IONQ

Interested in D-Wave Quantum Inc.? Here are five stocks we like better. D-Wave Quantum missed Q2 2026 earnings and revenue expectations, yet its stock has risen roughly 20% over the past month. Bookings surged 1,120% to $35.5 million in the first half of 2026, and backlog rose 668% to $40.7 million, signaling potential future revenue. Despite disappointing headline results, growing commercial customer counts and rising production-application usage suggest deeper quantum computing adoption is underway. The tail end of the summer may be giving investors in quantum computing a bit of whiplash. On the one hand, D-Wave Quantum Inc. (NASDAQ: QBTS) delivered one of the more underwhelming Q2 2026 earnings reports, missing on both earnings and revenue, with sales growth seemingly grinding to a halt while competitors saw healthy acceleration. On the other hand, shares of QBTS are up about 20% in the last month, perhaps the first sign of a recovery after a multi-month decline that has been ongoing since May. Short interest in the stock is up, but only to about 1.3% of the float over the past month. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects Despite missing expectations and appearing to fall behind the pack in its last earnings, there is nonetheless a compelling bull case for D-Wave going forward—based on the company's strong potential to convert contracted projects into realized revenue, its capacity to build bookings, its rising backlog, and more. All of these factors could combine to justify Wall Street's continued enthusiasm and the impressive 90% predicted upside for QBTS stock. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? D-Wave's Q2 sales slump is, on the surface, discouraging—particularly given that rivals like IonQ Inc. (NYSE: IONQ) posted strong growth in this area in their recent reports. However, there are signs beyond revenue that D-Wave's commercial adoption may be poised to take off. Commercial revenues represented some 62% of revenue for the quarter, an increase of 45% compared to the prior-year quarter. The company is also generating its revenue from more customers—over 100 in the first half of the year—which is an important development for a firm and industry that has traditionally relied heavily on a small number of lucrative contracts to fuel bottom lines. → Walmart and Home Depot Earnings Show the K (Shaped Economy) Is Here to Stay Crucially, customers are moving beyond experimentation with quantum tech. Production applications accounted for more than 37% of D-Wave's quantum computing as a service (QCaaS) revenue in the first half of 2026, nearly quadruple their share of those sales in the first half of 2025. This could be an indication that clients are more thoroughly integrating quantum computing into their day-to-day operations. Perhaps the strongest argument that investors should not write D-Wave off just yet is the company's strong customer demand, as evidenced by its bookings. While much of this demand has not yet translated to realized revenue, the firm noted 59% year over year (YOY) improvement in its quarterly bookings. Looking at the entire first half of the year, bookings were up a stratospheric 1,120% to $35.5 million. Yes, more than half of that latter figure is due to a single annealing system sale to Florida Atlantic University—though a good portion of that contract has not yet been recognized as revenue in a quarterly earnings report owing to the lengthy delivery, installation, and testing process. This, however, gives investors a glimpse of future earnings, with the anticipation that the majority of that contract—and others—will show up in future revenue figures. Looking at D-Wave's backlog also gives the impression that momentum is building in key areas. The firm's remaining performance obligations (RPO) suggest that future revenue could be much higher than recent results would indicate. As of the end of June 2026, D-Wave's RPO stood at $40.7 million, a massive 668% up from the same figure one year earlier. If the expected 57% of that backlog converts to revenue in the coming year, investors may look ahead to a major sales boost. The quantum race is continuing at breakneck speed, and despite the potential suggested by some details in D-Wave's recent earnings report, investors should keep in mind the risks. The industry may be stratifying into top performers, middling firms, and up-and-coming stars, and there is always the threat posed by major legacy tech companies as well. D-Wave's earnings were a disappointment, with revenue coming in below expectations, losses appearing wider than analysts had predicted, and investors reminded that quarterly results are lumpy and unpredictable. Beyond that, quantum as an industry remains speculative, as none of the firms has achieved widespread commercial adoption yet. D-Wave's technology is compelling, and its poor revenue performance may not reflect the real momentum that is building among customers. However, the company still very much faces an uphill battle if it is to lead the quantum industry in its efforts to revolutionize computing across the board. The article "The Bull Case for D-Wave After a Disappointing Earnings Season" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Quantum computing remains one of Wall Street's highest-risk, highest-reward themes, and the latest earnings season gave investors a fresh reason to compare two of the sector's biggest names. While Rigetti Computing RGTI and IonQ IONQ are pursuing different technology road maps, both used their second-quarter 2026 updates to showcase accelerating commercial traction and ambitious scaling plans. IONQ delivered the bigger financial headline. Revenues surged 287% year over year to $80.1 million, marking its fifth straight record quarter, while management raised full-year revenue guidance to $280-$290 million. The company also strengthened its vertically integrated strategy through the SkyWater acquisition and highlighted progress toward semiconductor-based 256-qubit systems. Rigetti's numbers were smaller, with revenues climbing 185% to $5.1 million, but its quarter centered on execution. The company advanced its 108-qubit Cepheus-1 platform, reiterated its chiplet-based roadmap toward 1,000 qubits and secured a Department of Commerce letter of intent for up to $100 million in potential CHIPS Act funding. Investors have rewarded the stronger commercial momentum. Over the past month, IONQ and RGTI’s shares have gained 14.3% and 4.6%, respectively, reflecting greater confidence in IonQ's near-term execution. Still, Rigetti's government backing, modular architecture and hybrid computing partnerships suggest this race is about more than today's revenue figures. Image Source: Zacks Investment Research Let's get into more detail. Rigetti's second quarter reinforced its execution-focused investment case as revenue rose 185% year over year to $5.1 million, driven by on-premises Novera QPU sales, while gross margin expanded to 43% from 31% a year ago. The company also advanced its 108-qubit Cepheus-1 platform, reaffirmed its chiplet-based roadmap toward 1,000 qubits, secured a U.S. Department of Commerce letter of intent for up to $100 million in potential CHIPS Act funding and maintained a strong balance sheet with $541.3 million in cash and investments and no debt. Rigetti's biggest challenge remains translating technical progress into sustained commercial scale. Despite strong revenue growth, quarterly sales remain modest at $5.1 million, while operating expenses increased to $30.3 million as the company continued investing heavily in R&D, fabrication, refrigeration infrastructure and chip development. The company also needs to deliver meaningful improvements in Cepheus-1's gate fidelity and coherence times while executing on its ambitious 1,000-qubit roadmap, with the proposed CHIPS Act funding still awaiting a definitive agreement. IonQ strengthened its leadership position in the second quarter as revenue surged 287% year over year to $80.1 million, while organic revenue climbed 132%. The company continued expanding its commercial footprint, with 60% of revenues coming from commercial customers, 50% from international markets and 25% from multiproduct sales, while remaining performance obligations jumped to $485 million. IonQ also raised its 2026 revenue guidance to $280-$290 million and reinforced its full-stack strategy through the SkyWater acquisition and growing exposure across quantum computing, networking, security and defense. IonQ's rapid expansion continues to come with elevated costs and execution demands. The company posted an adjusted EBITDA loss of $120.3 million during the quarter, while SkyWater-related investments increased near-term spending as it accelerated product development and supply chain integration. Although the $1.8 billion SkyWater acquisition strengthens IonQ's long-term manufacturing strategy, it also raises the complexity of integrating operations while delivering on an ambitious roadmap spanning semiconductor-based quantum hardware, networking and security solutions. For the full year, the Zacks Consensus Estimate for RGTI’s bottom line is pegged at a loss of 19 cents per share, implying a 70.3% improvement over the 2025 reported figure. Image Source: Zacks Investment Research The Zacks Consensus Estimate for IONQ’S 2026 bottom line is pegged at a loss of $1.19 per share, implying 34.6% growth over the 2025 reported loss. Image Source: Zacks Investment Research Based on short-term price targets offered by 12 analysts, the average price target for IonQ represents an increase of 55.1% from the last closing price of $44.86. Image Source: Zacks Investment Research Based on short-term price targets offered by 11 analysts, the average price target for RGTI represents an increase of 64.99% from the last closing price of $17.91. Image Source: Zacks Investment Research IonQ appears to have won the second-quarter earnings battle with far stronger revenue growth, higher commercial traction and a raised 2026 outlook, while Rigetti's update leaned more on technical milestones and long-term execution. However, neither stock currently carries a favorable Zacks rating. IonQ carries a Zacks Rank #4 (Sell), while Rigetti carries a Zacks Rank #5 (Strong Sell), suggesting weaker near-term expectations for both. Given IonQ's stronger operating momentum but elevated spending and integration risks, and Rigetti's earlier-stage commercial profile, investors may prefer to stay on the sidelines until fundamentals improve and their Zacks ratings turn more favorable. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 IonQ, Inc. (IONQ) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

After a volatile stretch for quantum stocks, second-quarter 2026 results from IonQ IONQ and Quantum Computing Inc. QUBT or QCi, both offer long-term opportunity. IonQ clearly delivered the larger headline numbers. Revenues reached $80.1 million, up 287% year over year, while management raised 2026 revenue guidance to $280 million-$290 million. Yet QUBT may have delivered the more intriguing strategic quarter. Revenues jumped to $5.6 million from just $61,000 a year earlier. QCi also added Fab 2 through NHanced, prepared NeuraWave for deployment and installed Dirac-3 at a global consulting firm. The company ended June with $1.3 billion in cash, equivalents and investments. Its backlog was $42.5 million. Image Source: Zacks Investment Research Over the past 30 days, IONQ shares have gained 24.9%, compared with 12.1% for QUBT. Investors are still giving greater weight to IONQ’s stronger revenue growth and near-term commercialization progress. However, QUBT’s latest quarter points to a broader strategy, spanning photonics, chip manufacturing and quantum computing. While these businesses are still at different stages of commercialization, they give QUBT multiple potential sources of future revenues. Let's get into more detail. QUBT’s second-quarter revenues jumped to $5.6 million from $61,000 a year earlier and $3.7 million in the first quarter. Cash, cash equivalents and investments were $1.3 billion. The company also completed its NHanced Semiconductors acquisition, launching Fab 2 and expanding advanced packaging and U.S.-based semiconductor manufacturing. Commercial validation is emerging through the deployment of its Dirac-3 optimization machine, NeuraWave’s commercial readiness and a Planck Dynamics agreement that could support deployments of up to 100 systems with potential value exceeding $10 million, subject to milestones. The biggest concern is that QUBT remains at a very early revenue scale relative to its ambitious technology portfolio. Despite the revenue surge, second-quarter operating expenses more than doubled to $21.8 million, including $7.3 million of acquisition-related costs. The company also spent approximately $180 million on its three 2026 acquisitions, reducing cash and investments from roughly $1.5 billion at year-end 2025. With a $42.5 million backlog, investors still need evidence that acquisitions, manufacturing expansion and photonics products can translate into sustained, scalable revenues rather than primarily increasing costs and complexity. IonQ enters the second half of 2026 with a substantially larger and faster-growing commercial revenue base than QUBT. Second-quarter revenues surged 287% year over year to $80.1 million, while organic revenue growth reached 132%. Commercial customers accounted for about 60% of revenues, international revenue for about 50% and multi-product revenue for about 25%. RPO increased 297% year over year and IonQ raised 2026 revenue guidance to $280-$290 million, excluding SkyWater. Its acquisition of SkyWater also creates a vertically integrated U.S. quantum platform, while recent DARPA, NRO, Sandia and Canadian initiatives broaden its exposure to government, defense, networking and sensing markets. IonQ’s growth remains expensive. Second-quarter adjusted EBITDA loss was $120.3 million, while GAAP net loss reached $1.87 billion, largely driven by a noncash warrant mark-to-market impact. SkyWater-related spending also increased near-term costs. Excluding SkyWater spending, adjusted EBITDA loss would have been $95.6 million. More importantly, the $1.8-billion SkyWater acquisition raises execution and integration demands even as IonQ accelerates its hardware roadmap. For the full year, the Zacks Consensus Estimate for IONQ’s bottom line is pegged at a loss of $1.19 per share, implying a 34.6% improvement over the 2025 reported figure. Image Source: Zacks Investment Research In contrast, the Zacks Consensus Estimate for QUBT’S 2026 bottom line is pegged at a loss of 18 cents per share, implying a 63.6% widening over the 2025 reported loss. Image Source: Zacks Investment Research As of Aug. 21, both stocks remained near their 50- and 200-day SMAs. IonQ traded slightly above its 50-day SMA and essentially at its 200-day SMA, signaling a relatively balanced trend after its recent recovery. Image Source: Zacks Investment Research QUBT, on Aug, 21, was also just above its 50-day SMA but remained below its 200-day SMA, indicating weaker longer-term momentum. Image Source: Zacks Investment Research Based on short-term price targets offered by 12 analysts, the average price target for IonQ represents an increase of 67.54% from the last closing price of $41.53. Image Source: Zacks Investment Research Based on short-term price targets offered by six analysts, the average price target for QUBT represents an increase of 125.18% from the last closing price of $8.14. Image Source: Zacks Investment Research Despite IONQ’s stronger revenue growth and commercialization progress, QUBT’s substantially higher 125.18% price-target upside makes it more attractive at present. This view also aligns with its Zacks Rank #3 (Hold), versus IONQ’s Zacks Rank #4 (Sell). Investors may consider booking profits in IONQ after its strong recent run, particularly given its elevated valuation, significant losses and integration risks following the SkyWater deal. Meanwhile, QUBT’s strategic expansion, strong liquidity and higher upside support a hold stance while investors await further execution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Quantum Computing Inc. (QUBT) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. IonQ (IONQ) stock is drawing investor attention after a series of recent updates, including strong Q2 results, higher full year 2026 revenue guidance, and several new quantum collaboration agreements. See our latest analysis for IonQ. IonQ's share price has been volatile, with the stock falling 5.81% over the past day but rising 26.85% on a 30 day share price return. The 1 year total shareholder return of 19.89% and very large 5 year total shareholder return suggest longer term momentum has been stronger than recent trading might imply. If IonQ's recent quantum contracts have you thinking about where else growth might emerge, this is a good moment to scan 24 quantum computing stocks for other potential opportunities. After IonQ's sharp 30 day run and mixed returns over the past year, the real debate is whether the recent contracts and revenue guidance still leave meaningful upside ahead or whether the stock has already priced in most of the good news. IonQ's most followed narrative pegs fair value at $48 per share, slightly above the last close at $44.12. That gap has drawn attention to what is driving the model. Read the complete narrative. The fair value hinges on how fast IonQ turns fast growing revenue into a wider platform and when losses start to narrow. The narrative leans heavily on contracted demand, product breadth and an ambitious roadmap to justify that $48 figure. Result: Fair Value of $48 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the narrative around IonQ could shift quickly if valuation expectations reset, or if integration of recent acquisitions and contracts proves slower or more complex than hoped. Find out about the key risks to this IonQ narrative. With IonQ's mix of promise and concern front of mind, this is a good time to review the data yourself and test the current sentiment. To see both sides of the story in one place, start with the 1 key reward and 3 important warning signs. If IonQ has sharpened your focus, do not stop here. Use fresh data driven shortlists to spot other stocks that might suit your goals before the crowd catches on. Target potential mispricings by reviewing companies flagged in the 50 high quality undervalued stocks. Strengthen your defensive side by checking out the 79 resilient stocks with low risk scores. Hunt for early stage potential by running through the 21 elite penny stocks with strong financials. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IONQ. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

IonQ IONQ has witnessed a notable rebound since its Aug. 5, 2026, second-quarter earnings release, with shares surging 15.9% since then, outperforming Rigetti Computing’s RGTI 12.1% gain and D-Wave Quantum’s QBTS 1% decline. Importantly, this momentum follows a massive July selloff that sharply reset valuations across pure-play quantum stocks, with IonQ among the hardest hit. The post-earnings recovery reflects improving fundamental momentum. IonQ reported a strong revenue increase of 287% year over year, while remaining performance obligations reached $485 million. The company also raised its 2026 revenue outlook to $280-$290 million. Image Source: Zacks Investment Research The completion of the SkyWater acquisition further strengthens its vertically integrated, U.S.-based manufacturing strategy and quantum roadmap. With quantum computing gaining strategic importance amid rising government and enterprise investment, investors should now thoroughly reassess IonQ’s execution, valuation and commercialization trajectory for potentially significant 2026 upside. Stronger Fundamentals:  IonQ delivered 287% year-over-year revenue growth and 20% above the midpoint of its prior guidance. Growth was driven by global deployments of its Tempo systems, cloud utilization and broader commercial momentum. Importantly, 60% of revenues came from commercial customers, while international and multi-product revenues represented about 50% and 25%, respectively. RPO also climbed 297% year over year, supporting the company’s decision to raise 2026 revenue guidance to $280-$290 million. Management expects $135-$145 million of revenues in the second half and does not anticipate a sequential revenue decline, pointing to continued growth through year-end. The 2026 outlook also assumes more than 100% organic growth and excludes any contribution from the recently completed SkyWater acquisition, leaving potential upside if the integration and commercialization strategy progresses as planned. Favorable Policy and Strategic Backdrop: The June 22 White House executive order explicitly called for accelerating the commercialization and deployment of quantum computing, sensing and networking, while also strengthening domestic quantum supply chains and manufacturing. This aligns closely with IonQ’s July 31 completion of its SkyWater acquisition, which creates a vertically integrated U.S. quantum platform. The second-quarter update also cited new defense and national-security initiatives with Anduril and Sandia National Laboratories, potentially expanding IonQ’s addressable government market. The Zacks Consensus Estimate for IONQ’s third-quarter and 2026 EPS is pegged at a loss of 26 cents and a loss of $1.19 per share, respectively, implying 92.74% and 34.6% improvements over year-ago reported figures. Image Source: Zacks Investment Research Image Source: Zacks Investment Research Technically, the chart shows IONQ is currently slightly above its 50-day SMA and above its 200-day SMA, indicating that the recent post-earnings rebound has pushed the stock back above both key trend indicators. The move above the 200-day SMA is notable after the July selloff and suggests that near-term momentum is improving. However, the narrow gap between the stock price and both moving averages indicates that the recovery is yet to establish a strong technical cushion. The valuation remains demanding despite the recent pullback. IONQ is currently trading at 46.51x P/S versus 5.03x for the S&P 500, a roughly 9.2x premium. While below its three-year median of 67.48x, the premium leaves limited room for execution missteps. Image Source: Zacks Investment Research IonQ’s improving fundamentals and quantum-computing progress support its long-term prospects, but the near-term risk-reward profile appears less attractive following the recent rally. Also, limited cushion above its 50- and 200-day moving averages suggests that much of the near-term optimism may already be priced in. The stock carries a Zacks Rank #4 (Sell) and trades at 46.51x sales, significantly above the broader market. With shares already up 15.9% since the second-quarter release, investors may consider locking in gains while reassessing the stock after its strong recovery. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 IonQ, Inc. (IONQ) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

On August 5, IonQ (NYSE:IONQ) delivered the strongest quarter in its history, yet the stock still trades well below where it stood a year ago. That gap sits at the center of the quantum computing story right now: a business growing revenue at triple-digit rates while burning cash faster every quarter. Investors chasing the "quantum is the new AI" trade have to decide which number matters more. Second-quarter revenue hit $80.1 million, up 287% year-over-year and about 20% above the midpoint of IonQ's own guidance, marking its fifth straight quarter of record results. Remaining performance obligations, a measure of contracted future revenue, jumped to $485 million from $122 million a year earlier, and management raised full-year guidance to $280 million to $290 million. The manufacturing story is catching up. IonQ closed its $1.8 billion acquisition of semiconductor foundry SkyWater and used that partnership to produce its first fully integrated quantum processing chips, now being tested at its College Park facility ahead of a 256-qubit system targeted for 2027. IonQ also reported breakeven quantum error correction using qLDPC codes on a test system, a step toward the fault-tolerant machines the whole industry is chasing. The platform keeps widening too. Multiproduct sales, customers buying more than one IonQ offering, grew 40% year over year and now make up about a quarter of quarterly revenue. IonQ launched a new quantum key distribution product, acquired photonics start-up Nexus Photonics, and now has 84 Skyloom optical communication terminals in orbit, double the year-ago count. Separately, its research pairing trapped-ion hardware with classical AI models points to an energy break-even around 34 qubits, aimed at AI's power problem. None of this came cheap. Operating expenses reached $417.3 million for the quarter, with $160.6 million going to R&D, and adjusted EBITDA came in at negative $120.3 million. The operating loss for the quarter was $337 million, and free cash flow burn has climbed to roughly $570 million, worsening even as revenue scales. GAAP net loss hit $1.9 billion, though most of that was traced to a noncash $1.6 billion mark-to-market charge on warrant valuations rather than the underlying business. The stock has felt that tension. Shares fell 31.6% in July amid heavy insider selling and a broader pullback from high-risk names, leaving IonQ about 47% below the all-time highs it set in late 2025. Share count has also nearly doubled over the past three years as the company has repeatedly tapped equity markets to fund its losses, a real headwind to per-share value. Layer in that fault-tolerant, commercially useful quantum computing remains years away, and IonQ still faces competition from larger, better-capitalized players. Hedge fund ownership climbed to 39 funds from 28 the prior quarter, which points to institutions building rather than trimming positions. Short interest sits at 12.44% of float, a heavy level that signals real organized skepticism but can also fuel a sharp rally if sentiment turns. IonQ's numbers this quarter make a real case that the business is scaling faster than almost anyone expected a year ago. But the losses, the dilution, and the valuation are scaling right alongside it, and none of those pressures eased with the SkyWater deal. For the bullish case to hold, the SkyWater integration and the 2027 chip roadmap need to keep landing on schedule. While we acknowledge the potential of IONQ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Future Stocks to Buy Under $10 and 12 Best Performing Semiconductor Stocks to Invest In. Disclosure: None. Follow Insider Monkey on Google News.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 4:30 p.m. ET Director of Investor Relations - Hanley Donofrio Chairman and Chief Executive Officer - Niccolo de Masi Chief Operating Officer and Chief Financial Officer - Inder Singh Operator: Good afternoon, and welcome to IonQ Second Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Hanley Donofrio, Director of Investor Relations. Please go ahead. Hanley Donofrio: Thank you. Good afternoon, everyone, and welcome to IonQ's Second Quarter 2026 Earnings Call. My name is Hanley Donofrio, and I am the Investor Relations Director here at IonQ. I'm pleased to be joined on today's call by Niccolo de Masi, IonQ's Chairman and Chief Executive Officer; and Inder Singh, IonQ's Chief Operating Officer and Chief Financial Officer. By now, everyone should have access to the company's second quarter 2026 earnings release issued this afternoon, which is available on the SEC's website and on the Investor Relations section of our website at investors.ionq.com. Please note that on today's call, management will refer to non-GAAP financial measures. While the company believes these non-GAAP financial measures provide useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. You are directed to our earnings release for a reconciliation of adjusted EBITDA and adjusted EPS to the closest comparable GAAP measures. During the call, we will discuss our business outlook and make forward-looking statements, including those regarding our guidance for 2026. These comments are based on our predictions and expectations as of today and are not guarantees of future performance. Actual events or results could differ materially due to a number of risks and uncertainties. Therefore, you should not put undue reliance on those statements. We refer you to our SEC filings, including our annual report on Form 10-K for the year ended December 31, 2025, and our quarterly report on Form 10-Q for the quarter ended June 30, 2026, for a more detailed discussion of those risks and uncertainties. We undertake no obligation to revise any statements to reflect changes that occur after this call, except as required by law. Now I will turn it over to Niccolo de Masi, Chairman and CEO of IonQ. Niccolo de Masi: Thank you all for joining us today. I am pleased to report that IonQ delivered second quarter revenue of $80.1 million, representing 287% year-on-year growth. This means Q2 2026 is the strongest quarter in IonQ's history and our fifth consecutive quarter of record results. As shown on Slide 4 of this quarter's investor presentation, this performance reflects momentum across our entire quantum platform, spanning quantum computing, quantum networking, quantum security and quantum sensing. Following the successful close of our acquisition of SkyWater, our platform now also includes quantum semiconductor manufacturing. Inder will take you through the financial results and outlook in more detail. I want to center my remarks today on 3 key areas defining our progress. First, manufacturing our industry-leading quantum systems on a semiconductor road map with SkyWater. Second, expanding our role as a merchant supplier to the U.S. and allied quantum ecosystem. And third, delivering defense in depth via a complete quantum-safe cybersecurity stack as we accelerate the timeline for full fault-tolerant quantum computing. Beginning now on our quantum computing achievements and the production of quantum systems with semiconductor manufacturing. One year ago, we announced that IonQ would move our pioneering and commercially successful trapped ion architecture from laser-based control to electronic qubit control. This is a globally unique and powerful control approach, allowing us to rapidly scale our trapped ion systems into the millions of qubits using well-established semiconductor pathways. For our customers, electronic control facilitates more seamless standard enterprise workflows while delivering the lowest cost and lowest energy footprint per logical qubit on the market. IonQ has been consistently executing against this major initiative over the past year. Let me recap that progress because the pace has been extraordinary. For those following along in our investor presentation, please see Slide 5. Last September, we closed our acquisition of Oxford Ionics, bringing the pioneers of electronic qubit control into IonQ. In October last year, we published results setting the new world record in two-qubit gate fidelities, demonstrating 99.99% fidelity without ground state cooling. These results proved that electronic qubit control enables world-leading performance via a scalable and production-ready semiconductor manufacturing process. In February 2026, we announced that we had progressed through 3 rounds of tape-outs for our first semiconductor-based quantum chip, and we're preparing to hand those designs to the foundry for production. In May 2026, we reported that we had received our first chip prototypes back. These prototypes demonstrated the critical quality metrics required for our production-grade 256-qubit chips, while also approaching those required for our 10,000-qubit chips. Each milestone has reduced execution risk and positioned IonQ to create value for our customers and shareholders. I am proud to report that this quarter, we received our first fully featured, fully integrated QPUs back from SkyWater, and they are now undergoing testing in our College Park facility. These chips consolidate all the individual capabilities validated by our last few months of prototyping into a single unified chip architecture. Having a full QPU prototype like this is what enables us to start testing integrated systems. These QPUs represent a pivotal milestone in our compute road map and a powerful testament to what IonQ and SkyWater can achieve together. We have moved with conviction to demonstrate our 256-qubit technology and plan to begin commissioning systems in 2027. We are also advancing our control software and system architecture. For those following along in our investor presentation, please turn to Slide 6. In April of this year, we released our walking cat architecture, which is the industry's first end-to-end detailed manufacturable blueprint of a fault-tolerant quantum computer. This historic paper shows how fault-tolerant IonQ systems will execute operations while actively correcting errors. Importantly, this is an architecture that will scale with us as we grow our systems to millions of qubits. This quarter, we validated key elements of our walking cat architecture on our hardware. IonQ achieved a major milestone by demonstrating breakeven quantum error correction using qLDPC codes on a Tempo engineering test system. Our published results this quarter are a major validation of our quantum error correction capabilities, which IonQ is proud to continue pioneering. These technical accomplishments demonstrate IonQ's industry-leading position, rapid commercial advancement and tangible value creation potential. Now let me turn to SkyWater and IonQ's expanding role as a merchant supplier to the U.S. and allied quantum ecosystem. Last week, we closed our $1.8 billion acquisition of SkyWater, creating the only vertically integrated full-stack quantum platform company. Together, IonQ and SkyWater own the design, fabrication, packaging and deployment of our systems, entirely onshore, entirely in trusted U.S. facilities. For IonQ and our partners, this has a profound impact, as seen on Slide 7. This is a transformational combination that enables IonQ to materially accelerate our quantum computing road map and our ability to design, test and iterate on QPUs at speed. Oxford Ionics brought us proprietary world-leading electronic qubit control technology to scale qubit counts on standard silicon. SkyWater brings a world-class semiconductor foundry under our own roof to fabricate those designs. This past quarter, we closed the loop. QPUs designed with electronic qubit control built at SkyWater and returned to us as our first fully featured chips. IonQ and SkyWater have together carried a design from concept to fabrication, proof that our strategy is translating into results. As you can see on Slide 8, with SkyWater, we're also pleased to expand our role as the leading merchant supplier to the broader quantum ecosystem. Even before the acquisition, IonQ served as an important merchant supplier with our industry-leading atomic clocks, sensors and networking products being sold to other leading quantum companies. With SkyWater semiconductor technology supporting multiple QPU modalities, IonQ is now the world's largest quantum merchant supplier, delivering the critical technologies every quantum company needs. Our goal is to accelerate all quantum companies working with us, ions, atoms, superconductors, photonics, sensors and networks. I'm also pleased to share that we are further expanding our merchant supplier capabilities in Q2 through our acquisition of UC Santa Barbara's spin-off, Nexus Photonics. Nexus brings foundational technologies that enable chip scale integration of lasers, modulators and optical subsystems for the miniaturization and mass manufacture of quantum systems. We have already begun integrating these solutions into our next-generation atomic clocks and gravimeters. For quantum networking, these integrated photonics capabilities move us closer to data center scale distributed quantum systems. We plan to supply these critical integrated components to the broader quantum ecosystem as part of the industry's first dedicated quantum photonics foundry offering at SkyWater. As the cornerstone quantum merchant supplier across the U.S. and allied landscape, we have the procedures in place to protect our customers' IP and can assure our customers a partnership focused on accelerating their road maps. Turning to Slide 9. I want to now address quantum security and Q-Day, a topic rapidly moving to the forefront of boardrooms and defense agencies around the world. Quantum computing is a paradigm shift, not only for every aspect of applied science, but also for cybersecurity. As I foretold a year ago, the timeline for cryptographically relevant machines that threaten RSA encryption is rapidly compressing. Over the past 15 years, the estimated number of qubits needed to break encryption has dropped by 4 orders of magnitude. Simultaneously, IonQ is accelerating our path to 10,000 qubits in 2027, positioning us at the forefront of this security reality. As you can see on Slide 10, IonQ uniquely provides defense-in-depth via our complete quantum-safe cybersecurity stack. Post-quantum cryptography is a critical first step in protecting existing infrastructure at scale. Longer-term resilience, however, will increasingly rely on advanced quantum communications technologies, including quantum key distribution. To meet those needs, this quarter, we launched a new QKD product that allows customers to send multiple data types across existing municipal fiber networks, making enterprise-grade quantum security practical, deployable and cheaper to operate. We welcome the U.S. administration's June 22 quantum executive orders, which recognize that quantum technologies are inflecting. Quantum leadership is emerging as the defining technological competition of not only our lifetimes, but I expect of the 21st century itself. We enter the second half of this year as a clear technology leader, critical merchant supplier and vital ecosystem enabler for the entire quantum industry. With SkyWater now a part of IonQ, we are derisking and accelerating multiple engineering pathways for our next-generation quantum chips. In parallel, we are also helping to create the manufacturing and supply chain foundation required to accelerate and scale the entire U.S. and allied quantum industry. In closing, I will say that our conviction is that quantum, like classical before it, ultimately scales on a semiconductor foundation. That is why we have built a manufacturable silicon-based platform and why we are increasingly focused on the measures that determine real-world value, cost and energy per logical qubit and the cost and time to solution. Those are the metrics that allow quantum computing to serve industry and government dependently and at scale. Around all of it sits an interoperable software and enablement stack with an access strategy that spans on-prem deployments and every major public cloud. This is what defining an industry looks like. I'm now delighted to hand over the call to Inder. Inder Singh: Thank you very much, Niccolo. Very, very excited to be reporting our strongest quarter ever in the history of the company. And as Niccolo said, delivering $80.1 million in GAAP revenue, which is 287% growth year-on-year. Not only was it our strongest quarter ever, it also exceeded our own expectations by 20%. We continue to be pleased by our progress in the market, and that progress is being validated by the financial outcomes we are seeing and reporting to you today. As I cover our financials in greater detail, you can also see some of this in our investor presentation, starting on Page 12. The largest driver of our revenue outperformance this quarter was the continued momentum of deploying our fifth-generation quantum computing systems. This quarter, we began shipments of subsystems to the Korea Institute of Science and Technology Information, or KISTI, and those systems are currently being delivered and assembled in Korea at the customer site. Similarly, with QuantumBasel in Switzerland, our fifth-generation machine is now in final assembly on site right next to the fourth-generation machine they had previously purchased from us. I believe this represents the world's first deployment of 2 consecutive generations of quantum computers next to each other in a commercial setting ever. Recall that we had told you previously, we were ramping production to do exactly this: deliver multiple global systems at once and at scale. The bottom line is that we continue to innovate in ways no one else has done so far and at a velocity that we also think is incomparable. Speaking of organic growth within that, our Q2 organic revenues grew 132% year-over-year. Based on these global quantum computer deployments that I mentioned and others, I would remind you, for the full year, we are still expecting organic revenue to grow 100% as we guided at the very start of the year. I'm delighted to see that the acceleration at least in the current quarter is showing the strength of that business. This year, Tempo quantum computing revenues are the principal driver. And next year, we expect our semiconductor-based computers, as Niccolo just mentioned, to become the main driver and the future in our road map as we shift from laser-based to electronic-based control of qubits. We also have made excellent progress across our space-based products. And recently, we reported that we now have 84 Skyloom optical communication terminals deployed on orbit, which is double the number from just a year ago. We also began work during the quarter for the U.S. Space Development Agency with the HALO Europa contract, completing key design milestones on the path to delivering functioning satellites into orbit to support a multimodal constellation, prime for quantum solutions. All of these achievements show the progress that we're making across our product portfolio. As we've done in recent quarters, let me now provide some metrics related to the drivers of our revenue. And these will be around geography, commercial and multiproduct. I would remind you that we are sharing these in the spirit of transparency and as color. But as you can imagine, these can vary in any particular quarter. Together, Niccolo and I, when we focus on the business, focus on the trends of these, and we're very encouraged by what we're seeing. Let me start by talking about geography first. Approximately 50% of our revenue in the quarter was derived from international customers, spanning countries such as Australia, South Korea, Portugal, India, Denmark, Germany, Israel, Japan, just to name some. This quarter was especially strong for the international metric due to our quantum computing deployments, as I mentioned, in KISTI and QuantumBasel. We are delivering solutions in over 50 countries around the world, and we have inbound inquiries from many more. We may not turn all those into customers, of course, because pipelines are very, very large and also require effort, and we believe we can win in the majority of those, but the breadth of countries we are looking at also -- we want to make sure we remain focused on our best investments for the best ROI. The second revenue metric is commercial revenue. In the quarter, we once again saw 60% of our revenue come from commercial, meaning non-U.S. government customers. This tells us that our customers are putting our solutions to work in real-world applications, not just in funding research. We, of course, expect government to grow. And of course, this could skew the metric and become more government in any given quarter. Of course, I'll take that happily. Third, we continue to be excited about the multiproduct dimension of our revenues, and we believe there's a lot more we can be doing here. As an example, one very obvious example is to drive both sales of quantum computing and quantum security, which are 2 things we're really starting to see in high demand among our portfolio. To me, this is low-hanging fruit, and the sales team are working to create the incentives to make things happen and turn into revenue even more than we're seeing. On a year-over-year basis, our multiproduct sales grew by 40% and now comprise about 25% of this quarter's revenue. This represents strong growth year-on-year, of course, a priority for us remains diligently driving our cross-selling opportunity even higher. Having more than one product means we can sell more things at one time. Let me now discuss our remaining performance obligations, or RPOs, a widely used measure of forward revenue visibility. We ended Q2 with $485 million in reported RPOs, up from $470 million in Q1 and up from $122 million 1 year ago. This is even though we had one of the strongest quarters. So we drew down RPOs into revenue, as you know, happens, and we replenished it and then some as well. RPOs, of course, can vary from quarter-to-quarter, but at any one point in time, they provide visibility into revenues that will turn -- that will appear in more than 1 year. So we like to have that visibility. And as we try to grow this business and continue growing it, this will remain a focus for us. Turning now to operating expenses. GAAP operating expenses for the quarter were $417.3 million or $201.2 million on a non-GAAP basis. Our largest area of OpEx continues to be R&D as we pioneer transformational quantum technologies and fuel our innovation engine. $160.6 million of our GAAP OpEx consisted of R&D. In addition to R&D, as we've told you last quarter, we're also investing in go-to-market resources as the enterprise opportunities -- enterprise-wide opportunities for us continue to emerge. Overall, our investment approach is to focus on execution and to creating operating leverage over time. By ramping our manufacturing to meet demand, an effort that SkyWater will help us with further, we are now already delivering multiple global compute systems simultaneously, and we're preparing to do even more next year. Moving forward, we will continue to strengthen operations by optimizing our supply chain and consolidating operations across the company. And we'll maintain a tight discipline on all things quantum and investments in those areas. And through vertical integration with SkyWater, as Niccolo noted, we expect to be able to lower IonQ's total development costs for quantum hardware over time, delivering industry-leading cost per qubit and create further structural cost advantage. Our focus on long-term investment allows us to attract industry-leading talent density, create innovation velocity and drive operating performance. Our capital strength also allows us to invest for the long term, which is essential, of course, in quantum, even as we execute quarter-to-quarter to quarter. Moving on to adjusted EBITDA. We reported negative $120.3 million for the second quarter. As we reported last quarter, our spending with SkyWater increased as we found success accelerating our technology road map. This quarter, that higher spend resulted in about $20 million of additional spending included in that number. Additionally, we had approximately $10 million of higher investment related to pre-integration costs, scaling the business really in anticipation of SkyWater's close and also to securing our supply chain. As most of you already know, our GAAP net income is volatile from quarter-to-quarter and depends on warrant valuations. We reported a GAAP net loss of negative $1.9 billion for the second quarter, primarily due to a roughly $1.6 billion noncash impact from the mark-to-market valuation of warrants as required by accounting conventions. Needless to say, this accounting impact does not reflect the operating fundamentals of our business. Let me say, we are very excited to welcome SkyWater into IonQ. I'm pleased to welcome Tom and his team to execute on our world-leading technology road map and work together with us as we deliver solutions for our customers. As a reminder, because IonQ and SkyWater operated as separate public companies throughout the second quarter, today's results and any guidance we provide only includes financials from IonQ. SkyWater is expected to file its own 10-Q for the second quarter in the coming days. Now turning to guidance. We had a tremendous quarter, outperforming even our own expectations, and we are raising our full year guidance for IonQ to a range of $280 million to $290 million in revenue. This guidance range applied only to IonQ, as I mentioned. Because we have operated as a combined company for less than a week, we need to integrate our operations before providing combined company revenue or EBITDA guidance. A number of things will be looked at. For example, we estimate that our full year spending with SkyWater under our commercial agreement would have been approximately $120 million of spending for us, converting into revenue for them in fiscal year 2026. Following the close, we will be looking at eliminating some of this intercompany revenue and other costs as well. There are additional accounting adjustments that are required as our companies merge, such as, of course, purchase price accounting treatment and some contracts we have to look at as well. So we will come back to you with combined guidance down the road. But for today, we're talking principally about IonQ. In summary, we delivered a spectacular quarter of phenomenal growth, and we could not be more bullish on the long term and the potential for our company. We recognize, as with any company, execution is always key, and there are always risks that we must work to mitigate, and we are laser-focused on ensuring we do that. We continue to expect approximately 100% growth in our organic business and 100% growth in our quantum platform strategy as well. With that, I'd like to turn the call over to the operator for Q&A. Operator? Operator: [Operator Instructions] The first question comes from Kevin Garrigan with Jefferies. Kevin Garrigan: Congrats on the great results. Just to start, regarding the Anduril and Sandia MOUs, what are kind of the next steps for converting these into development contracts or system deployments? And are there any dollars that are currently included in RPO or the 2026 revenue outlook from these? Inder Singh: I'll take the second part of the question for sure. I think there are no dollars that we included in RPOs from future business coming from that relationship. We are incredibly excited about that relationship though. It brings together sort of the best of quantum solutions we have and the solutions they have as well. So we think there's a lot of potential going forward. But no, we have not included anything in RPOs for what we might get from that. Niccolo de Masi: Yes. Look, all I would add is, obviously, the White House has issued a couple important executive orders, right, one on quantum security and one on quantum computing, sensing and networking. Taking them together, it's a great reflection of IonQ's total platform strategy, right? I think we're the only quantum company in the world, probably the only company in the world that can say we actually embody all aspects of both executive orders in their totality. And so these MOUs are obviously very much a recognition of the fact that we have a lot to bring to bear to help not just our nation's government labs and some of the most historic and important ones out there, but also, of course, support the Department of War with a range of applications, which obviously we haven't fully enumerated because not only of the confidentiality involved in these projects, but also, as you rightly pointed out, and Inder rightly addressed, this is not yet in our numbers because it is still in an early stage. We'll report more on these as they develop. Not only is there an earnings call, but we have an Analyst Day coming up also. Investor Day coming up on September 8. Kevin Garrigan: Yes. Okay. Got it. Perfect. And then as a follow-up, so the 25% of customers that are now utilizing multiple products, what products are most frequently bundled together? And are those engagements generating larger contracts or higher renewals that you're seeing? Inder Singh: Well, I think they're creating a stickiness environment for us, most importantly, and having a one-stop shop where customers can come and get what they need now and then get what they need next. Those are good validators. I've seen that, and Niccolo has seen that in the dozen-plus companies that he's been in as well. So it's an important indicator for us that we have the right solutions under one roof. And also, to your point, like the most natural things that we're seeing happen are groupings of products, for example, in the sensing and space environment, which we mentioned earlier, but also the demand for computing, which continues to just be -- I'll use the loose word [Foreign Language] for us, is also now causing a lot of companies, especially with the executive order that came out recently around preparing for a post-quantum Q-Day type of environment for security, frankly, to become more of a topic. So more and more customers are talking about security. And in many cases, they're also saying, let's look at your computer use cases. We're happy to see all of that happening. Networking obviously comes in as the next thing in terms of connecting nodes together and also connecting compute devices together. And I think it's a matter of time when we start to see sensing, perhaps, play into this in some way as well. But we're looking across the portfolio. We're happy to see multiple TAMs available to us, and we're happy to see some of the world-leading and if not the world-leading products in each one of those TAMs in our roof and allowing the sales team to take a land-and-expand approach in whatever makes sense for the customer, basically meeting the customer where they are. Operator: Our next question comes from Quinn Bolton -- Craig Ellis with B. Riley Securities. Craig Ellis: It's Craig Ellis. It seemed like there were 2 analysts called there, but I'll go ahead. So one, congratulations on closing the SkyWater deal, and congratulations to Tom and his team. The first question I wanted to follow up on was on the road map comments that you provided, Niccolo. What I wanted to understand is greater detail on what you're hoping to accomplish with the in-progress systems test. What are the key milestones that you want to be able to check off? And as we look at customer commissioning in the first half of the year, can you help us understand what the key executables are as you go from the system test to customer commissioning? Niccolo de Masi: Sure. Well, look, IonQ has had systems in the marketplace that have been able to run applications for the better part of a decade. We've been on all 3 public clouds, as I mentioned, since 2020 and early 2021. So we're no stranger to moving from prototypes to systems. We already have a compiler that works. We already know how to obviously run algorithms, and we've got a full-stack software team and control team, as I mentioned. The key shift for us from Tempo and where we've been building machines the last few years to today's Oxford Ionics and SkyWater electronic qubit control is, of course, that we are putting ion traps on a semiconductor chip, and we're scaling from there from not just 256 chips, but to 10,000 and obviously higher numbers, 100,000 and 1 million in the coming generations. Now we're doing a number of things in parallel here. So we are working on at least 3 generations of those chips at the same time. And so as I mentioned, we're making progress on the 10,000-qubit chip at the same time as we have taped out and nearly finalized prototypes of the 256-chip. You can imagine that there are then other components to getting a fully commissioned system into the marketplace. So it's the chip plus, of course, an enclosure and the rest of the kit and caboodle here. The chip was the hard part, candidly, which is why we have provided a lot of granularity in the last 6 months, last 9 months on the progress from closing Oxford Ionics in September last year to our February earnings call, our May earnings call and now our August call. So we're feeling great about the translation of a 30-year R&D base building full systems that we've been selling and putting in the marketplace and changing, kind of, the guts of the system, if you will, from bulk optics and lasers to the semiconductor electronic qubit control system. SkyWater has been delivering great as a commercial partner. Tom has been a great partner of ours in the last year. And we expect that closing this transaction will help obviously, on the margins, not only accelerate the entire industry, but of course, IonQ is part of that industry with our ion trap chips. So you'll get an update from us every earnings call and between that, if we have other Reg FD compliant events and conference calls and so on. But I think the bulk of the challenge here is now under our belt. Once we have chip prototypes that are coming off the line, the rest of this is a solved problem for us that we've done for many years. And so you're correct. We expect to be commissioning systems and deploying systems and getting the manufacturing lines spooled up in the first half of next year. And that remains all on track. Craig Ellis: That's helpful. Then the follow-up is for Inder. It's on the topic of the executive orders and just clarifying some of the interaction that you're seeing. Our checks since those were announced suggests that government agencies have been very active accelerating their activity with quantum entities. And you certainly have the broadest platform out there, a long time in the market with relevant capabilities. And so the question is, is the engagement that you're seeing post-executive order, really government entities? Or is it also enterprise customers? And to what extent would one of those groups be greater than the other? Inder Singh: Yes. Look, I think the nation at large is moving towards now adopting and implementing what the -- not just the spirit of what the EO is trying to do, but also trying to get there earlier. I think there's a realization that didn't exist 1 year, 1.5 years ago, that the evolution of quantum computing will be so rapid that IonQ will be able to generate computers at the rate we're generating them now. I say generating because we're almost like mass producing them and not quite yet. But each one is exponentially more powerful than the previous one. So as you go there much more quickly, the sense of urgency is rising. I would say that's happening not only in government, as you mentioned, but also importantly, in data-heavy industries. So financial services is definitely waking up to the cold hard reality that at some point, RSA-2048 and other encryption protocols such as ECC-256 may all be broken. And the debate is around, is it in 2 years, 3 years, less or more? I think you've heard from many companies now that, that is getting very, very close. In addition, the nation itself is thinking about an adversary or 2 or more around the world, frankly, who are also trying to get to the same outcome. And I think that did not exist as a dynamic. So we've had a number of calls, Niccolo meet CEOs all the time. Our sales team does. I joined many of those. And in each one, security now enters into the discussion. A year ago, it was about computing. Now it's about computing. How do I, of course, create more revenue? How can I use your solutions to do things that classical can't do? But equally, how can you protect me from the inevitable? And if the inevitable is 2 years away, 3 years away, it doesn't really matter. It's not 20 years away. So it's pretty broad-based. In parts of Asia, where we already have a very strong presence with our QKD solutions, that's been evident for a number of years. They live in a geopolitical environment where it's risky and every country is considering what to do. But we're seeing demand from around the world. And importantly, now we're seeing demand from the United States. I think that there's an understanding that you have to basically batten down the hatches, not just at the software level with PQC, but also at the hardware level, things that will protect your crown jewels and allow you to have data in motion be secured end-to-end in a post-quantum world. So I think it's pretty broad-based. Some will move faster, others will lag. That's just natural. But those that are data-intensive industries, I think, are realizing that they need to protect for something that they have never seen before. I mean Mythos is frankly just the beginning. We're talking about a post-quantum environment in which everything that Mythos is able to exploit actually is rendered even less protective, and quantum will eclipse a lot of the things that Mythos is bringing to life today. Operator: Our next question comes from Joe Moore with Morgan Stanley. Gabriella Tulchinsky: This is Ella Tulchinsky on for Joe. So now that SkyWater is going to be part of IonQ, can you talk about how you see the foundry business evolving over time? Do you expect it to operate mainly in support of IonQ's own road map, serve the broader quantum ecosystem or both? And then how do you think about SkyWater's competitive positioning as more companies invest in quantum-focused manufacturing capabilities? Niccolo de Masi: Sure. I'll take those. So I think we've been very clear since we announced this transaction in January and again, today, on this call that we are a merchant supplier. We are the leading merchant supplier to the sector, and we have every intention of continuing both that posture and reality. And so as we have said the last 6 months, and I'll reiterate here, we are very focused on ensuring maximal IP protection for all customers. SkyWater comes with the pedigree doing that and a track record doing that, and has been very successful as the only quantum foundry in the United States the last few years. On a go-forward basis, just to be clear for everyone listening, when we say merchant supplier, by definition, we mean we are supporting the industry, and we're doing so with the highest degrees of physical and digital IP protections and physical and digital security. And so we are selling, of course, as I said, our atomic clocks, our integrated photonics, our quantum networking solutions, and now also our quantum foundry solutions, all under the umbrella of SkyWater as a merchant supplier. This will not change. We are a reliable partner. This is a key part of our commitment to our industry and to our nation. We think it's important for both national security purposes and national economic security. And to answer your second question, SkyWater is the only quantum foundry that operates today. They also operate at a price point in the 200-millimeter segment that we think is going to remain incredibly compelling for the foreseeable, if not even distant future, for the quantum industry. So we have no doubt that our sector is growing. We have no doubt that our sector will have more quantum foundries over time. But obviously, it takes time to build new foundries, and SkyWater has been at this for the last decade. So we expect to be very busy, both busy supporting IonQ's vertically integrated ambitions and Oxford Ionics' ambitions with electronic qubit control, but also, as I mentioned, supporting every player in our sector who works with us presently or would like to begin working with us. And we're beginning those conversations now and finding everyone very receptive to it, whether or not you are in the superconducting modality or in photonics ions, atoms, et cetera. Operator: Our next question comes from Troy Jensen with Cantor Fitzgerald. Troy Jensen: Congrats on the great results. Niccolo, just to start with you, I'd just be curious if you could provide any kind of a DARPA QBI update. Obviously, you guys made it to Stage B, and I'm assuming there'll be a broader Stage C announcement soon. Niccolo de Masi: Yes. I mean I don't think that we are able to announce anything before DARPA does. And they've been, I think, pretty clear on that all the way through this program. So we will all have to watch this space. At the same time, I think, Troy, we have invested, obviously, aggressively not just the last 3 quarters, but the last 30 years to ensure that IonQ continues to lead this industry that we created. We built the world's first quantum logic gate in 1995. We've published the world's first shovel-ready blueprint for fault-tolerant quantum computing. And crucially, these are manufacturable, right? They're manufacturable at scale. They are at a compelling price point. They're at a very compelling energy consumption and, let's just say, space requirement perspective as well. So you can see half a dozen of these systems in 3 of our offices at this point as we're assembling prototypes and moving forward, not just on a 256-chip, but also a 10,000-chip and generations beyond that are in the design phase as well. So we're learning every quarter as we report these milestones. And we've been very focused, since I became the CEO of this company, on ensuring that quantum computing is a mass market reality, not a niche phenomenon, right? So we keep an eye on how we can make these machines robust, how we can make sure that they are affordable, not just to the government and to nation state buyers who want sovereign systems, which are important, and we will supply those and we do supply those. But we also foresee a day where enterprise can afford these in their entirety in their facilities. And where multiple branches of governments can afford them in their facilities, and control the data and the algorithms and the operation of these machines, which are really no larger than the machines we've been shipping the last half a decade or more. So we have a lot of experience in making this manufacturable. We think our approach, obviously, is commendable, both for national security and national economic security perspectives. We continue to work closely with DARPA, and we will update the market following DARPA's -- any announcement DARPA makes. I think we've been clear to announce things, Troy, on earnings calls, we're able to, and you've seen our other DARPA releases, right? So the DARPA HARQ program, H-A-R-Q, we announced earlier in the year. There are a number of DARPA programs that we're involved in when you look at the broader IonQ platform. So it's not just computing, but of course, it's networking and it's other aspects of what we'up to that I think you can assume that we are proudly involved in. Troy Jensen: Great. Great answer, Niccolo. Maybe a quick follow-up for Inder. On the commercial side, I guess I'm assuming most of the commercial may be security and maybe some other stuff, too. But I guess I'm most curious if there's going to be software in that. I know you guys talk a lot about software applications and working with partners. Would you guys actually own the software IP? Or are you just kind of partnering and selling the hardware that the IP can drive? Inder Singh: Yes, great question. We're delivering the full stack. So exactly as you noted, when we talk about total revenues or commercial revenues for that matter. It includes the hardware solutions that we have around quantum computing and the applications that may run on top of it. You can also actually ask for QCaaS service from us. So we talk about the delivery of machines, but we also provide quantum computing as a service. And we don't often spend a lot of time talking through that, but what we're finding is incredible growth, even faster than organic growth in computing, in QCaaS at the same time. That's a very high-margin business for us. So we're happy to see that developing. What owning the machine and owning a sovereign system allows you to do is create your own applications. And in many cases, the customers that we work with will ask for our help in creating some of those quantum solutions. In some of those cases, we may own the IP for generalized development of algorithms that we can apply elsewhere. In some cases, the customer will say they want to own it. So it meets the customer where they are. But yes, very much so, we have, probably under our roof, one of the largest, if not the largest algorithm development team in quantum in particular, and we're going to continue investing and building out that team. We've deployed it in 2 ways. One is centrally, to create algorithms that work across many different end markets for many different customers. And we've also deployed it directly with our sales team in technical sales, in helping the customer understand the application, build it for them, forward deploy engineers. Remember, we are building an ecosystem all around us. And yes, we're supporting other quantum computing players as well in their endeavors. This industry needs to grow together. We are the pacesetter. We deliver the hardware, we deliver the software, we deliver the security. We connect any machine to any machine. It's a philosophy, I think, that is a very scalable, but also very long-term resilient. So absolutely, high-margin software through application development, high-margin QCaaS services, even computing services, where the customer prefers that. Operator: Our next question comes from Gary Mobley with StoneX. Gary Mobley: You're effectively raising your full year outlook by $20 million at the top line. I think as well, you're also reiterating 100% organic revenue growth, same as last quarter. So help me reconcile what's changed in the last 90 days? Is it more contribution from some of the acquisitions that's driving the upside? And then what really drove the upside in the just reported June quarter? Inder Singh: Well, as I mentioned, I think that -- and thank you for the question. As I mentioned, our organic business actually grew 132% more than we thought it would be growing for the full year, actually. So we had a very strong quarter in organic, which essentially, if you think about computing, that's really what organic was in 2024. And we've seen that grow 80% in that 24% to 25% period. We talked about 100% growth this year, happened to be 132%. So you could argue that computing actually drove the largest portion of our growth. At the same time, as I mentioned, we had sales happening across the other product lines as well. So all of the cylinders are firing. They don't always fire at the same time in the same way, of course. So don't draw a straight line up into the right from any one of the data points. But we have a portfolio of products. We are no longer a one-trick pony. And I do think that we will see growth happening in the other areas like security, like networking, like sensing, like the things that we were talking about around putting high bandwidth, gigabit speed bandwidth, laser terminals into space, delivering solutions for sovereign either nations or sovereign enterprises that are looking for bandwidth and connectivity. So everything, I'm pleased to say, is really starting to show vectors of growth for us. And yes, computing organic grew the fastest. Gary Mobley: Okay. Great. And as a follow-up, I wanted to ask about SkyWater's business. Prior to you closing the acquisition, I believe the consensus revenue view was about $610 million. Inder, are you saying in consideration of the close, you have to figure out what intercompany revenue gets eliminated from that? And can you speak to how SkyWater's business has been trending? I would assume maybe there's some upside to that just given industry conditions out there in the semiconductor space. Inder Singh: Yes. Look, I'd love to be able to tell you that we've spent 3 months looking under the hood at SkyWater. We haven't, right? And that thing just received approval and we closed quickly on it, as you know, very, very recently. So it's days. The thing that I wanted to point out is the same thing we pointed out last quarter. We have had a commercial relationship with SkyWater to help us create the semiconductor road map and accelerate that road map. Niccolo pointed to the success we're seeing there. We fund SkyWater under that relationship. And the $120 million number I gave you is our view of what our forecast was for this year, which, by the way, was higher than what we thought at the beginning of the year, because we are seeing more success and spending more with them. And when we combine the 2 companies, intercompany revenues always get eliminated, as you know. So $120 million going out the door from our side, in theory, $120 million coming into their side would be intercompany at that point. So what I am saying is I'm not commenting on their number. They'll find their own Q tomorrow or the day after perhaps, probably Friday, I'm guessing. And you'll see more details in there. As we come back to you, and give us a few weeks, if not a month or so, to come back to you with what those eliminations are, I've given you a hint already. I think there's some other things we have to look at within their contract with their customers, et cetera, just fine-tune things. But we are very, very excited about having the ability to leverage their knowledge base, their foundries, help them expand their own service to the other quantum players. We bring capital to the table that, frankly, they did not have, right? So this is a very symbiotic combination of companies that's going to help the entire industry. But yes, there's some revenues on their side that we are part of their quantum ecosystem as well. I think we're their biggest customer already. That revenue has to be eliminated on consolidation. Operator: Our next question comes from John McPeake with Rosenblatt Securities. John McPeake: Nice upside to 2Q and guidance. Congrats on closing the deal and the organic growth. I like the [Foreign Language] Inder, you have 256 high-quality physical qubits commissioning in the first half of next year, path to 10,000. I would think this would be attracting serious interest from new customers. Is there any color you can give us there on interest? You guys do have the most aggressive timeline now. You have the fab, you're iterating. Niccolo de Masi: Yes. So look, I'll hand this to Inder as well. But I would just stand back and say, what we have been executing on the last 6, 7 quarters has taken this company from being, I think, a quantum computing company that's been around a long time to, I would argue strongly, the leading quantum computing company, but we don't stop there. We're doing a lot more quantum computing than we've ever done. We're doing it a lot faster. And we're obviously doing it in a manufacturable and robust way that has a path to full data center solutions at price points, energy consumption ratios and space that allow this to be an industrial solution for governments and enterprise. But we actually don't stop there, right? We're also leading the defense-in-depth of quantum cybersecurity and quantum security. We have, I think, all of the patents that matter for quantum networking so that you can build not just quantum memory and distributed quantum computing, but also distribute entanglement. We've talked about our atomic clocks and our quantum sensors. Those are gravimeters, inertial sensors, the most accurate atomic clocks in the world. And when you combine that with the fact that we're a full theater, full war-fighting domain platform, we have quantum solutions on submarines through the satellites. And we are advancing and investing in all of those growth vectors. None of these are an or. They are all an and, and we've reported the last few quarters on how many of our products are being taken, obviously, revenues coming from multiple product customers and partners. So I think the proof's in the numbers, right? We are probably about half of, I would say, the revenue in the whole sector, if not, the majority of the revenue in the entire public sector. And we're also, probably, the majority of the R&D spend as well. And so we're pleased with the fact that customer recognition is very much showing up quarter-on-quarter when you hear numbers like 287% growth year-on-year. And Inder just said in the prior call, it was mostly organic growing faster than we expected quarter-on-quarter. It's not the first time we've said that. So we think the White House executive orders are a nice reflection of the fact that quantum is inflecting. You can see that quantum is inflecting in our numbers. And you can see that there is the scale difference between what we are doing here across our quantum platform to deliver real-world solutions and revenue relative to any other company on the planet. So it's not just the technical road map that we are medium beating, but we're medium beating on the commercialization of quantum. And as Inder rightly said a few minutes ago, we are the pacesetter for the sector and the scale setter for the sector. And we have every intention of continuing to be both of those as we continue to invest to bring quantum to now and make quantum happen in weeks and months, not in years, right? And so we don't intend to take the pedal off -- foot off the pedal at any point and foot off the gas. We will continue investing to ensure that we are making things happen sooner than we thought. And we see great signs that all of that is achievable, possible. And the customers, for a variety of reasons, are realizing that as we invest, things happen sooner, things move to the left on our road map, as I've said before, right? A year ago, people thought that Q-Day was something happening in the 2030s. They now understand it's something happening in the 2020s. And the same thing has happened with our demonstrations of quantum advantage and higher, what's called, TRL levels, technology readiness levels, on our quantum sensors for deployment on submarines, satellites. Inder, you want to add to that? Inder Singh: And look, I think that covers the basis in terms of the things that we can bring to the table. I think one other thing I would just add for your calculus is we're going to be living in this hybrid world for a long time, even when it comes to security. We'll have classical security infrastructure already deployed, quantum security being deployed. We now are putting together the solutions to be able to scan networks and look for vulnerabilities that customers have on their networks against quantum. Others are doing it for classical. We can now do it for quantum and actually help CIOs, CTOs. Some of these discussions start, actually, with the CEO. And they want to know, am I vulnerable? If I'm vulnerable, where? So we can provide that map on day 1 for them, help them understand where the worst vulnerabilities are and protect those now. Whether they choose to use PQC or QKD or another flavor, we intend to be the one-stop shop for all of those. The point is we can check them on day 1 and then continuously monitor them over periods of time to say, are you still safe? Are you still safe? At some point, when we are even closer to Q-Day and almost everyone has deployed, I can see a world where there will be compliance requirements saying, have you secured your network against quantum attacks, not just classical attacks. So who rolls that out, which regulatory agency, et cetera, yet to be seen. But we are now preparing our customers for here's where your network is vulnerable, software layer, hardware layer, and we can help you today. And then as we've invested in computing, of course, we're going to invest in security as well. So watch the space. I think it's our next growth vector. Operator: Our next question comes from Tyler Anderson with Craig-Hallum. Tyler Perry Anderson: This is Tyler Anderson on for Richard. So with the Tennessee Quantum Communications Research Center, is the memory that is going to be installed there used for QKD or entanglement distribution? And then any color on what you guys are doing with SNL with either -- I don't know if it's your linear trap or your QCCD or any one of your other products. I'd love to hear more detail about that. And noting that they did build the Roadrunner, which is a long history between you guys. Inder Singh: Absolutely. So quantum memory is one of the things that, as a company, we're able to bring to the table today, but also we're investing in, to your point. So yes, we've announced that we're opening an R&D center actually close to our customer EPB in Chattanooga because there's a lot of quantum initiatives, innovation happening there. Vanderbilt University is opening a quantum campus there as well. So lots of R&D happening, lots of deployments happening, and that's where we've chosen to invest for our quantum memory development. That will be over many years. It will be generations of products in quantum memory, either used for caching or other purposes. Either used by us or frankly, part of our merchant supplier strategy as well. Those quantum memory modules may be sold to other players that are building quantum computers and need them as well. So it will serve a lot of different areas. We could have put this anywhere. We decided to put it in Chattanooga because of the ecosystem and quantum that is already developing there. Will we open another one? Who knows. I think at this point, that is where we see the tip of the spear happening around quantum memory. And we're one of the unique, sort of, players in the industry, maybe if not the only one that can actually allow for caching of, like, photons, for photonics as well. So I think it's another important milestone for us. And we took it very seriously, Niccolo and I and the entire management team, in ensuring that we're putting wood behind the arrow and delivering quantum memory, which is an integral part of networking. Niccolo de Masi: But you're correct, though. The EPB now has a computer, they have a network. They now have memory. So they're a nice example of a customer that has always been forward thinking. Built the world's fastest, I think, fiber optic network, a decade or more ago. And they continue to be at the forefront. And of course, we're showing that, that fiber that was the fastest in the nation, can now be both quantum-secure, quantum-entangled, quantum-ready and, of course, have a quantum computer on site. EPB is doing really important work with us on energy grid optimization. And obviously, Tennessee and that portion of Tennessee geographically near Oak Ridge, has a wonderful talent pool, and it has some wonderful research going on. And of course, the national labs, as well as in Chattanooga. So we're proud to be a partner of theirs. We're proud to be doing cutting-edge quantum computing and algorithm research with them that has implications not only for the state, but also federally. And of course, Senator Blackburn has been a big supporter of the National Quantum Bill, as well as, of course, of what we're doing in the state. So for sure, we'll keep you updated on this thread as well. Tyler Perry Anderson: And then for SNL, any other work that you're doing there? Niccolo de Masi: I mean we -- look, we kind of covered this on the first question, which is, it is obviously at an MOU stage. And there is a lot of connectivity between Sandia and ourselves because of the fact that Dr. Rick Muller used to run the quantum program there before he was a Director of IARPA and then joined IonQ 18 months or so ago. So it has been, in a lot of ways, one of the most active, if not kind of the home of a lot of U.S. national lab work over not just years, but double-digit years in the quantum space. I think this is a really exciting validation and endorsement of the fact that, as Inder and I have said throughout this Q&A, we are making quantum real. We're making quantum affordable. We're making it robust. We're making it deployable. And this is a team that understands what I mean when I say we are running the Manhattan Project of our era. New Mexico obviously has had an outsized role in that always. And the Manhattan Project era, as I said in my prepared remarks, matter not just for us, but our children, our grandchildren and I believe the entire 21st century. We're really setting up this nation, both from a SkyWater foundry perspective as well as from IonQ's direct road map to prevail from a national security perspective and from a national economic growth perspective, right? So this partnership -- the last thing I'll say on this partnership, is that there's obviously key aspects of scientific research in the energy sector as well, which we believe we can have short- to medium-term impact with. And Sandia is bringing domain expertise that we don't have. We're bringing quantum power expertise and commercially rugged systems, which they can benefit from as well. Operator: Our next question comes from Nehal Chokshi with Northland Capital Markets. Nehal Chokshi: Congrats on another stellar quarter financially. Inder, your implicit guidance for 2H is $135 million to $145 million. Can you give us some thoughts on how we should think about distributing that through Q3 and Q4? And I think pretty much any way we decide to distribute it, that probably implicitly says that there's going to be a decline in revenue Q-over-Q, albeit incredibly impressive level, but help us understand that as well. Inder Singh: Yes. We don't plan for a revenue decline. We plan for revenue growth, Nehal. I mean thank you for your question. I mean I think there are 2 things happening that we want to just be respectful of. One is the close of SkyWater means that next quarter, we'll be guiding for the combined company and the quarter after that as well. Maybe we'll give you color at Analyst Day perhaps, but certainly at the close of quarter. And the eliminations I was talking about happened over those same 2 quarters. So we decided not to actually try to finesse it for you and say, here's what Q3 looks like, here's what therefore Q4, by default, looks like. We'd rather give those combined company numbers, if you could bear with us. Realize they're a company that has more revenue than we do today, right? So we want to make sure that we do that in the right way. We wanted to give you the IonQ side of it so that you understood the momentum continues. Absolutely. I mean, we have a track record over 5 years of setting the bar and meeting or easily jumping over that bar, and we intend to continue doing that. This was mainly to acknowledge the fact that the deal was approved simply days before this earnings call and allow us the time to look at that $120 million of spend I was talking about, and how that distributes also when we give you combined company performance. Do not read into it that we're thinking of declining quarters. Nehal Chokshi: Okay. All right. And then just real quickly, the 256-qubit chip from SkyWater, that does not include integration of technology from Lightsynq, right? It's just the Oxford Ionics microwave excitation sources? Niccolo de Masi: Yes. So this is Niccolo. I'll tackle some of that. So the EPB research center has Lightsynq technology in the quantum memory, right? They're mostly a quantum memory and networking IP base in our Boston office, which is growing nicely. And that quantum memory is important, right, not only for extending secure communications with QKD across huge distances, but it allows you to build any size quantum data center that you would like on the ground, frankly, or in space, right? And we have a space position with our quantum sensing and signals business, right? So we are thinking about our quantum platform and what we can deploy in each domain. And we are -- and you're seeing the benefits of not just our ability to cross-sell solutions to customers, but you're also seeing us create solutions you couldn't create any other way. But yes, you're correct that SkyWater is building systems with ever more qubits on the chip. That is even before we start networking, right? So we believe we can get to millions of physical qubits on a single chip. We're currently going to -- we're working and showing milestones on the 256, which is at a full prototype QPU stage. The 10K chip is also beginning to get taped out. We'll then move up to bigger qubit numbers in the next generation and the generation after that. We've been a commercial partner with SkyWater. Things have been going faster, as you've seen from prior quarterly earnings reports in terms of technical milestones with that partnership. They've been a great partner commercially. They're obviously going to be, we believe, a great partner as our wholly owned subsidiary. One thing I do want to point out, just to pick up on the general theme of qubits and ions on a chip, is SkyWater took the majority of their consideration in this transaction in IonQ stock. It was mostly a stock swap transaction. And they had great advice, a great Board, experienced Board, did a lot of reverse diligence on us. And obviously, part of their Board's deliberation was around getting comfortable that, as I'd like to put it, 1 plus 1 equals 30. And you're seeing some of that 1 plus 1 equals 30 happen at 256, but I think you're going to see more acceleration the further out we look on the road map because we can, of course, collaborate increasingly effectively now on a go-forward basis. Niccolo de Masi: Thank you, operator. Our mission is to solve the world's hardest problems and to create tremendous national security, societal and commercial value. Delivering on that mission takes more than a computer. It takes an entire quantum value chain and ecosystem. With SkyWater now closed, IonQ is the only vertically integrated full-stack quantum platform and the largest merchant supplier to the U.S. and allied quantum ecosystem. We are already leveraging SkyWater to accelerate and derisk our fault-tolerant quantum computers via our published walking cat architecture. I want to thank our colleagues for their extraordinary efforts and our shareholders for their continued trust. We look forward to welcoming you at our Investor Day on September 8 at the New York Stock Exchange. We will be sharing exciting updates on our progress across the entire IonQ quantum platform. Thank you for joining us today and for your questions. Have a great day. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. 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While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy. IonQ (IONQ) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

The quantum computing industry made further progress toward commercialization in the second quarter of 2026, with enterprise adoption, government support and capital availability strengthening across the space. McKinsey's April 2026 Quantum Technology Monitor points to accelerating commercialization, with more than 300 organizations worldwide engaging with quantum computing and early movers transitioning from pilots to applications embedded in end-to-end workflows. The report also found that one-third of the large global companies it analyzed allocated more than $10 million to quantum computing initiatives in 2025, with spending focused largely on use-case development, integration with existing technology stacks and internal capabilities. The quarter also saw significant developments in commercial infrastructure and funding. IonQ’s IONQ 60% of second-quarter revenues came from commercial customers. IonQ also made progress on its 256-qubit system, quantum error correction, quantum networking and the integration of SkyWater Technology and Nexus Photonics into its full-stack strategy. D-Wave's QBTS 62.4% of second-quarter revenues came from commercial customers, up from 45.1% a year earlier. More significantly, first-half bookings reached $35.5 million, up 1,120% year over year, including a $20 million system sale, while remaining performance obligations rose 668% to $40.7 million. Against this backdrop, two stocks stand out in August for their more than 75% short-term price-target upside following their second-quarter releases. These are  Quantum Computing Inc. QUBT or QCi and Quantinuum QNT. Image Source: Zacks Investment Research The markets reflected this improving commercial narrative during April-June. The Defiance Quantum ETF QTUM rallied 51.3% over the April to June period, banking on the consolidated gains that came as investors increasingly focused on bookings, system sales, enterprise partnerships and technology milestones rather than quantum computing's longer-term potential alone. The June IPO of Quantinuum added another important development to the public-market landscape, with the company raising $1.68 billion and becoming one of the largest publicly traded pure-play quantum companies. However, the strong second-quarter rally quickly gave way to a broad reset in July, as shown in the following chart. The decline followed substantial gains in the preceding quarter and reflected high valuation sensitivity of speculative technology stocks. Image Source: Zacks Investment Research The major pure plays have now reported second-quarter results, giving investors more evidence on revenue growth, customer adoption, liquidity and technology execution. D-Wave's second-quarter revenues missed expectations despite a sharp increase in bookings, while Rigetti reported strong revenue growth. IonQ also reported substantial revenue growth. The results showed a key shift in the sector. Investors are increasingly looking for evidence of commercial conversion rather than relying solely on technology milestones. QCi: Quantum Computing enters the second half of 2026 with several potential growth drivers. In the near term, the Dirac-3 deployment, NeuraWave’s commercial readiness and its Planck Dynamics agreement could expand customer adoption, with the latter carrying potential program value above $10 million subject to milestones. The $42.5 million backlog and $1.3 billion cash position provide funding for continued execution. For the longer term, the NHanced acquisition and the launch of Fab 2 expand QCi’s advanced packaging and semiconductor manufacturing capabilities, supporting its strategy to scale photonic and quantum technologies. The key catalysts will be converting these deployments into recurring revenues while integrating its acquisitions and controlling rising operating costs. Based on short-term price targets offered by six analysts, the average price target for QCi represents an increase of 104.8% from the last closing price of $8.95. QCi carries a Zacks Rank #3 (Hold). Image Source: Zacks Investment Research Quantinuum: The company entered the second half of 2026 with accelerating commercial activity. Second-quarter 2026 revenues jumped 279% year over year, while the company issued 2026 revenue guidance of $28-$32 million. In the near term, the Oracle partnership to deploy Helios through Oracle Cloud Infrastructure could broaden enterprise access, while its HPE collaboration targets integration of quantum computing with HPC environments. Quantinuum also demonstrated near-five-nines logical fidelity on Helios, advancing its error-correction efforts. For the longer term, its planned Sol system in 2027 and Apollo roadmap are aimed at scaling quantum capabilities. With more than $2 billion in liquidity following its IPO, Quantinuum has substantial resources to fund this roadmap, although profitability remains a longer-term objective. Based on short-term price targets offered by 12 analysts, the average price target for QNT represents an increase of 76.2% from the last closing price of $56.1. Quantinuum carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Image Source: Zacks Investment Research 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 Quantum Computing Inc. (QUBT) : Free Stock Analysis Report Quantinuum Inc. (QNT) : Free Stock Analysis Report Defiance Quantum ETF (QTUM): ETF Research Reports IonQ, Inc. (IONQ) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Quantum Computing Inc.? Here are five stocks we like better. Q2 revenue rose to $5.6 million from $61,000 a year earlier, driven by photonics products, while the net loss narrowed to $11.8 million. The company held approximately $1.3 billion in cash and investments and had a $42.5 million backlog extending into at least the third quarter of 2027. Quantum Computing completed three acquisitions, including NHanced Semiconductors, to expand advanced packaging and manufacturing capacity. NHanced can process roughly 60,000 wafers annually, though potential facility upgrades could require up to $100 million in capital spending. The company advanced commercialization through NeuraWave’s commercial launch, a Dirac-3 installation at a global consulting firm, and a Planck Dynamics agreement involving an initial order for five systems with potential program value above $10 million. 2 Quantum Stocks That Could Challenge IonQ’s Leadership Quantum Computing (NASDAQ:QUBT) reported second-quarter 2026 revenue of $5.6 million, up from $61,000 a year earlier and $3.7 million in the first quarter, as photonics product sales contributed across its government, educational and commercial customer base. Chief Financial Officer Chris Roberts said the quarter’s revenue primarily came from photonics products used in the company’s quantum roadmap as well as existing industrial applications. He said government business, largely performed as a subcontractor to prime contractors in civil, aerospace and defense programs, currently represents about 70% to 80% of the company’s business. Commercial markets rank second, while educational customers represent a smaller portion, he said. → MarketBeat Week in Review – 08/03 - 08/07 2 Quantum Stocks Are Drawing Capital as AI Infrastructure Hits a Wall The company reported a net loss of $11.8 million, or $0.05 per share, compared with a net loss of $36.5 million, or $0.26 per basic share, in the second quarter of 2025. Roberts attributed much of the year-over-year improvement to a lower non-cash mark-to-market loss associated with warrant derivative liabilities related to the company’s 2022 merger with QPhoton. Operating expenses rose 114% to $21.8 million from $10.2 million a year earlier. The increase reflected higher personnel and payroll costs for research and development, sales and marketing, as well as approximately $7.3 million in acquisition-related transaction costs. → Quantum Earnings Week: Winners and Losers Are Finally Emerging A Quantum Shift: Why Speculative Money Is Ditching AI Interest and other income totaled $13 million, up from $1.8 million in the prior-year period, driven by interest generated from a larger cash position. At June 30, the company held approximately $1.3 billion in cash, cash equivalents and investments, down from about $1.5 billion at the end of 2025. Roberts said the decrease included roughly $180 million of cash used for the acquisitions of Luminar Semiconductor, NuCrypt and NHanced Semiconductors, including transaction expenses. Total assets were approximately $1.6 billion, while total liabilities were $47.2 million. Contract backlog stood at approximately $42.5 million at June 30. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Roberts said backlog had not changed substantially in the roughly 40 days after quarter-end, though contract activity can occur unevenly. He said the contracts in backlog generally extend over 12 to 18 months and would support operations into the third quarter of 2027 or longer if no additional business were received. Chief Executive Officer and Chairman Yuping Huang said the company completed three acquisitions during the first half of 2026 to expand its commercialization efforts, technical capabilities, manufacturing capacity and engineering staff. In the second quarter, Quantum Computing completed its acquisition of NHanced Semiconductors, an independent U.S.-based advanced packaging foundry. Huang said the deal enabled the company to launch its Fab 2 initiative ahead of schedule and added capabilities in hybrid bonding, chiplet architectures, silicon interposers, photonic device integration and advanced semiconductor packaging. Roberts said NHanced can currently process roughly 60,000 wafers annually, representing a substantial capacity increase over the company’s Fab 1 facility in Tempe, Arizona. The company is evaluating upgrades at the NHanced facility that could require capital expenditures in a range of $50 million to $100 million, with Roberts identifying approximately $75 million as a current planning estimate. He said the company does not expect to spend close to that amount this year. Regarding revenue contribution, Roberts said Quantum Computing continues to support models projecting $20 million to $25 million of 2026 revenue for the company prior to the NHanced acquisition. He said NHanced’s contribution could fall between $7 million and $16 million, depending on the timing of project delivery and customer acceptance. He noted that NHanced generated about $16 million in the first half of 2025, but its more recent figures have been affected by business mix changes and the postponement of funding on a large U.S. Navy contract. Huang said the company reached commercial readiness in April for NeuraWave, its photonic reservoir computing platform designed for artificial intelligence inference and signal processing at the edge. The platform combines photonic and digital computing and targets applications in defense, telecommunications, autonomous vehicles, robotics, healthcare and industrial monitoring. During June, the company delivered and installed a Dirac-3 quantum optimization machine at a global consulting firm. Huang said the system will support the customer’s enterprise engagements involving complex optimization challenges, including portfolio optimization. The company also reached a framework agreement with Planck Dynamics that included an initial order for five NeuraWave systems. Huang said the agreement could provide a path to deployment of multiple dozens of systems as customer milestones are met, with a potential aggregate program value exceeding $10 million. Quantum Computing additionally received an order from a university for its quantum secure communications system, which the institution plans to evaluate as part of research and development related to quantum-secure networking. Management said it remains focused on two growth areas: advancing room-temperature photonic quantum systems and expanding commercial offerings in photonic components, lasers, detectors, photonic integrated circuits, thin-film lithium niobate technologies, optical packaging, advanced packaging and semiconductor foundry services. Huang said the company has made progress in expanding the number of variables supported by its Dirac-3 optimization system, though he did not provide specific technical details. He said the company expects to share further news in coming months. Huang also said the company is developing technology for a gate-based quantum machine using single photons, while emphasizing that it does not yet have a gate-based product. He described photon-photon interaction, component integration and the need to combine lasers, single-photon detectors and control electronics into a self-contained chip-scale system as key engineering considerations. Roberts said Quantum Computing recently hired Susan Hunt as chief revenue officer and plans to add sales personnel in commercial and government markets. Huang said the company believes its technology and manufacturing capabilities have reached an inflection point that supports broader commercial expansion. Quantum Computing Inc (NASDAQ: QUBT) is a provider of quantum computing and quantum-inspired algorithm solutions, headquartered in the United States with research and development operations in Europe. Originally incorporated as Unigrid Software in 2019, the company rebranded in 2021 to reflect its strategic focus on commercializing emerging quantum technologies for enterprise and government customers. The company's flagship product, Qatalyst, is a quantum-inspired optimization platform that applies advanced heuristic solvers to address complex combinatorial problems in logistics, supply chain management, finance and other data-intensive fields. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Quantum Computing Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Rigetti Computing RGTI is drawing renewed investor attention following its second-quarter 2026 results, as strong revenue growth, technology progress and expanding customer engagement strengthen the long-term quantum computing story. Revenues surged 185% year over year to $5.1 million, driven by on-premises Novera QPU sales. Management highlighted progress on the 108-qubit Cepheus-1 system, growing commercial traction and strategic collaborations with HPE and the Pittsburgh Supercomputing Center. The potential funding up to $100 million from the U.S. Department of Commerce also adds another layer to Rigetti's growth prospects, although the funding agreement has yet to be finalized. Yet, the investment case is far from straightforward. Rigetti continues to operate at a significant loss, with operating expenses rising to $30.3 million in the second quarter, while commercialization remains at an early stage and quarterly revenue can fluctuate with large system deliveries. At the same time, peers IonQ IONQ, D-Wave Quantum QBTS and Quantum Computing Inc. QUBT are also competing for investor attention as the quantum computing race intensifies. With Rigetti targeting major technology milestones, including higher fidelity and a path toward roughly 1,000 qubits, the key question for investors is whether second-quarter execution has strengthened the stock's case for a Buy or whether its ambitious roadmap and ongoing losses call for a more cautious Hold stance. In the year-to-date period, Rigetti shares have lost 20.4%, reflecting continued volatility across the quantum computing sector. Among its peers, IonQ has performed relatively better, losing 5.3%, while QUBT and QBTS have plunged 13% and 22.8%, respectively. The broader Zacks Internet Software industry has slipped just 3.1% over the same period, outperforming all four quantum computing stocks. Rigetti has been the second-worst performer in the group, ahead of only QBTS, highlighting continued investor caution toward the sector despite growing interest in quantum computing and Rigetti's technology progress. Image Source: Zacks Investment Research Strong Q2 Revenue Growth Signals Improving Commercial Traction: Rigetti delivered a strong top-line performance in the second quarter. Revenues surged 185% year over year to $5.1 million, primarily driven by on-premises Novera QPU sales. Management also noted that commercial interest in quantum computing is increasing, with the company’s first two 9-qubit systems delivered this year going to commercial organizations. This marks an encouraging shift beyond Rigetti’s traditional research and government customer base. Rigetti is also expanding access to its systems through cloud and on-premises deployments. Its 108-qubit Cepheus-1 system is available through Rigetti Quantum Cloud Services, Amazon Braket, Microsoft Azure Quantum and qBraid. The company expects to recognize revenues from its $8.4 million C-DAC order for a 108-qubit system in the fourth quarter. These developments could help broaden its customer base as enterprises move from quantum research toward practical experimentation. Technology Progress Strengthens Rigetti’s Quantum Roadmap: Rigetti continues to make progress on the technology front. Its 36-qubit system achieved a 99.6% median two-qubit gate fidelity in the second quarter, up from 99.5% in the first quarter. Management attributed much of the improvement to design optimization and said these learnings are being incorporated into the 108-qubit platform and future systems. The company also expects further fidelity improvements at the 108-qubit level before year-end. Rigetti is targeting a much larger leap over the next few years. Management remains focused on reaching roughly 1,000 qubits, 99.9% two-qubit gate fidelity and sub-40-nanosecond gate speeds in about three years. Efforts to improve coherence time could be important to achieving these goals, with the company targeting a two- to three-fold improvement from the current 25-to-30 microsecond range. Strategic Partnerships and Government Support Add to Growth Potential: Rigetti's strategic relationships are becoming another important part of its growth story. The company expanded its collaboration with HPE and the Pittsburgh Supercomputing Center to deploy a 9-qubit Novera system in an HPE-powered supercomputing environment. The project aims to demonstrate hybrid quantum-classical workloads on real hardware. Management expects the system to be delivered in 2027. Government support could provide another meaningful catalyst. The U.S. Department of Commerce has selected Rigetti for a potential award of up to $100 million over three years to accelerate superconducting quantum computing R&D. The funding could help address scaling bottlenecks and accelerate development at Fab-1. While the agreement is yet to be finalized, the potential funding and growing government interest in quantum computing strengthen the strategic backdrop for Rigetti. Revenue Growth Remains Dependent on Large System Deliveries: Rigetti's strong second-quarter revenue growth is encouraging, but the underlying revenue profile remains uneven. Management acknowledged that revenues remain influenced by the timing of system deliveries and government-funded projects. Commercial adoption is also still at an early stage. Management said that customers are largely using Rigetti's systems for research, algorithm development and experimentation rather than practical workloads. While commercial interest is increasing, meaningful adoption remains tied to improvements in quantum performance. This could keep revenue growth volatile in the near term. Heavy R&D Spending Continues to Weigh on Profitability: Rigetti continues to invest heavily to advance its quantum roadmap. Operating expenses rose to $30.3 million in the second quarter from $20.4 million a year ago. Higher spending on engineering, chip design, fabrication, control electronics and refrigeration contributed to an operating loss of $28.1 million. The company also remains far from profitability. Its adjusted net loss widened to approximately $16 million, or 5 cents per share, from $13.3 million a year ago. Rigetti expects elevated capital expenditures in 2026 as it invests in Fab-1 and dilution refrigeration capacity. These investments are important for its long-term roadmap but could keep cash burn elevated. Rigetti stock is not so cheap, as suggested by the Value Score of F. Rigetti is currently trading at a price-to-book (P/B) ratio of 10.05X, which is higher than the industry average of 4.98X. Image Source: Zacks Investment Research In 2026, Rigetti is expected to experience a 257.3% improvement in revenues. On the profitability front, the company is expected to remain in loss but estimates reflect loss per share narrowing by 71.9% year over year. Image Source: Zacks Investment Research Rigetti's second-quarter execution provides several reasons for optimism. Revenue growth was strong, commercial interest is increasing, and the company continues to advance its 108-qubit platform. Its HPE collaboration, potential $100 million Department of Commerce funding and roadmap toward roughly 1,000 qubits add to the long-term opportunity. Rigetti also ended the second quarter with $541.3 million in cash, cash equivalents and investments and no debt, providing financial flexibility to fund its technology initiatives. However, the investment case remains balanced. Commercial adoption is still in its early stages, while heavy R&D spending continues to drive substantial losses. Revenues also remain dependent on the timing of large system deliveries and government-funded projects. The potential Department of Commerce funding is encouraging, but the agreement has yet to be finalized and could involve equity issuance. With a Zacks Rank #3 (Hold), investors may want to maintain a cautious stance on RGTI. The company's second-quarter progress supports its long-term potential, but stronger evidence of commercial adoption and continued technology improvements are needed before taking a more bullish view. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report Quantum Computing Inc. (QUBT) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research