ZACKS·2025-10-29 20:01Core Insights - IonQ and Rigetti Computing are key players in the quantum computing sector, with upcoming Q3 2025 earnings releases expected to provide insights into their market positions and financial health [1][3] - IonQ has shown strong commercial traction, new government contracts, and expanded partnerships, while Rigetti has made progress in system deliveries and product development but faces challenges with revenue recognition and operating losses [2][3] IonQ Overview - IonQ is well-positioned with strong cash reserves, strategic partnerships, and a solid technology roadmap, which is expected to bolster investor confidence ahead of its Q3 earnings release on November 5, 2025 [6] - In the last reported quarter, IonQ's revenues exceeded the Zacks Consensus Estimate by 21.6%, with a $1 billion equity raise increasing pro-forma cash to $1.6 billion [7][10] - The company has expanded its global presence through partnerships, which are anticipated to positively impact Q3 revenues [8] - IonQ aims for large-scale fault-tolerant systems, targeting 800 logical qubits by 2027 and 80,000 by 2030, although the Q3 impact of this ambition is expected to be minimal [9] - IonQ projects Q3 revenues between $25 million and $29 million, reflecting a 117.9% year-over-year increase, while full-year revenues are expected to range from $82 million to $100 million [10][11] Rigetti Overview - Rigetti's recent updates include new system deliveries and progress on its QCS and Novera platforms, but it has faced significant revenue declines and operating losses [2][3] - In the last reported quarter, Rigetti's revenues fell by 41.6% year-over-year, missing the Zacks Consensus Estimate by 5.7% [12] - The company successfully launched the Cepheus-1-36Q multi-chip system, achieving a median two-qubit gate fidelity of 99.5%, which is expected to enhance future performance [13] - Rigetti's gross margin decreased to 31% from 64% year-over-year, attributed to revenue mix and pricing variability in development contracts [14] - Rigetti anticipates Q3 revenues of $2.39 million, indicating a slight 0.4% year-over-year growth [17] Comparative Analysis - IonQ appears to have a stronger market visibility and balance sheet compared to Rigetti, which has potential for upside if its technology execution leads to faster commercialization [3][19] - Both companies currently hold a Zacks Rank 3 (Hold), indicating a balanced risk-reward profile, but IonQ is viewed as the stronger investment option due to its liquidity and growth prospects [19]