NEW YORK, July 27, 2026, 12:01 EDT — U.S. regular session
Rigetti’s stock gained 7.3% to close at $15.18 following news of its new hybrid quantum-computing testbed.
Pittsburgh Supercomputing Center and Hewlett Packard Enterprise Co. NYSE:HPE are set to assist in developing the system.
D-Wave Quantum Inc. NASDAQ:QBTS outperformed rivals following news it broadened its collaboration with AT&T Inc. NYSE:T.
Rigetti stock rose 7.3% to $15.18 during late morning trading in New York. By 11:46 a.m. EDT, trading volume had reached 17.4 million shares.
The surge came after announcements about a hybrid quantum-classical platform named TangleLab. Rigetti is set to provide a nine-qubit Novera quantum machine.
The device will interface with a traditional high-performance computer located in Pittsburgh. The broader testbed receives financial support from a $5 million grant by the National Science Foundation.
The statement did not disclose Rigetti’s contract value. No anticipated revenue timeline was mentioned either.
The resulting change in valuation stands out. The move lifted Rigetti’s market capitalization by about $346 million. That figure is nearly 69 times larger than the total grant awarded, and represents approximately 79 times the company’s revenue in the first quarter.
The grant comparison does not represent a revenue projection. The action indicates that investors are seeking external confirmation and potential subsequent orders.
At approximately 11:46 a.m. EDT, Quantum shares traded mostly up:
D-Wave posted the largest increase in market data, with its rise exceeding Rigetti’s gain by more than double.
D-Wave provided a more detailed operating outcome in its announcement. A preliminary AT&T network task was reduced from roughly one hour to less than 15 seconds. AT&T intends to evaluate the technology for routing, outages and network planning.
Rigetti’s initiative provides an alternative example. The company’s hardware is integrated within an HPE-supported computing setting, though financial terms have not been revealed.
Building work is planned to commence on September 1. TangleLab is projected to become fully operational in 2027.
Rigetti CEO Subodh Kulkarni described fast gate speeds as “a critical metric for high-performance hybrid quantum computing environments.” Masoud Mohseni, director of quantum at HPE, said value relies on connecting quantum processors with HPC, artificial intelligence and networking. GlobeNewswire
Rigetti reported first-quarter revenue of $4.4 million, a 199% increase year-on-year. Sales of quantum computers and components accounted for roughly $3.05 million. The company said higher revenue was primarily driven by Novera system sales.
Expenses are still significantly high. Rigetti reported an operating loss of $25.95 million for the quarter, representing a 20% increase from the same period last year.
Revenue continues to be heavily concentrated, with three clients accounting for 81% of sales in the first quarter, the company’s filing showed.
Rigetti is set to announce its second-quarter earnings following the close of trading on August 6. Investors will be watching for indications that interest in its systems is expanding past a handful of major customers.
Risks: TangleLab has not revealed the value of its Rigetti contract, and operations are projected to begin in 2027. The company’s operating loss is still multiple times its quarterly revenue. Reliance on a small number of customers introduces additional volatility.
RGTI shares were up 7.3% at $15.18 at about 11:46 a.m. Eastern. Volume reached 17.4 million as shares moved between $14.55 and $16.12. The stock climbed after Rigetti announced a TangleLab partnership with HPE and the Pittsburgh Supercomputing Center. Rigetti is providing a nine-qubit Novera system for a hybrid testbed. The initiative secures a $5 million grant from the NSF. Rigetti did not reveal the contract value. Construction is set to start September 1, with full operations targeted for 2027.
What is the next key driver for RGTI stock?
The company’s next catalyst is set for just after the upcoming week. Rigetti is scheduled to report its second-quarter earnings following the August 6 market close. The earnings call is slated to start at 5:00 p.m. Eastern Time. Rigetti & Co, LLC Investors will review revenue compared to the $4.4 million posted in the first quarter. They are also focused on operating cash burn and when C-DAC delivery occurs. Fidelity advancements with Cepheus-1-108Q continue to be an important variable.
Did revenue growth in the first quarter lead to improved profitability?
Revenue climbed to $4.4 million, up 199% from $1.47 million the previous year. Gross profit totaled $1.38 million, resulting in a gross margin of 31.3%. Operating loss expanded by 20% to $25.95 million, driven by higher research expenses. SEC GAAP net income stood at $33.1 million; however, this was distorted by a $53.7 million noncash gain from warrant-liability remeasurement. On a non-GAAP basis, net loss was $14.7 million. The underlying business continues to be unprofitable.
Is Rigetti’s cash position sufficient, or could more dilution occur?
As of March 31, cash and investments amounted to $569.0 million. Operating cash burn for the quarter reached $16.2 million. Management reported that current funds should be sufficient for at least the next 12 months. SEC Meanwhile, Rigetti has committed a minimum of $250 million over five years as part of its Quanta partnership. The weighted-average number of basic shares climbed 16.6% year-on-year to about 332.1 million. Warrants, options, and restricted stock units present additional potential dilution.
What is the price of Rigetti stock in relation to its present sales?
Rigetti’s market value stood near $5.09 billion at a share price of $15.18. Based on reported quarterly results, revenue over the trailing twelve months was about $10.0 million, putting its market-cap-to-sales ratio at nearly 508. SEC After accounting for $569 million in cash and investments, the cash-adjusted market value is roughly $4.52 billion—still about 452 times trailing revenue. This valuation reflects expectations for significant technical advances and far greater future sales.
To what extent do existing orders offer clarity on near-term revenue?
The $8.4 million C-DAC contract envisions installation in India in the second half of 2026. Novera previously placed orders valued at around $5.7 million for two units. Rigetti & Co, LLC Quantum computer and component revenues totaled $3.05 million in the first quarter. Performance obligations not yet recognized in revenue were $2.8 million as of March 31. A single customer accounted for 54% of first-quarter sales. SEC TangleLab announced a major partnership, but Rigetti did not specify revenue from the deal. This leaves revenue timing highly concentrated, variable and challenging to predict.
Did the 108-qubit system achieve the performance goals set by management?
The target has not yet been achieved. Cepheus-1-108Q currently shows a median two-qubit gate fidelity of 99.1%. The system’s two-qubit gates execute operations in about 60 nanoseconds, enabling rapid hybrid workloads. SEC Management’s goal is to reach a median two-qubit fidelity of 99.5% later in 2026. A nine-qubit device demonstrated 99.8% fidelity, with prototype models attaining 99.9%. Higher numbers do not reflect uniform results across all 108 qubits. All reported fidelity figures are based on Rigetti’s internal measurements.
What is the likelihood that the U.S. government will issue the proposed $100 million award?
Rigetti has executed a letter of intent instead of a finalized funding contract. The planned award totals up to $100 million over three years dedicated to quantum research. Commerce would obtain Rigetti stock with an economic value in line with the funding provided. SEC The pricing mechanism involves a 15% discount from the lowest closing value specified. Definitive agreements still require negotiation between the parties. The proposal represents a possible trigger, not recognized revenue or assured funds.
What is the potential upside implied by the analyst's new target today?
Benchmark has reportedly started coverage of the stock with a Buy rating and a $25 price target. Investing.com Canada Based on the most recent $15.18 quote, this target suggests a potential upside of around 65%. The initiation may have supported sentiment, coming alongside the HPE announcement. However, one analyst’s target does not impact revenue or operating cash flow at present. Rigetti continues to trade close to 508 times trailing revenue. Execution on August 6 remains the key factor.
Shan Ahmed Khan is a senior markets reporter at TS2.tech. His coverage ranges from stocks and technology to economic developments across global markets. He worked in investment research and market analysis before becoming a financial journalist and is a graduate of the Lahore University of Management Sciences (LUMS).
