Shares of Rigetti Computing (NASDAQ: RGTI) have fallen 68% over the past twelve months, dramatically underperforming the S&P 500’s 17.0% return over the same period.
Despite that sharp decline, the quantum computing hardware maker still carries a market valuation of approximately $4.7 billion, even as it posted losses of roughly $0.2 billion over its last twelve months.
The stock currently trades at 350.1 times its trailing twelve-month sales, compared with a multiple of just 3.1 times for the broader S&P 500 index.
At the S&P 500’s 3.1 times sales multiple, a $4.7 billion valuation would require approximately $1.5 billion in annual revenue, a figure vastly distant from where Rigetti stands today.
Rigetti’s primary commercial product is Novera, a quantum computing system delivered and installed directly at a customer’s own facility, rather than accessed through the cloud.
That strategy is beginning to show up in financial results, with the company recording revenue of approximately $5.1 million in the second quarter of 2026, up sharply from $1.8 million in the same quarter a year earlier.
Management noted during an August 6, 2026 earnings call that Novera sales drove the increase, as older purchase orders converted into recognized revenue during the period.
Commercial organizations purchasing systems for their own sites accounted for most of the sales growth in the first half of the year, with national laboratories and universities also contributing increased demand.
One contract that stands out is a deal with C-DAC for a 108-qubit system destined for India, priced at $8.4 million, a single order worth more than Rigetti’s entire second-quarter revenue figure.
Management expects to recognize that C-DAC contract as revenue in the fourth quarter of 2026, though revenue recognition only occurs after installation and customer acceptance testing are completed.
The company’s proprietary 108-qubit system currently achieves a median two-qubit gate fidelity of roughly 99.1%, with management targeting an improvement to approximately 99.5% later in 2026.
Rigetti’s cash position is also under pressure, with cash and investments declining to approximately $541.3 million at the end of the second quarter, down from $569 million three months earlier.
Management has acknowledged that revenue will continue to fluctuate based on the timing of system deliveries, meaning any single strong quarter offers limited visibility into future performance.
Shares remain 74.9% below their 52-week high, and the path to justifying the current valuation hinges on Rigetti successfully scaling system deployments well beyond what its order book currently reflects.
