Rigetti Computing (NASDAQ: RGTI) shares have fallen sharply over the past month, reflecting mounting investor anxiety over the pace of commercialization across the quantum computing sector.
RGTI stock declined 21% over the past month, compared with a 27.6% drop in D-Wave Quantum (QBTS) and a 19% decline in Quantum Computing Inc. (QUBT).
The broader software market and the S&P 500 posted gains of 3.5% and 0.9% respectively over the same period, underscoring the pronounced weakness concentrated in quantum computing names.
Rigetti’s second-quarter 2026 results illustrated the tension between growth ambitions and financial reality, with revenues surging on higher Novera quantum processing unit sales but operating losses widening considerably.
Operating expenses rose 48% year over year to $30.3 million in the second quarter, outpacing revenue growth and driving an operating loss of $28.1 million, compared with $19.9 million a year ago.
Despite the losses, Rigetti’s balance sheet remains a meaningful source of support, with the company holding $541.3 million in cash, cash equivalents and available-for-sale investments and carrying no debt at the end of the second quarter.
The cash position declined from $589.8 million at the end of 2025, but the available resources are expected to fund chip design, fabrication, and dilution refrigeration infrastructure development.
A significant boost to Rigetti’s investment case came through a definitive agreement with the U.S. Department of Commerce for a $100 million award to accelerate research and development in superconducting quantum computing under the CHIPS Act.
The funding will target three technical bottlenecks, including miniaturizing readout electronics, expanding cryogenic capacity through a new cryostat architecture, and developing fabrication capabilities for high-connectivity chip architectures.
As part of the agreement, the Department of Commerce will receive a minority, non-controlling equity stake in Rigetti, providing a return for U.S. taxpayers while supporting the company’s long-term roadmap.
Rigetti’s modular, chiplet-based architecture offers another potential growth driver, with its Cepheus-1-108Q system built from 12 interconnected nine-qubit chiplets demonstrating the ability to integrate processors into systems exceeding 100 qubits.
Management is targeting approximately 1,000 qubits, two-qubit gate fidelity of 99.9%, and gate speeds below 40 nanoseconds over roughly three years, though achieving those milestones will require continued technical execution.
An expanded collaboration with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center is expected to integrate a nine-qubit Novera system into a high-performance computing environment for hybrid quantum-classical workloads.
Rigetti is also pursuing on-premises deployments, including a 108-qubit system for India’s C-DAC, which could broaden its customer base across research institutions and government programs.
On the revenue outlook, Rigetti is expected to deliver a 257.1% improvement in revenues in 2026, while the loss per share is forecast to narrow by 70.3% year over year, though the company is expected to remain unprofitable.
Valuation remains a concern, with RGTI trading at a Price/Book ratio of 7.84, compared with 5.40 for the broader Internet Software market, despite a decline from the 12-month median P/B ratio of 9.59.
Most customers continue to use Rigetti’s systems for research and experimentation rather than commercially viable workloads, keeping meaningful revenue generation tied to large system deliveries and government-funded contracts.
Quarterly revenue performance remains difficult to predict given its dependence on the timing of system deliveries and government project milestones, a structural challenge that continues to weigh on investor confidence.
With a Zacks Rank of Hold, RGTI presents a long-term opportunity for patient investors, but progress in system performance, commercial adoption, and revenue consistency will be critical factors to watch in the quarters ahead.
