Rigetti Computing (NASDAQ:RGTI) Posts Quarterly Earnings Results, Misses Expectations By $0.01 EPS

Rigetti Computing (NASDAQ:RGTI) announced its quarterly earnings data on Tuesday. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.01), FiscalAI reports. The company had revenue of $1.41 million for the quarter, compared to analysts’ expectations of $3.50 million. Rigetti Computing had a negative net margin of 737.60% and a negative return on equity of 19.25%. The firm’s quarterly revenue was down 27.5% on a year-over-year basis. During the same period in the prior year, the firm earned ($0.03) earnings per share.

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

• Cepheus-1-108Q reached 99.5% median two-qubit gate fidelity, with a 50-qubit sublattice at 99.7%. Rigetti set a mid-2028 target for a 300-plus-qubit system at approximately 99.7% fidelity, while acknowledging that further fidelity gains and real-time error correction remain challenges.
• Rigetti signed an agreement for up to $100 million in Department of Commerce funding for roadmap-related research and development. The funding is drawn as eligible costs are incurred; the department received about 7.7 million shares for a minority, non-controlling stake.
• Third-quarter revenue fell to about $1.4 million from $1.9 million a year earlier, while operating expenses rose to $34 million and operating loss widened to $33.2 million. The company used $49.1 million in operating cash and $42.6 million for capital expenditures in the first nine months.
• Revenue for the first nine months rose about 110% year over year to $10.9 million, exceeding full-year 2025 revenue. Management expects approximately $20 million for 2026, but that outlook depends on fourth-quarter acceptance of the C-DAC system and recognition of the related revenue.

Rigetti Computing Stock Down 4.4%

Shares of NASDAQ RGTI traded down $0.49 on Thursday, hitting $10.62. The company had a trading volume of 4,786,041 shares, compared to its average volume of 27,972,824. Rigetti Computing has a 12-month low of $9.19 and a 12-month high of $30.20. The firm has a market capitalization of $3.54 billion, a P/E ratio of -29.43 and a beta of 2.15. The business has a 50 day moving average of $13.76 and a two-hundred day moving average of $16.72.

Rigetti Computing News Summary

Investors following RGTI have been watching these news items:

• Positive Sentiment: Rigetti reported 99.5% median two-qubit gate fidelity on its 108-qubit system and has a definitive agreement for up to $100 million in CHIPS Act funding. These are meaningful technology and funding milestones, although commercialization remains a longer-term goal. Article: Rigetti Computing reaches 99.5% fidelity and secures $100 million CHIPS funding
• Neutral Sentiment: StoneX maintained a Buy rating but lowered its price target to $20 from $25. The positive rating signals continued analyst optimism, while the reduced target reflects a more cautious outlook. StoneX recommendations
• Negative Sentiment: Management expects elevated capital spending to continue through 2027, while the CEO said quantum companies have not yet demonstrated a return on investment versus classical computing. The company has indicated commercialization is still roughly three years away, extending the wait for meaningful revenue growth. Article: Rigetti stock sinks after CFO signals another year of heavy spending

Insider Buying and Selling

In other Rigetti Computing news, COO David Rivas sold 9,038 shares of the company’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $16.79, for a total value of $151,748.02. Following the completion of the transaction, the chief operating officer owned 316,907 shares in the company, valued at $5,320,868.53. This represents a 2.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jeffrey A. Bertelsen sold 25,000 shares of the company’s stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $15.00, for a total value of $375,000.00. Following the completion of the transaction, the chief financial officer owned 168,067 shares of the company’s stock, valued at approximately $2,521,005. This represents a 12.95% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 163,689 shares of company stock valued at $2,570,890. Corporate insiders own 1.60% of the company’s stock.

Wall Street Analyst Weigh In

RGTI has been the topic of a number of research analyst reports. Needham & Company LLC reduced their target price on Rigetti Computing from $31.00 to $15.00 and set a “buy” rating on the stock in a report on Wednesday. B. Riley Financial dropped their target price on shares of Rigetti Computing from $25.00 to $23.00 and set a “buy” rating for the company in a research report on Monday. Mizuho set a $17.00 target price on shares of Rigetti Computing in a research report on Wednesday. Wall Street Zen lowered shares of Rigetti Computing from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. Finally, Benchmark started coverage on shares of Rigetti Computing in a research report on Monday, July 27th. They set a “buy” rating and a $25.00 price target on the stock. Seven analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $23.56.

About Rigetti Computing

Rigetti Computing develops superconducting quantum computers and related software. Its work spans the design and manufacture of quantum processors, as well as systems that connect quantum processors with conventional computing infrastructure. The company offers access to its quantum computers and development tools through its Quantum Cloud Services platform. It also provides quantum hardware for on-premises use, serving customers and research organizations exploring quantum applications. Founded in 2013 by physicist Chad Rigetti, the company is based in Berkeley, California.