Rigetti Computing (NASDAQ:RGTI) reported first quarter results that came in above analyst expectations, as the company continued to scale its superconducting quantum systems and advance its chiplet-based architecture.
Revenue for the quarter ended March 31 totaled $4.4 million, up 198.9% year-over-year and above consensus estimates of $4.09 million.
Adjusted loss per share was $0.04, compared with expectations for a $0.05 loss.
Jefferies analysts described the quarter as “solid,” pointing to improving system sales cadence and early validation of Rigetti’s 108-qubit system as key developments. They said the launch of the 108-qubit (108Q) system supports the company’s chiplet-based roadmap and noted that commercial traction is beginning to build, though still early and uneven.
“We see the real unlock is proving fidelity can scale,” Jefferies wrote, identifying system performance as a key metric to monitor. The firm maintained a Hold rating and $20 price target, citing the need for continued execution on the company’s roadmap.
Rigetti reported an operating loss of $26 million for the quarter. On a GAAP basis, net income was $33.1 million, while non-GAAP net loss was $14.7 million. Cash, cash equivalents, and investments totaled $569 million at quarter-end.
Jefferies attributed the revenue beat largely to Novera quantum processing unit (QPU) deliveries and government and research contracts, estimating Novera-related system deliveries at $3 million during the quarter. The firm noted that collaborative research and professional services revenue came in below expectations, while access to quantum computing revenue was slightly higher than anticipated.
Gross margin came in at 31.3%, below estimates, which Jefferies said reflected contract mix effects, including lower-margin third-party refrigeration components. Operating margin remained deeply negative, though slightly better than expected on an adjusted basis, despite higher-than-forecast operating expenses.
On technology developments, Rigetti highlighted continued progress in superconducting qubit performance, including median two-qubit gate fidelity of 99.8% on a 9-qubit system and prototype performance reaching up to 99.9%.
Jefferies noted that the current 108Q system operates at a reported 99.1% median two-qubit gate fidelity, with a company target of 99.5% later this year and a longer-term goal of 99.9%.
The analysts said the 108Q system, now available through cloud channels, represents a validation of Rigetti’s chiplet-based architecture and provides access to one of the larger gate-based superconducting systems currently available. However, they emphasized that broader enterprise adoption remains a future opportunity as system performance continues to improve.
Rigetti also reported ongoing progress in chiplet architecture optimization, system-level control enhancements, and error mitigation research in collaboration with partners including Riverlane. The company said these efforts are aimed at improving scalability, stability, and circuit performance as it advances toward fault-tolerant quantum computing.
Jefferies said near-term commercial traction is being driven primarily by research institutions and universities, with additional contract revenue expected in upcoming quarters, including recognition of remaining Novera revenue and a scheduled $8.4 million 108Q system deployment in the fourth quarter of 2026.
Despite the strong report, shares of Rigetti fell about 9% on Tuesday morning as investors locked in gains following a pre-earnings rally, while continued elevated operating losses and broader concerns about the slow pace of commercialization in the quantum computing sector weighed on sentiment.