Shares of Rigetti Computing (RGTI) fell in after-hours trading after the quantum computing firm reported earnings for its first quarter of Fiscal Year 2025. Earnings per share came in at $0.13, which beat analysts’ consensus estimate of -$0.05 per share. However, this included $62.1 million of non-cash gains from the change in fair value of derivative warrants and earn-out liabilities.
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In addition, sales decreased from $3.052 million in the prior year to $1.472 million. This also missed analysts’ expectations of $2.55 million. Given that the company is still in the early stages of developing its products, it did not provide guidance.
Business Updates
Rigetti Computing is making strong progress in quantum computing, with new government-funded projects in both the U.S. and the UK showing its leadership in superconducting quantum systems. CEO Dr. Subodh Kulkarni said that the company is developing ways to scale up its systems using a flexible, modular design.
In the U.S., Rigetti was chosen to join DARPA’s Quantum Benchmarking Initiative. In the first six-month phase, the company will work on building a utility-scale quantum computer (USQC) using its multi-chip design and advanced error correction codes. Longtime partner Riverlane will help refine the technology. Rigetti also won a $5.48 million project from the Air Force Office of Scientific Research to lead a team studying how its ABAA chip-making method affects qubit quality.
In the UK, Rigetti was awarded three Innovate UK grants as part of a £3.5 million project focused on quantum error correction. Working with Riverlane and the National Quantum Computing Centre (NQCC), the team will run complex tests on superconducting systems to improve error correction and demonstrate real-time capabilities. These efforts are key steps toward building reliable, fault-tolerant quantum computers.
Is RGTI Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on RGTI stock based on six Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average RGTI price target of $15.50 per share implies 34.9% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
