QUBT vs. QBTS: Which Quantum Stock Should You Buy or Sell Now?

Following their early-August second-quarter 2026 earnings releases, Quantum Computing Inc. QUBT or QCi and D-Wave Quantum QBTS have both materially underperformed the broader market. Since Aug.6, QUBT stock has lost 7.1% and QBTS has declined 12.4% versus a 0.1% dip in the S&P 500.

QUBT reported second-quarter revenues of $5.6 million, up sharply from $61,000 a year earlier, alongside $1.3 billion in cash, cash equivalents and investments, while operating expenses rose 114% to $21.8 million. QBTS recorded $3.1 million of second-quarter revenues but mentioned about $35.5 million in first-half bookings, up more than 1,120% year over year. Meanwhile, AI/technology momentum remains strong, but higher Treasury yields and renewed rate-hike concerns are pressuring high-beta growth stocks.

Image Source: Zacks Investment Research

This is a time for investors to thoroughly analyze how QUBT and QBTS are trending and what lies ahead for both companies through the rest of 2026 before making any financial decision.

QUBT Investment Case

QUBT’s second-quarter 2026 revenues climbed to $5.6 million from $61,000 a year earlier and $3.7 million in the first quarter, with all business units contributing. QCi also sold, delivered and installed its DIRAC-3 quantum optimization system at a global consulting firm, while its NeuraWave platform reached deployment readiness and a framework agreement with Planck Dynamics, which provides for potential deployment of multiple dozens of systems as customer milestones are achieved. QCi ended the April-June quarter with $42.5 million of contract backlog and $1.3 billion in cash, cash equivalents and investments. The NHanced acquisition also expanded its advanced-packaging and manufacturing capabilities through the launch of Fab 2.

The key risk is that the sharp increase in revenues has not yet translated into positive gross or operating profitability. Second-quarter gross loss was $1.2 million, while operating expenses surged 114% year over year to $21.8 million. QCi attributed the gross loss primarily to under-absorption of fixed costs resulting from lower production volumes, although it expects gross margins to improve if production volumes recover. The company also spent approximately $180 million, including transaction expenses, on its three acquisitions during the first half.

QCi has not identified a specific reason for the post-earnings share-price decline, so it would be inappropriate to attribute the drop to one factor. Nevertheless, the stock's weakness places greater emphasis on whether QCi can integrate its acquisitions, increase production volumes and convert its growing commercial pipeline into sustained, scalable revenues during the remainder of 2026.

QBTS Investment Case

Although D-Wave’s second-quarter revenues were essentially flat at $3.1 million, first-half bookings surged 1,120%, including a $20 million system sale. Remaining performance obligations were up 668%, with about 57% expected to be recognized within 12 months.

Commercial customers represented 62.4% of second-quarter revenues versus 45.1% a year earlier. Production applications accounted for 37.3% of first-half QCaaS revenues versus 9.8% in the prior-year period. Management also expects to deliver a 17-qubit dual-rail gate-model system by year-end and outlined longer-term milestones toward fault-tolerant computing. These indicators give QBTS a potentially stronger bridge from quantum research toward commercial applications.

The immediate concern, however, is that bookings have not yet translated into reported revenues at the same pace. Second-quarter revenues missed the Zacks Consensus Estimate. The adjusted EBITDA loss widened to $37.1 million. GAAP operating expenses rose 93% year over year. D-Wave ended June with $546.2 million in cash and marketable securities, down 33% year over year, largely reflecting the Quantum Circuits acquisition. Going forward, the key question is whether the large booking and RPO pipeline converts into revenues as expected while commercial production usage expands and the company executes its annealing and gate-model roadmaps.

Valuation: QUBT vs. QBTS

Quantum Computing currently trades at a forward one-year price-to-sales (P/S) of 36.16X, much lower than its median. D-Wave’s 93.84X P/S also sits below its median.

Image Source: Zacks Investment Research

Our Take

Against this backdrop, QUBT appears better positioned than QBTS, backed by stronger revenue growth, substantial liquidity, expanding commercial opportunities and a relatively lower valuation. However, its Zacks Rank #3 (Hold) suggests investors should wait for clearer evidence of improving margins and scalable growth before buying or booking profits. In contrast, QBTS’ Zacks Rank #4 (Sell), higher valuation, weak revenue growth and widening losses make us recommend selling or booking profits now.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research