Rigetti Computing (NASDAQ:RGTI) Issues Earnings Results, Hits Expectations

Key Points

• Rigetti met earnings expectations with a quarterly loss of $0.05 per share and revenue of $5.14 million, slightly above estimates. Revenue increased 185% year over year, driven by Novera quantum-processing-unit sales, while gross margin improved to about 43%.
• The company cited commercial and strategic progress, including an expected $8.4 million C-DAC order, improving two-qubit fidelity, and a potential Department of Commerce funding package of up to $100 million. Rigetti also expects to deliver a 9-qubit Novera system to an HPE/Pittsburgh Supercomputing Center testbed in 2027.
• Losses and spending remain significant: operating expenses rose to $30.3 million and the non-GAAP net loss widened to about $16 million, while cash and investments fell to $541.3 million. Shares rose 8.5% after the results, and analysts maintained a “Moderate Buy” consensus with an average target of $30.67.

Rigetti Computing (NASDAQ:RGTI - Get Free Report) released its quarterly earnings data on Thursday. The company reported ($0.05) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.05), FiscalAI reports. Rigetti Computing had a negative net margin of 2,189.54% and a negative return on equity of 17.82%. The firm had revenue of $5.14 million for the quarter, compared to the consensus estimate of $5.09 million.

Here are the key takeaways from Rigetti Computing's conference call:

• Revenue rose to $5.1 million from $1.8 million year over year, driven by Novera QPU sales, while gross margin improved to approximately 43% from 31%.
• Rigetti remains on track to recognize the $8.4 million C-DAC 108-qubit system order in the fourth quarter and plans to deliver a full 9-qubit Novera system to the HPE/Pittsburgh Supercomputing Center hybrid-computing testbed in 2027.
• A Department of Commerce letter of intent could provide up to $100 million over three years to accelerate chiplet-based superconducting quantum computing development, although the funding is not yet definitive and would involve equity issuance.
• Rigetti reported median two-qubit fidelity of roughly 99.1% on its 108-qubit Cepheus system and expects further improvement before year-end; however, management acknowledged that customers are still primarily conducting research rather than commercially valuable quantum-advantage workloads.
• Operating expenses increased to $30.3 million and the non-GAAP net loss widened to approximately $16 million, while cash and investments declined to $541.3 million from $589.8 million at year-end as the company invests heavily in R&D, fabrication, and refrigeration infrastructure.

Rigetti Computing Trading Up 8.5%

RGTI stock traded up $1.41 during mid-day trading on Friday, reaching $17.94. The company's stock had a trading volume of 29,936,801 shares, compared to its average volume of 21,786,144. The company's 50 day moving average is $18.28 and its two-hundred day moving average is $18.06. Rigetti Computing has a fifty-two week low of $12.53 and a fifty-two week high of $58.15. The stock has a market cap of $5.96 billion, a PE ratio of -19.93 and a beta of 1.99.

Analysts Set New Price Targets

RGTI has been the subject of several research analyst reports. Mizuho reduced their target price on Rigetti Computing from $33.00 to $27.00 and set an "outperform" rating for the company in a research note on Tuesday, May 12th. Benchmark began coverage on Rigetti Computing in a research note on Monday, July 27th. They set a "buy" rating and a $25.00 price objective for the company. Rosenblatt Securities reissued a "buy" rating and set a $40.00 target price on shares of Rigetti Computing in a report on Friday. Northland Securities started coverage on Rigetti Computing in a research note on Monday, April 20th. They issued a "market perform" rating and a $20.00 price objective for the company. Finally, Jefferies Financial Group restated a "hold" rating and issued a $18.00 price objective on shares of Rigetti Computing in a report on Friday. Seven analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $30.67.

Insider Transactions at Rigetti Computing

In other Rigetti Computing news, CTO David Rivas sold 499,328 shares of the business's stock in a transaction on Friday, May 29th. The stock was sold at an average price of $25.40, for a total transaction of $12,682,931.20. Following the transaction, the chief technology officer owned 325,945 shares of the company's stock, valued at approximately $8,279,003. The trade was a 60.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CFO Jeffrey A. Bertelsen sold 3,682 shares of the business's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $22.95, for a total value of $84,501.90. Following the transaction, the chief financial officer directly owned 171,927 shares in the company, valued at $3,945,724.65. This trade represents a 2.10% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 728,901 shares of company stock worth $17,546,343 in the last ninety days. Insiders own 1.60% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of RGTI. State Street Corp raised its stake in Rigetti Computing by 12.0% during the second quarter. State Street Corp now owns 8,853,006 shares of the company's stock worth $104,997,000 after purchasing an additional 946,850 shares during the period. UBS Group AG grew its stake in shares of Rigetti Computing by 90.9% in the 3rd quarter. UBS Group AG now owns 3,081,174 shares of the company's stock valued at $91,788,000 after buying an additional 1,467,483 shares during the period. Northern Trust Corp increased its holdings in shares of Rigetti Computing by 16.3% during the 3rd quarter. Northern Trust Corp now owns 2,846,095 shares of the company's stock worth $84,785,000 after buying an additional 397,905 shares during the last quarter. Charles Schwab Investment Management Inc. raised its position in shares of Rigetti Computing by 3.1% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,795,388 shares of the company's stock valued at $61,918,000 after buying an additional 84,994 shares during the period. Finally, Victory Capital Management Inc. raised its position in shares of Rigetti Computing by 1,632.5% during the 4th quarter. Victory Capital Management Inc. now owns 2,571,289 shares of the company's stock valued at $56,954,000 after buying an additional 2,422,873 shares during the period. Institutional investors and hedge funds own 35.38% of the company's stock.

Key Stories Impacting Rigetti Computing

Here are the key news stories impacting Rigetti Computing this week:

• Positive Sentiment: Commercial momentum is improving. Second-quarter revenue rose 185.3% year over year to approximately $5.14 million, slightly exceeding consensus expectations. Wedbush said shipments of Rigetti’s Novera quantum systems are driving a more commercial revenue mix, while other coverage highlighted major quantum-computing orders. Rigetti Computing Q2 Shows Commercial Mix Inflection Rigetti Stock Rises as Major Quantum Orders Fuel Growth
• Positive Sentiment: Analyst support added to the bullish case. Rosenblatt Securities reaffirmed its “buy” rating and maintained a $40 price target, implying substantial upside from the stock’s recent level. Broader investor interest in quantum-computing stocks is also being supported by expectations for progress toward a potential “quantum advantage” milestone in 2026. Rosenblatt Rating Update Quantum Computing Stocks With Analyst Upside
• Positive Sentiment: Rigetti reported technology and strategic progress. The company cited improving quantum performance, continued development of its technology roadmap, partnerships including Hewlett Packard Enterprise, and potential U.S. government research support of up to $100 million. It ended June with approximately $541.3 million in cash and no debt, providing financial flexibility. Rigetti Computing Reports Second Quarter Results

About Rigetti Computing

Rigetti Computing is a pioneering quantum computing company that designs and manufactures superconducting quantum processors alongside a complementary software stack. Founded in 2013 by CEO Chad Rigetti, the company has developed end-to-end quantum systems—from cryogenic hardware to control electronics—to advance the performance and scalability of quantum machines.

At the core of Rigetti's offering is its Quantum Cloud Services (QCS) platform, which enables developers and enterprises to access quantum processing units (QPUs) and hybrid quantum-classical workflows via the cloud.

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 contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source