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Rigetti Q3 Earnings Call Highlights Quantum Roadmap and Funding
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Key Takeaways
RGTI achieved 99.5% median two-qubit gate fidelity on its 108-qubit system, validating its chiplet design.
RGTI targets 300-plus qubits by mid-2028 and 1,000 qubits with 99.9% fidelity within roughly three years.
Rigetti secured up to $100M in government funding while maintaining its $20M revenue outlook for 2026.
Rigetti Computing, Inc. (RGTI - Free Report) emphasized advances in quantum processor performance, government funding and its technology roadmap during its third-quarter 2026 earnings call. Management highlighted improved gate fidelity on its 108-qubit system while outlining milestones toward larger quantum computers.
The company also addressed commercialization timelines, capital spending and revenue expectations, with executives maintaining that technical progress remains the primary priority before broader commercial adoption.
Rigetti Advances 108-Qubit System Fidelity
Chief executive officer Subodh Kulkarni highlighted Cepheus-1-108Q achieving 99.5% median two-qubit gate fidelity, validating the company's chiplet-based architecture. The system comprises 12 interconnected nine-qubit chiplets.
Performance reached 99.6% fidelity across an 80-qubit sublattice and 99.7% across a 50-qubit sublattice. Gate speeds remained approximately 60 nanoseconds.
Responding to Jefferies, Kulkarni explained that higher-performing sublattices allow researchers to run applications without utilizing the entire system. Management continues targeting improvements in coherence, materials and fabrication processes.
RGTI Targets Larger Systems by Mid-2028
Kulkarni outlined plans for a 300-plus-qubit system with approximately 99.7% median two-qubit fidelity and gate speeds below 60 nanoseconds by mid-2028.
The longer-term objective involves approximately 1,000 qubits, 99.9% fidelity and sub-50-nanosecond gate speeds within approximately three years, alongside error correction capabilities.
During discussions with B. Riley Securities, Kulkarni described the 300-qubit target as an intermediate milestone rather than a threshold for quantum advantage. Responding to Rosenblatt Securities, he identified fidelity improvements as the principal challenge, particularly coherence, readout and parallel-gate performance.
Rigetti Details $100 Million Government Agreement
Rigetti signed a definitive agreement with the U.S. Department of Commerce for up to $100 million under the CHIPS research program.
Kulkarni said that the funding supports miniaturized readout electronics, expanded cryogenic capacity and advanced fabrication capabilities. These programs address scaling constraints associated with larger quantum processors.
Chief financial officer Jeffrey Bertelsen clarified during an exchange with Needham that funding will be drawn monthly as eligible costs are incurred. The agreement involved issuing approximately 7.7 million shares to the department. No funding had been drawn through September.
RGTI Maintains Revenue Outlook Despite Quarterly Miss
Rigetti expects approximately $20 million in 2026 revenues, contingent on customer acceptance of its C-DAC system and associated fourth-quarter revenue recognition.
Third-quarter revenues of $1.4 million missed the Zacks Consensus Estimate of $3.3 million. Adjusted loss of 6 cents per share matched the consensus estimate.
Rigetti Computing, Inc. Price, Consensus and EPS Surprise
During questions from StoneX and TD Cowen, Kulkarni emphasized that quantum computing remains research-oriented. He said that meaningful commercial adoption depends on demonstrating advantages over classical computing, which management targets in approximately three years. Growing customer interest has not displaced technical milestones as the company's primary performance measures.
Rigetti Prioritizes Infrastructure Investment
Bertelsen reported $497.1 million in cash, cash equivalents and available-for-sale investments at September-end, with no debt.
Third-quarter operating expenses increased to approximately $34 million from $21 million a year earlier, reflecting higher research spending and personnel-related costs. Operating loss widened to $33.2 million.
Responding to Craig-Hallum Capital, Bertelsen indicated that 2027 capital expenditures should remain relatively consistent with 2026 levels. Investments center on dilution refrigerators, fabrication equipment and infrastructure supporting higher-qubit-count systems.
RGTI Keeps Technical Execution at the Forefront
Management's overall message emphasized scaling processor capabilities while maintaining reliability and spending discipline.
Kulkarni reiterated the importance of increasing fidelity, qubit density and gate speeds alongside real-time error correction development with Riverlane. The company's near-term focus remains delivering measurable technical progress rather than accelerating commercialization prematurely.
What Zacks Rank and Style Scores Indicate for RGTI
Rigetti currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term ranking. Its Value and Growth Scores of F reflect unfavorable characteristics under those investment styles, while its Momentum Score of C indicates a comparatively moderate standing. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of F points to weak combined value, growth and momentum characteristics. These scores do not place RGTI among the higher-ranked stocks with favorable A or B Style Scores emphasized by the Zacks framework. The Zacks Rank remains subject to change as analysts revise earnings estimates following the quarterly results.
View the Zacks #1 Rank List
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Rigetti Q3 Earnings Call Highlights Quantum Roadmap and Funding
Key Takeaways
Rigetti Computing, Inc. (RGTI - Free Report) emphasized advances in quantum processor performance, government funding and its technology roadmap during its third-quarter 2026 earnings call. Management highlighted improved gate fidelity on its 108-qubit system while outlining milestones toward larger quantum computers.
The company also addressed commercialization timelines, capital spending and revenue expectations, with executives maintaining that technical progress remains the primary priority before broader commercial adoption.
Rigetti Advances 108-Qubit System Fidelity
Chief executive officer Subodh Kulkarni highlighted Cepheus-1-108Q achieving 99.5% median two-qubit gate fidelity, validating the company's chiplet-based architecture. The system comprises 12 interconnected nine-qubit chiplets.
Performance reached 99.6% fidelity across an 80-qubit sublattice and 99.7% across a 50-qubit sublattice. Gate speeds remained approximately 60 nanoseconds.
Responding to Jefferies, Kulkarni explained that higher-performing sublattices allow researchers to run applications without utilizing the entire system. Management continues targeting improvements in coherence, materials and fabrication processes.
RGTI Targets Larger Systems by Mid-2028
Kulkarni outlined plans for a 300-plus-qubit system with approximately 99.7% median two-qubit fidelity and gate speeds below 60 nanoseconds by mid-2028.
The longer-term objective involves approximately 1,000 qubits, 99.9% fidelity and sub-50-nanosecond gate speeds within approximately three years, alongside error correction capabilities.
During discussions with B. Riley Securities, Kulkarni described the 300-qubit target as an intermediate milestone rather than a threshold for quantum advantage. Responding to Rosenblatt Securities, he identified fidelity improvements as the principal challenge, particularly coherence, readout and parallel-gate performance.
Rigetti Details $100 Million Government Agreement
Rigetti signed a definitive agreement with the U.S. Department of Commerce for up to $100 million under the CHIPS research program.
Kulkarni said that the funding supports miniaturized readout electronics, expanded cryogenic capacity and advanced fabrication capabilities. These programs address scaling constraints associated with larger quantum processors.
Chief financial officer Jeffrey Bertelsen clarified during an exchange with Needham that funding will be drawn monthly as eligible costs are incurred. The agreement involved issuing approximately 7.7 million shares to the department. No funding had been drawn through September.
RGTI Maintains Revenue Outlook Despite Quarterly Miss
Rigetti expects approximately $20 million in 2026 revenues, contingent on customer acceptance of its C-DAC system and associated fourth-quarter revenue recognition.
Third-quarter revenues of $1.4 million missed the Zacks Consensus Estimate of $3.3 million. Adjusted loss of 6 cents per share matched the consensus estimate.
Rigetti Computing, Inc. Price, Consensus and EPS Surprise
Rigetti Computing, Inc. price-consensus-eps-surprise-chart | Rigetti Computing, Inc. Quote
During questions from StoneX and TD Cowen, Kulkarni emphasized that quantum computing remains research-oriented. He said that meaningful commercial adoption depends on demonstrating advantages over classical computing, which management targets in approximately three years. Growing customer interest has not displaced technical milestones as the company's primary performance measures.
Rigetti Prioritizes Infrastructure Investment
Bertelsen reported $497.1 million in cash, cash equivalents and available-for-sale investments at September-end, with no debt.
Third-quarter operating expenses increased to approximately $34 million from $21 million a year earlier, reflecting higher research spending and personnel-related costs. Operating loss widened to $33.2 million.
Responding to Craig-Hallum Capital, Bertelsen indicated that 2027 capital expenditures should remain relatively consistent with 2026 levels. Investments center on dilution refrigerators, fabrication equipment and infrastructure supporting higher-qubit-count systems.
RGTI Keeps Technical Execution at the Forefront
Management's overall message emphasized scaling processor capabilities while maintaining reliability and spending discipline.
Kulkarni reiterated the importance of increasing fidelity, qubit density and gate speeds alongside real-time error correction development with Riverlane. The company's near-term focus remains delivering measurable technical progress rather than accelerating commercialization prematurely.
What Zacks Rank and Style Scores Indicate for RGTI
Rigetti currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term ranking. Its Value and Growth Scores of F reflect unfavorable characteristics under those investment styles, while its Momentum Score of C indicates a comparatively moderate standing. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock's VGM Score of F points to weak combined value, growth and momentum characteristics. These scores do not place RGTI among the higher-ranked stocks with favorable A or B Style Scores emphasized by the Zacks framework. The Zacks Rank remains subject to change as analysts revise earnings estimates following the quarterly results.