Shares of Rigetti Computing (RGTI) fell in after-hours trading after the quantum computing company reported earnings for its second quarter of Fiscal Year 2026. Earnings per share came in at -$0.05, which was in line with analysts’ consensus estimate of -$0.05 per share.
In addition, sales increased by 185.6% year-over-year, with revenue hitting $5.14 million. This beat analysts’ expectations of $5.09 million.
Business Updates
During the second quarter, the company announced a larger collaboration with Hewlett Packard Enterprise (HPE) and the Pittsburgh Supercomputing Center. Rigetti will provide a nine-qubit Novera system for a new research testbed designed to combine traditional supercomputers with quantum technology. At the same time, a possible funding agreement with the U.S. Department of Commerce could provide Rigetti with up to $100 million over three years.
The government funding would support research for solving major problems that make quantum computers difficult to scale. Under the proposed agreement, the Commerce Department would receive an ownership stake in Rigetti based on the amount invested. However, the arrangement is currently only a letter of intent and has not yet become a final award.
Meanwhile, demand for Rigetti’s systems is diversifying from only cloud access. Indeed, the company is delivering machines that customers can operate at their own locations, including a 108-qubit system being developed for India’s C-DAC. Universities and national laboratories are also showing interest because direct access allows researchers to test the hardware more closely.
Is RGTI Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on RGTI stock based on six Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average RGTI price target of $30.71 per share implies 84.5% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report. (See RGTI Stock Forecast).
