TLDR
- QUBT stock surged over 26% in premarket Tuesday after Q1 revenue hit $3.7M, crushing the $3.1M consensus
- Revenue jumped from just $39,000 in Q1 2025, a near-complete turnaround in 12 months
- Rosenblatt Securities reiterated a Buy rating with a $22 price target; Wedbush held a $12 target
- The company’s Arizona foundry is now generating revenue, not just R&D costs
- Acquisitions of Luminar Semiconductor and NuCrypt add laser, detector, and quantum security capabilities
Quantum Computing (QUBT) delivered a Q1 earnings beat that sent the stock flying on Tuesday. The company posted revenue of $3.7 million, well above Wall Street’s $3.1 million estimate. Adjusted EPS came in at -2 cents, also better than expected.
The year-over-year revenue jump is hard to ignore. In Q1 2025, the company posted just $39,000 in revenue. That makes the $3.7 million figure a near-miraculous turnaround — though the operating loss did widen to $20 million.
QUBT stock was up 26.33% in premarket trading on Tuesday, after already gaining 6.04% the day before. The stock is now trading at a year-to-date high of around $13, though it’s still down 0.78% on the year overall.
Trading volume picked up fast. Around 16.6 million QUBT shares changed hands, compared to a three-month daily average of about 11.59 million.
Analyst Reactions
The earnings triggered a fresh round of analyst commentary. Rosenblatt Securities’ John McPeake reiterated his Buy rating and kept his $22 price target, implying over 116% upside from current levels.
Wedbush’s Antoine Legault (four stars) held his Hold rating with a $12 target, pointing to roughly 18% potential upside.
The broader Wall Street consensus sits at Moderate Buy, based on four Buy and two Hold ratings over the past three months. The average price target across those analysts is $17.83, representing about 75% upside.
CEO Dr. Yuping Huang pointed to photonics as the key growth driver. He said the technology’s low power consumption and ability to run at room temperature make it well-suited for next-generation data processing.
The Arizona Foundry Factor
One of the cleaner stories out of this earnings release is the Arizona foundry. The facility, which manufactures the company’s Thin-Film Lithium Niobate (TFLN) chips, had previously been under fire from short-sellers who questioned its viability.
Management confirmed the foundry is now contributing to revenue. That’s a meaningful shift from its earlier identity as a pure R&D lab.
The company also signaled plans to open a second facility, suggesting demand for TFLN chips is running ahead of current supply.
Unlike many competitors that rely on third-party foundries, Quantum Computing controls its own production from hardware to software. That vertical integration lowers supply chain risk and tightens the development cycle.
The two recent acquisitions — Luminar Semiconductor and NuCrypt — add laser and detector technology along with quantum security expertise. Those capabilities help reduce the cost of building room-temperature quantum systems by bringing key components in-house.
Quantum Computing management confirmed that QCi Foundry is contributing to the top line for the first time, marking a concrete step from development-stage company toward commercial operation.
🚨 Our MAY Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for May, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
