Rigetti Computing Reports Mixed Financial Results in RGTI Earnings

Rigetti Computing (RGTI) has released its financial results for the third quarter of the year, showing mixed outcomes. The company reported a loss of $0.03 per share, which is better than Wall Street’s expectation of a $0.04 loss. However, Rigetti’s revenue for the quarter reached $1.94 million, falling short of the predicted $2.17 million. This represents a decline from the $2.37 million revenue recorded during the same period last year.

Future Developments and Expectations

Looking ahead, Rigetti Computing plans to enhance its quantum computing capabilities significantly. The company aims to deploy a 150-plus qubit system by the conclusion of 2026 and achieve a 1,000-plus qubit system by the end of 2027. These innovations are expected to dramatically increase the company’s computing capacity.

Management Insights

Rigetti’s CEO, Dr. Subodh Kulkarni, highlighted the positive momentum during this quarter. According to him, there is a growing demand for their on-premises quantum computers, alongside developing collaborations to advance both their research and development and the broader quantum ecosystem. He noted that the company is on track to deliver a 100+ qubit chiplet-based quantum system, which is projected to achieve a 99.5% median two-qubit gate fidelity by the end of 2025.

Market Reactions

Following the announcement, Rigetti’s stock saw a slight decline of 2% in after-hours trading. Despite this dip, RGTI shares have surged by 117% since the beginning of the year.

Analyst Ratings

The consensus among seven Wall Street analysts suggests a Moderate Buy rating for Rigetti Computing. This is based on five Buy ratings and two Hold ratings issued over the last three months. The average price target for RGTI stands at $32, indicating a potential downside of 4.39% from current trading levels. Analysts are expected to reassess their ratings in light of the recent financial results.