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Rigetti Q3 Earnings In Line With Estimates, Revenues Down Y/Y
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Key Takeaways
Rigetti reported an adjusted loss of 6 cents per share, while revenues fell 27.5% to $1.41 million.
RGTI's gross margin expanded to 60.7%, but rising R&D expenses widened operating losses to $33.19 million.
Rigetti targets $20 million in 2026 revenues, with plans for a 300-plus-qubit quantum system by mid-2028.
Rigetti Computing (RGTI - Free Report) reported second-quarter 2026 adjusted loss per share of 6 cents, wider than 3 cents in the prior-year quarter. The metric was in line with the Zacks Consensus Estimate.
GAAP loss per share in the reported quarter was 8 cents compared with 62 cents in the prior-year quarter.
Rigetti’s Q2 Revenue Details
The company reported total revenues of $1.41 million, down 27.5% year over year, primarily due to lower collaborative research and professional services revenues. The top line missed the Zacks Consensus Estimate by 57.6%.
RGTI’s Margin Trend
In the quarter under review, Rigetti's gross profit surged 112.1% year over year to $0.86 million. Gross margin expanded approximately 4,000 basis points to 60.7%, reflecting a favorable contract mix, pricing, system configurations and the timing of hardware revenue recognition.
Selling, general and administrative expenses increased 44.1% year over year to $8.55 million. Research and development expenses surged 69.7% year over year to $25.50 million. Total operating expenses increased 62.5% year over year to $34.04 million.
Operating loss widened to $33.19 million from $20.55 million in the prior-year quarter, reflecting the growing investment burden associated with developing higher-performance quantum computing systems.
RGTI’s Financial Position
RGTI exited the third quarter of 2026 with cash, cash equivalents and short-term available-for-sale investments of $383.3 million compared with $393.7 million at the end of the second quarter of 2026.
The company ended the quarter with no debts on its balance sheet.
Cumulative net cash used in operating activities at the third-quarter end was $49.1 million compared with $43.6 million a year ago.
Rigetti Computing, Inc. Price, Consensus and EPS Surprise
Rigetti expects full-year 2026 revenues of approximately $20 million, contingent on customer acceptance of the C-DAC quantum computing system and associated revenue recognition in the fourth quarter.
On the technology front, the company targets a 300-plus-qubit system with approximately 99.7% median two-qubit gate fidelity and gate speeds below 60 nanoseconds by mid-2028. Planned enhancements include higher qubit density per chiplet, faster readout and expanded cryogenic capacity.
Rigetti's longer-term roadmap targets approximately 1,000 qubits, 99.9% two-qubit gate fidelity and gate speeds below 50 nanoseconds within approximately three years. The company plans to increase qubit density within a single dilution refrigerator rather than connecting multiple refrigerators.
Achieving these milestones will require continued investment in chip architecture, manufacturing processes and cryogenic infrastructure. The timing of customer acceptance, hardware deliveries and research contract execution will remain important factors influencing revenue recognition and operating performance.
Zacks Rank and Stocks to Consider
RGTI carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.
View the Zacks #1 Rank List
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Rigetti Q3 Earnings In Line With Estimates, Revenues Down Y/Y
Key Takeaways
Rigetti Computing (RGTI - Free Report) reported second-quarter 2026 adjusted loss per share of 6 cents, wider than 3 cents in the prior-year quarter. The metric was in line with the Zacks Consensus Estimate.
GAAP loss per share in the reported quarter was 8 cents compared with 62 cents in the prior-year quarter.
Rigetti’s Q2 Revenue Details
The company reported total revenues of $1.41 million, down 27.5% year over year, primarily due to lower collaborative research and professional services revenues. The top line missed the Zacks Consensus Estimate by 57.6%.
RGTI’s Margin Trend
In the quarter under review, Rigetti's gross profit surged 112.1% year over year to $0.86 million. Gross margin expanded approximately 4,000 basis points to 60.7%, reflecting a favorable contract mix, pricing, system configurations and the timing of hardware revenue recognition.
Selling, general and administrative expenses increased 44.1% year over year to $8.55 million. Research and development expenses surged 69.7% year over year to $25.50 million. Total operating expenses increased 62.5% year over year to $34.04 million.
Operating loss widened to $33.19 million from $20.55 million in the prior-year quarter, reflecting the growing investment burden associated with developing higher-performance quantum computing systems.
RGTI’s Financial Position
RGTI exited the third quarter of 2026 with cash, cash equivalents and short-term available-for-sale investments of $383.3 million compared with $393.7 million at the end of the second quarter of 2026.
The company ended the quarter with no debts on its balance sheet.
Cumulative net cash used in operating activities at the third-quarter end was $49.1 million compared with $43.6 million a year ago.
Rigetti Computing, Inc. Price, Consensus and EPS Surprise
Rigetti Computing, Inc. price-consensus-eps-surprise-chart | Rigetti Computing, Inc. Quote
Rigetti's 2026 Outlook and Technology Roadmap
Rigetti expects full-year 2026 revenues of approximately $20 million, contingent on customer acceptance of the C-DAC quantum computing system and associated revenue recognition in the fourth quarter.
On the technology front, the company targets a 300-plus-qubit system with approximately 99.7% median two-qubit gate fidelity and gate speeds below 60 nanoseconds by mid-2028. Planned enhancements include higher qubit density per chiplet, faster readout and expanded cryogenic capacity.
Rigetti's longer-term roadmap targets approximately 1,000 qubits, 99.9% two-qubit gate fidelity and gate speeds below 50 nanoseconds within approximately three years. The company plans to increase qubit density within a single dilution refrigerator rather than connecting multiple refrigerators.
Achieving these milestones will require continued investment in chip architecture, manufacturing processes and cryogenic infrastructure. The timing of customer acceptance, hardware deliveries and research contract execution will remain important factors influencing revenue recognition and operating performance.
Zacks Rank and Stocks to Consider
RGTI carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks from the broader medical space are OPKO Health (OPK - Free Report) , Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) .
OPKO Health, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted loss of 1 cent per share, which surpassed the Zacks Consensus Estimate by 87.5%. Revenues of $163.6 million beat the Zacks Consensus Estimate by 24.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
OPK has an estimated earnings growth rate of 23.3% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 95.1%.
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. Merit Medical Systems’ earnings surpassed estimates in the trailing four quarters, with the average surprise being 14.1%.