Rigetti Computing Reports Q4 Revenue Beat, EPS Misses

• Rigetti Computing, Inc. (NASDAQ:RGTI) has been highlighted as a leader in the quantum computing industry, with significant advancements positioning it for future success.
• A price target of $18 set by Brian Kinstlinger from Industrial Alliance Securities suggests an optimistic outlook for RGTI, with a potential increase of about 8.83%.
• The company's 36-qubit quantum computer system's breakthrough, achieving a "99.5% median two-qubit gate fidelity," marks a significant milestone in reducing error rates and enhancing commercial viability.

Rigetti Computing, Inc. (NASDAQ:RGTI) is a prominent player in the quantum computing industry. The company focuses on developing quantum-classical computing systems, which combine quantum and classical computing technologies. Rigetti's recent advancements in quantum computing have positioned it as a leader in the field, competing with other tech giants striving for breakthroughs in this cutting-edge technology.

On July 16, 2025, Brian Kinstlinger from Industrial Alliance Securities set a price target of $18 for RGTI. At that time, the stock was priced at $16.54, suggesting a potential increase of about 8.83%. This optimistic outlook aligns with Rigetti's recent achievements in quantum computing, which have significantly boosted investor confidence.

Rigetti's stock experienced a remarkable rally, surging by 30% following the announcement of a major breakthrough in quantum computing. The company revealed that its 36-qubit quantum computer system successfully reduced error rates by half. This advancement is crucial for making quantum computing commercially viable, as highlighted by the stock's impressive rise despite the S&P 500 and Nasdaq Composite remaining mostly flat.

The company's achievement of a "99.5% median two-qubit gate fidelity" on its modular 36-qubit system marks a significant milestone. This development effectively halves the error rate compared to previous records, addressing a critical barrier in quantum computing. Rigetti's proprietary modular chip technology, which uses superconducting qubits, offers gate speeds over a thousand times faster than other modalities like ion traps.

Currently, RGTI's stock is priced at $16.40, reflecting a significant increase of 28.93% with a change of $3.68. The stock has fluctuated between a low of $13.78 and a high of $16.73 today. With a market capitalization of approximately $4.8 billion and a trading volume of 167.4 million shares, Rigetti's recent advancements have clearly captured the market's attention.

Rigetti Computing, Inc. (NASDAQ:RGTI) reported its Q4 results on Monday, with EPS of ($0.19) coming in worse than the Street estimate of ($0.12), while revenue of $6.1 million beat the Street estimate of $4.4 million.

Deutsche Bank analysts provided their views following the results and the company’s first quarterly earnings call with a new CEO, CFO, and CTO, which provided more color on the company's new strategic roadmap.

While the analysts remain convinced that the incremental focus on technology execution and near-term productization is the right strategy, management was clear that revenue growth will be minimal over the next 1-2 years, or until the company successfully demonstrates narrow QA. As part of its revised outlook, the company also announced it will need to raise additional capital by the end of 2024 despite cost-cutting measures put in place at the beginning of the year.