Rigetti Computing (RGTI +0.27%) stock went on a massive run in May, surging over 46%.
Shares got a boost from a marketwide rally that saw the Nasdaq Composite gain more than 8%, but better-than-expected Q1 earnings and a major announcement from the federal government both sent the stock higher.
NASDAQ: RGTI
Key Data Points
Federal quantum funding gives Rigetti a major boost
On May 21, the U.S. Department of Commerce signed letters of intent to award $2 billion in federal grants to nine quantum computing companies under the CHIPS and Science Act. Aimed at accelerating the development of "utility-scale, fault-tolerant quantum computing," the program was seen as a major endorsement from the federal government.
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Rigetti will receive up to $100 million over three years, per a letter of intent. That's a pretty big sum for a company that generated just $4.4 million in revenue last quarter, and it helps provide a financial runway.
Shares jumped nearly 57% on the day of the announcement and the day following.
The CHIPS Act announcement was a big moment for the whole quantum industry. Rigetti was far from the only pure play stock to see a huge spike on the news.
Q1 earnings beat expectations as revenue nearly triples
Earlier in the month, Rigetti released its Q1 2026 earnings. Revenue came in at $4.4 million, a nearly 200% year-over-year increase and well above analyst targets. The growth was driven by deliveries of the company's Novera quantum processing units, as well as netting some government contracts.
The company is still burning cash, however, with a free cash flow (FCF) of -$20.6M.
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $4.4M | $1.5M |
| EBITDA | ($23.3) | ($19.8) |
| Cash | 418.3M | 209.1M |
Cepheus finally launches
The company also hit an important technical milestone. Rigetti's 108-qubit Cepheus system was finally released. The company says it achieved "two-qubit gate fidelity" of roughly 99.1%, with targets of 99.5% fidelity and 150-plus qubits by year-end.
The Cepheus system had been delayed, so its successful launch was a critical win.
IBM's $10 billion quantum commitment helps boost shares
Right at the end of the month, IBM added fuel to the rally by announcing plans to invest more than $10 billion in quantum computing. Over the next five years, the company plans to invest that money in R&D, manufacturing, and "ecosystem partnerships".
