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

Rigetti Computing (NASDAQ:RGTI) issued its quarterly earnings results on Tuesday. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.01), FiscalAI reports. Rigetti Computing had a negative net margin of 2,189.54% and a negative return on equity of 17.50%. The firm had revenue of $1.41 million during the quarter, compared to analysts’ expectations of $3.51 million. During the same quarter last year, the company posted ($0.03) EPS. The firm’s revenue was down 27.5% compared to the same quarter last year.

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 Price Performance

RGTI traded down $0.61 on Wednesday, reaching $11.54. 12,189,116 shares of the company traded hands, compared to its average volume of 27,974,863. The company has a market cap of $3.85 billion, a price-to-earnings ratio of -12.89 and a beta of 2.15. The stock’s 50 day moving average price is $13.84 and its 200-day moving average price is $16.78. Rigetti Computing has a 52-week low of $9.19 and a 52-week high of $31.65.

Trending Headlines about Rigetti Computing

Investors following RGTI have been watching these headlines:

• Positive Sentiment: Rigetti reported 99.5% median two-qubit fidelity on its 108-qubit system, a technical milestone supporting its chiplet-based architecture. Rigetti Computing Reports Third Quarter 2026 Financial Results
• Negative Sentiment: Q3 revenue was $1.41 million, well below analyst expectations of roughly $3.5 million and down 27.5% year over year. The reported loss per share of $0.06 also missed the $0.05 consensus estimate, weighing on investor sentiment. Rigetti Reports Q3 Loss, Misses Revenue Estimates
• Negative Sentiment: Management expects elevated capital spending to persist through 2027, raising concerns about cash use as the company invests ahead of meaningful commercial revenue. The CEO also indicated commercialization may still be about three years away. Coverage of spending outlook and after-hours reaction

Insider Activity at Rigetti Computing

In other Rigetti Computing news, CEO Subodh Kulkarni sold 120,000 shares of Rigetti Computing stock in a transaction on Wednesday, September 9th. The shares were sold at an average price of $15.68, for a total transaction of $1,881,600.00. Following the completion of the sale, the chief executive officer owned 140,411 shares of the company’s stock, valued at $2,201,644.48. This trade represents a 46.08% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Jeffrey Bertelsen sold 25,000 shares of Rigetti Computing stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $15.00, for a total transaction of $375,000.00. Following the sale, the chief financial officer directly owned 168,067 shares of the company’s stock, valued at $2,521,005. This trade represents a 12.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 163,689 shares of company stock worth $2,570,890 in the last quarter. 1.60% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

RGTI has been the subject of a number of research analyst reports. Benchmark started coverage on Rigetti Computing in a report on Monday, July 27th. They issued a “buy” rating and a $25.00 target price for the company. Weiss Ratings upgraded Rigetti Computing from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday, October 21st. B. Riley Financial lowered their price target on Rigetti Computing from $25.00 to $23.00 and set a “buy” rating on the stock in a report on Monday. Needham & Company LLC dropped their price target on Rigetti Computing from $31.00 to $15.00 and set a “buy” rating on the stock in a research report on Wednesday. Finally, Zacks Research raised Rigetti Computing from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 6th. Six equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Rigetti Computing has an average rating of “Hold” and an average target price of $26.00.

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.