Rigetti Stock Slips After Q3 Earnings Miss

Shares of Rigetti Computing Inc. (NASDAQ:RGTI) are in focus Wednesday after the quantum computing company reported third-quarter results that missed analyst expectations for both revenue and adjusted earnings per share.

While revenue declined year-over-year, Rigetti highlighted progress in quantum processor performance, a substantial cash position and its longer-term plans to scale quantum systems.

• Rigetti Computing stock is among today’s weakest performers. Why are RGTI shares down?

Rigetti Reports Weak Q3 Results

Rigetti reported third-quarter revenue of $1.41 million, down 28% from $1.95 million in the year-ago period and below the analyst consensus estimate of $3.52 million. The company reported an adjusted loss of 6 cents per share, wider than the expected loss of 5 cents and the 3-cent loss reported a year earlier.

Rigetti also reported an operating loss of $33.2 million, compared with $20.5 million in the same quarter last year. Higher operating expenses, which reached $34 million, primarily reflected increased investment in research and development.

Despite the quarterly revenue decline, Rigetti’s revenue for the first nine months of 2026 increased 110% year-over-year to $10.9 million, supported by system sales and government programs. Gross margin also improved significantly to 61% in the third quarter, compared with 21% a year earlier.

Rigetti ended the quarter with $497.1 million in cash, cash equivalents and available-for-sale investments, with no debt. The company expects fiscal 2026 revenue of approximately $20 million, assuming customer acceptance and revenue recognition for its C-DAC contract in the fourth quarter.

Rigetti Advances Quantum Computing Roadmap

Beyond its quarterly financial performance, Rigetti highlighted progress in improving the performance and reliability of its superconducting quantum computers.

The company achieved 99.5% median two-qubit gate fidelity on its CPS-1 108-qubit system, an important performance milestone as it works to improve the accuracy of quantum operations. Rigetti also emphasized its chiplet-based architecture as a strategy for scaling larger quantum systems.

The company has secured a $100 million funding agreement with the U.S. Department of Commerce to accelerate research and development in superconducting quantum computing. Its roadmap includes developing a 300-qubit system by mid-2028, targeting 99.7% fidelity and gate speeds below 60 nanoseconds, before eventually scaling toward a 1,000-qubit system.

Management also identified error correction and the development of quantum algorithms as important priorities for advancing practical quantum computing applications.

Rigetti Expects Elevated Capital Spending Through 2027

During the earnings call, CFO Jeffrey Bertelsen was asked about the sequential increase in capital expenditures and what investors should expect in the fourth quarter and 2027.

Bertelsen attributed the higher spending plans to investments in larger-capacity dilution refrigerators and equipment for the company’s Fab-1 facility. He explained that these investments support Rigetti’s broader plan to scale its quantum computing systems and eventually reach the 1,000-qubit milestone.

Although Bertelsen did not provide a specific fourth-quarter capital expenditure figure, he indicated that spending could remain elevated next year.

“As we march into 2027, I suspect you’ll see CapEx in 2027 relatively consistent with what you’ve seen here in 2026,” he said.

The investments are intended to support Rigetti’s intermediate 2028 system-development milestone and its longer-term 1,000-qubit ambition.

Wall Street Adjusts RGTI Price Targets

Analysts made changes to their Rigetti price targets following the company’s quarterly results.

Needham analyst N. Quinn Bolton maintained a Buy rating but lowered his price target from $31 to $15. StoneX analyst Gary Mobley also maintained a Buy rating while reducing his target from $25 to $20. Meanwhile, Rosenblatt Securities analyst John McPeake reaffirmed a Buy rating with a $40 price target.

RGTI Shares Trade Lower

RGTI Price Action: Rigetti shares were down about 4.28% at $11.64 at the time of publication on Wednesday, according to Benzinga Pro.

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