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Quantum Computing (NASDAQ:QUBT) jumped more than 30% on Friday after surprising everyone on Thursday with a Q1 GAAP EPS of $0.11beating estimates by $0.18even though total revenue was just $39,000 (up from $27,000 a year ago).
Yes, the 33% gross margin dipped from 41% in Q1 2024, but at this early stage in their growth, those swings are par for the course. That little win lit a fire under the whole quantum sector: IonQ (NYSE:IONQ), D-Wave (QBTS), Arqit (NASDAQ:ARQQ) and Rigetti (NASDAQ:RGTI) all chalked up gains.
IonQ itself earlier topped Q1 forecasts and stuck with a full-year revenue guide of $75$95 million, right around Wall Street's $85.4 million consensus. What's clear is that real revenue is still modest, but these beats hint that quantum hardware and software are inching toward genuine monetization.
Plus, the buzz around quantum's potential in fields from finance to drug discovery is attracting a fresh wave of speculative capital into these small-cap names. Bottom line: if EPS surprises and upbeat outlooks keep rolling inespecially from IonQ nextthis could kick off another leg higher for quantum stocks.
Investors will be listening closely to the next batch of earnings from IonQ, D-Wave and Rigetti to see if the growth story can really stick.
This article first appeared on GuruFocus.