Rigetti Computing RGTI reported second-quarter 2026 adjusted loss per share of 5 cents, wider than 4 cents in the prior-year quarter. The metric also missed the Zacks Consensus Estimate of earnings by 66.7%.
GAAP loss per share in the reported quarter was 16 cents compared with 13 cents in the prior-year quarter.
The company reported total revenues of $5.1 million, up 185.3% year over year. The top line surpassed the Zacks Consensus Estimate by 4.68%.
Shares of this company lost 3.5% in yesterday’s after-market trading. The company’s shares have plunged 22.6% in the year-to-date period compared with the industry’s decrease of 5.8%. However, the broader S&P 500 Index has increased 12.4% in the same time frame.
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Rigetti’s Q2 Revenue Growth
Rigetti’s second-quarter 2026 revenues benefited from growing demand for its on-premises quantum computing systems, including Novera-based deployments, along with broader engagement across government, academic and commercial customers.
RGTI’s Margin Trend
In the quarter under review, RGTI’s gross profit surged 286.6% year over year to $2.2 million. The gross margin expanded roughly 1,120 basis points to 42.6%.
Selling, general and administrative expenses increased 37.5% year over year to $9.5 million. Research and development expenses rose 53.3% year over year to $20.7 million. Total operating expenses of $30.3 million increased 47.9% year over year.
Operating loss for the quarter under review totaled $28.1 million compared with $19.9 million in the prior-year quarter.
RGTI’s Financial Position
RGTI exited the second quarter of 2026 with cash, cash equivalents and short-term available-for-sale investments of $393.7 million compared with $418.2 million at the end of the first quarter of 2026.
The company ended the quarter with no debts on its balance sheet.
Cumulative net cash provided by operating activities at the second-quarter end was $14.9 million against net cash used in operating activities of $369.7 million a year ago.
Wrapping Up
Rigetti exited second-quarter 2026 with mixed results, wherein revenues surpassed the Zacks Consensus Estimate, but earnings missed the same. Strong year-over-year revenue growth, driven by on-premises Novera QPU and system deliveries, was encouraging.
Customer engagement also broadened across government, academic and commercial markets. Rigetti continued to fulfill on-premises system commitments, including its 108-qubit program for C-DAC in India. The company also expanded its collaboration with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center. A 9-qubit Novera system is set to be deployed at PSC’s TangleLab testbed to support hybrid quantum-classical computing research.
On the technology front, Rigetti continued to advance its Cepheus platform. Cepheus-1-108Q operated at approximately 99.1% median two-qubit gate fidelity, 99.9% median single-qubit gate fidelity and gate speeds of about 60 nanoseconds. The company also demonstrated median two-qubit gate fidelities of 99.8% and 99.6% on its 9-qubit and 36-qubit systems, respectively.
Rigetti remains focused on improving coherence time through chip design, fabrication, materials and process enhancements. Its longer-term roadmap targets roughly 1,000 qubits, 99.9% two-qubit gate fidelity and gate speeds below 50 nanoseconds. The Department of Commerce letter of intent for up to $100 million of potential funding could further support R&D aimed at addressing scaling challenges in superconducting quantum computing.
However, profitability remains a concern. Non-GAAP net loss widened to $16 million from $13.3 million a year ago, while operating loss increased to $28.1 million. Higher research and development and selling, general and administrative expenses continued to weigh on results. Rigetti also faces the technical challenge of improving coherence and fidelity as systems scale to higher qubit counts. The Department of Commerce funding is subject to definitive award documentation and milestone requirements. Nevertheless, the company ended the quarter with $541.3 million in cash, cash equivalents and available-for-sale investments and no debt, providing financial flexibility to support its technology roadmap and system deployments.
Zacks Rank and Stocks to Consider
RGTI carries a Zacks Rank #3 (Hold) at present.
Some better-ranked stocks in the broader medical space are McKesson MCK, Phibro Animal Health PAHC andCardinal Health CAH.
McKesson carries a Zacks Rank #2 (Buy) at present and has an estimated long-term growth rate of 13.7%. MCK’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.09%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
McKessonshares have gained 8.8% against the industry’s 12.7% decline in the year-to-date period.
Phibro Animal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.25%.
Phibro Animal Health stock has climbed 44.2% against the industry’s 17.1% decline in the year-to-date period.
Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%.
Cardinal Health’s shares have lost 2.6% compared with the industry’s 3.1% decline in the year-to-date period.
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Phibro Animal Health Corporation (PAHC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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