The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Verdict |
|---|---|---|---|---|---|
Valuation | 43 | — | 20.1x | Near average | |
Growth | 14 | -41.7% | 5.6% | Below average | |
Quality | 29 | -159.4% | 7.6% | Below average | |
Safety | 42 | 4.3x | 0.4x | Near average | |
Capital Return | 39 | — | 2.19% | Near average | |
Momentum | — | — | — | No data | |
Sentiment | — | — | — | No data |
This section combines price targets, revision history, analyst coverage changes, and an AI summary of what changed on the Street.
QBTS stock has experienced a gradual decline in the average price target by 4.17% over the past 30 days, as the consensus dropped from 36 to 34.5 dollars despite the number of analysts remaining steady at 6. This downward adjustment in expectations, coupled with a wide gap between the high (45 dollars) and low (22 dollars) estimates, indicates increased uncertainty regarding the pace of future revenue growth and the reduction of operating losses.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
D-Wave Quantum Inc. (NYSE: QBTS) is one of the global leaders in quantum computing and the only company offering a dual platform that combines quantum annealing technology and the gate model following its acquisition of Quantum Circuits in January 2026. The company generates its revenue primarily from providing Quantum Computing as a Service (QCaaS) via its Leap cloud platform, providing consulting and professional services, and selling complete physical systems to commercial and academic enterprise customers.
During the first quarter of fiscal year 2026, the company recorded total revenue of $2.9 million, representing an 81% decrease compared to first-quarter 2025 revenue of $15 million. This decline was primarily due to the lack of recognized revenue from physical system sales in the current quarter, compared to the prior-year period which featured a system sale transaction worth $12.6 million. However, subscription revenues from Quantum Computing as a Service (QCaaS) increased by 15% year-over-year to reach $1.8 million, while professional services revenue grew by 26% to reach $1 million. Commercial customers accounted for more than 73% of total first-quarter revenue.
On the profitability front, D-Wave achieved a GAAP gross profit of $1.8 million and a gross margin of 63.6%, compared to a gross profit of $13.9 million and a margin of 92.5% in the first quarter of the prior year. The company recorded a net loss of $18.4 million (or -$0.05 per share), compared to a net loss of $5.4 million (-$0.02 per share) in the first quarter of 2025, driven by higher operating expenses of $56.5 million to support accelerated investments in research and development, marketing, and absorbing recent acquisition costs.
Automated analysis for informational purposes only — not investment advice.
The stock currently trades at $30.11, which is below the average analyst target of $36 (19.6%), with a consensus buy recommendation.
First-quarter 2026 revenue fell to $2.9 million compared to $15 million in the same quarter of 2025. This 81% decline is primarily due to the absence of large physical system sale transactions in the current quarter, whereas the first quarter of last year saw the recognition of revenue from a single quantum annealing system sale worth $12.6 million. However, cloud subscription revenues (QCaaS) recorded steady year-over-year growth of 15% to reach $1.8 million.
D-Wave signed a landmark agreement to sell a quantum computing system to Florida Atlantic University (FAU) for a total value of $20 million in January 2026. This transaction was fully included in the historic first-quarter bookings of $33.4 million and was also incorporated into the Remaining Performance Obligations (RPO). Revenue recognition for this transaction will begin gradually over the coming quarters based on delivery, installation, and technical calibration milestones of the system.
Dual-rail technology comes through the acquisition of Quantum Circuits in January 2026, enabling the integration of superconducting speed with the efficiency and accuracy of ion trapping. This technology is characterized by its ability to identify approximately 90% of errors as they occur while recording an extremely low error rate of just 0.5%. This design allows for a reduction in the number of physical qubits required to create a single error-corrected logical qubit by an entire order of magnitude, accelerating the company's path toward building commercially useful quantum systems.
D-Wave's management raised its guidance for physical system sales to be between 2 to 3 deals annually, with high confidence in delivering at least two physical systems during 2026. On the revenue front, the company expects second-quarter 2026 revenue to be modestly higher compared to the first quarter, with the largest and most significant portion of total annual revenue expected to be recognized during the second half of fiscal 2026 in line with system installation progress.
In collaboration with Postquant Labs, D-Wave launched a pilot network for a joint quantum-classical blockchain featuring over 1,600 nodes, where the company's Advantage2 quantum system currently excels in mining the majority of blocks with high energy efficiency. In artificial intelligence, the company is collaborating with Japanese pharmaceutical firm Shionogi to apply quantum annealing in training large language models for drug discovery, resulting in a 10-fold increase in identifying desired molecules compared to classical methods, and the partnership is currently preparing to transition to the actual commercial application phase.