demand could support revenue growth & commercialization.
Rising expenses, uneven backlog conversion and a 25X forward P/S ratio pose risks ahead of results.
Quantum Computing Inc. (QUBT - Free Report) or QCi is scheduled to release its third-quarter 2026 results on Nov. 9, after market close, amid heightened volatility in technology stocks following the Nov. 4 U.S. midterm election results. With investor sentiment toward speculative technology stocks remaining fragile, let’s see how things are shaping up prior to the announcement.
QUBT shares declined 10.4% during July-September 2026, underperforming the S&P 500 index, which gained 1.7%. However, the stock outperformed IonQ (IONQ - Free Report) and Quantinuum (QNT - Free Report) , which declined 14.6% and 38.7%, respectively, during this period.
July-September Stock Comparison
Image Source: Zacks Investment Research
What to Expect From QUBT's Q3 Results
The Zacks Consensus Estimate for QUBT's third-quarter 2026 revenues is $7.72 million, implying substantial year-over-year growth from $0.38 million. The consensus loss estimate is 7 cents per share, which indicates a 40% wider loss from a loss of 5 cents in the year-ago quarter.
The projected revenue growth partly reflects the acquisitions of Luminar Semiconductor, NuCrypt and NHanced Semiconductors.
Image Source: Zacks Investment Research
Key Factors to Watch in QUBT's Q3 Earnings
Revenue Growth and Acquisition Contributions: QCi reported second-quarter revenues of $5.6 million, compared with $61,000 in the prior-year quarter. Revenues came primarily from photonics products sold to government, educational, aerospace and commercial customers. In the third quarter, NHanced and other acquired businesses, along with demand for photonics products, may have contributed positively to the business.
Backlog Conversion and Commercial Traction: QCi's contract backlog reached approximately $42.5 million as of June 30, 2026, compared with $16 million at the end of the first quarter. During the second-quarter earnings announcement, QCi explained that contracts have varying fulfillment schedules, making quarterly revenue recognition uneven. Management also indicated that approximately 70% of business came from government subcontracting. Progress in commercial customer acquisition and backlog conversion is expected to impact the third-quarter results.
Technology and Product Developments: QCi is advancing its NeuraWave photonic reservoir computing platform and Dirac-3 quantum optimization system. During the second quarter, it reported commercial deployments and a framework agreement with Planck Dynamics covering an initial purchase order for five NeuraWave systems. Updates on customer deployments, orders and commercialization will be important.
Operating Expenses and Cash Position: Operating expenses increased 114% year over year in the second quarter, partly reflecting higher personnel, R&D, sales and marketing expenses and acquisition-related costs. QCi reported a net loss of $11.8 million. However, cash, cash equivalents and investments totaled approximately $1.3 billion, providing financial flexibility.
How QUBT's Quantum Computing Peers Performed in Q3?
IonQ: Its third-quarter results this week demonstrated strong commercial momentum, with revenues increasing 336% year over year. IonQ raised its 2026 revenue guidance to $505-$515 million, while its adjusted EBITDA loss widened to $133.6 million. Strong revenue growth and expanding commercial opportunities are encouraging, although substantial losses remain a concern.
Quantinuum: Its latest third-quarter results showed revenues increasing 233% year over year. The company raised its 2026 revenue outlook to $31-$34 million. However, its adjusted EBITDA loss widened to $80.5 million, reflecting continuing profitability challenges.
What the Zacks Model Unveils for QUBT Stock
Our proven model does not conclusively predict an earnings beat for QUBT this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Earnings ESP: QUBT has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 4 (Sell).
The stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 25X, which is significantly higher than the sector average of 3.84. This forward P/S ratio raises the risk of a sharp pullback if third-quarter results or the guidance for the rest of 2026 disappoint.
Image Source: Zacks Investment Research
Should Investors Buy, Hold or Sell QUBT Stock Ahead of Q3 Earnings?
QCi's expanding photonics portfolio, $42.5 million backlog, strategic acquisitions and substantial cash position provide encouraging long-term growth opportunities. Its NeuraWave and Dirac-3 platforms also strengthen its commercial prospects. However, rising operating expenses, acquisition integration challenges, uneven revenue recognition and continuing losses remain concerns. Investors need evidence of stronger backlog conversion, sustainable commercial demand and improved cost discipline. Existing investors may consider holding QUBT shares, while prospective investors should wait for the third-quarter results before initiating fresh positions.
View the Zacks #1 Rank List
Image: Bigstock
QUBT Q3 Earnings Preview: Buy, Hold or Sell Amid AI & Tech Selloffs?
Key Takeaways
Quantum Computing Inc. (QUBT - Free Report) or QCi is scheduled to release its third-quarter 2026 results on Nov. 9, after market close, amid heightened volatility in technology stocks following the Nov. 4 U.S. midterm election results. With investor sentiment toward speculative technology stocks remaining fragile, let’s see how things are shaping up prior to the announcement.
QUBT shares declined 10.4% during July-September 2026, underperforming the S&P 500 index, which gained 1.7%. However, the stock outperformed IonQ (IONQ - Free Report) and Quantinuum (QNT - Free Report) , which declined 14.6% and 38.7%, respectively, during this period.
July-September Stock Comparison
Image Source: Zacks Investment Research
What to Expect From QUBT's Q3 Results
The Zacks Consensus Estimate for QUBT's third-quarter 2026 revenues is $7.72 million, implying substantial year-over-year growth from $0.38 million. The consensus loss estimate is 7 cents per share, which indicates a 40% wider loss from a loss of 5 cents in the year-ago quarter.
The projected revenue growth partly reflects the acquisitions of Luminar Semiconductor, NuCrypt and NHanced Semiconductors.
Image Source: Zacks Investment Research
Key Factors to Watch in QUBT's Q3 Earnings
Revenue Growth and Acquisition Contributions: QCi reported second-quarter revenues of $5.6 million, compared with $61,000 in the prior-year quarter. Revenues came primarily from photonics products sold to government, educational, aerospace and commercial customers. In the third quarter, NHanced and other acquired businesses, along with demand for photonics products, may have contributed positively to the business.
Backlog Conversion and Commercial Traction: QCi's contract backlog reached approximately $42.5 million as of June 30, 2026, compared with $16 million at the end of the first quarter. During the second-quarter earnings announcement, QCi explained that contracts have varying fulfillment schedules, making quarterly revenue recognition uneven. Management also indicated that approximately 70% of business came from government subcontracting. Progress in commercial customer acquisition and backlog conversion is expected to impact the third-quarter results.
Technology and Product Developments: QCi is advancing its NeuraWave photonic reservoir computing platform and Dirac-3 quantum optimization system. During the second quarter, it reported commercial deployments and a framework agreement with Planck Dynamics covering an initial purchase order for five NeuraWave systems. Updates on customer deployments, orders and commercialization will be important.
Operating Expenses and Cash Position: Operating expenses increased 114% year over year in the second quarter, partly reflecting higher personnel, R&D, sales and marketing expenses and acquisition-related costs. QCi reported a net loss of $11.8 million. However, cash, cash equivalents and investments totaled approximately $1.3 billion, providing financial flexibility.
How QUBT's Quantum Computing Peers Performed in Q3?
IonQ: Its third-quarter results this week demonstrated strong commercial momentum, with revenues increasing 336% year over year. IonQ raised its 2026 revenue guidance to $505-$515 million, while its adjusted EBITDA loss widened to $133.6 million. Strong revenue growth and expanding commercial opportunities are encouraging, although substantial losses remain a concern.
Quantinuum: Its latest third-quarter results showed revenues increasing 233% year over year. The company raised its 2026 revenue outlook to $31-$34 million. However, its adjusted EBITDA loss widened to $80.5 million, reflecting continuing profitability challenges.
What the Zacks Model Unveils for QUBT Stock
Our proven model does not conclusively predict an earnings beat for QUBT this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Earnings ESP: QUBT has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank of 4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
QUBT's Valuation
The stock is currently trading at a forward 12-month price-to-sales (P/S) ratio of 25X, which is significantly higher than the sector average of 3.84. This forward P/S ratio raises the risk of a sharp pullback if third-quarter results or the guidance for the rest of 2026 disappoint.
Image Source: Zacks Investment Research
Should Investors Buy, Hold or Sell QUBT Stock Ahead of Q3 Earnings?
QCi's expanding photonics portfolio, $42.5 million backlog, strategic acquisitions and substantial cash position provide encouraging long-term growth opportunities. Its NeuraWave and Dirac-3 platforms also strengthen its commercial prospects. However, rising operating expenses, acquisition integration challenges, uneven revenue recognition and continuing losses remain concerns. Investors need evidence of stronger backlog conversion, sustainable commercial demand and improved cost discipline. Existing investors may consider holding QUBT shares, while prospective investors should wait for the third-quarter results before initiating fresh positions.