After some silence, Rigetti Computing (RGTI) recently announced the release of its newest quantum computing system. As is clear from the stock chart, the news briefly pushed up investor sentiment, but it's already too late — RGTI stock has been experiencing a prolonged downtrend for almost a year now.
Nevertheless, the quantum computing market itself is getting more mature. Companies like Rigetti Computing should not only make great advances in terms of innovation — they should start making money on them. Currently, Rigetti is developing innovative solutions as the number of its customers starts growing, with increased interest among government organizations and research facilities. Accordingly, the company's latest advancements might be considered as a sign of change to come.
About Rigetti Computing Stock
Rigetti Computing provides quantum computing services that focus on superconducting processors and hybrid quantum/classic systems. With headquarters located in Berkeley, California, its approximate market capitalization is $4.75 billion. RGTI stock is considered to be a highly innovative quantum play as the company competes on the technological level.
Shares of RGTI trade around $15 currently, which is approximately 75% lower than the 52-week high of $58.15. On the other hand, RGTI stock has climbed 88% from its low of $7.81. In comparison with the performance of the S&P 500 Index ($SPX), the volatility of the stock is obvious, reflecting the speculative character of quantum investments.
From the standpoint of fundamental analysis, the price-to-sales (P/S) ratio is quite high at 680 times. That shows that the market expects strong growth potential for RGTI stock. However, given the fact that the price-to-book ratio is only 8.81 times, Rigetti stock seems overvalued.
Rigetti Computing Misses on Earnings
It is worth noting that, despite some positive technical developments, the company continues experiencing difficulties on the financial front. For the fourth quarter of 2025, Rigetti reported total revenue of only $1.9 million, along with GAAP net losses amounting to $18.2 million, or $0.06 per share. Using the non-GAAP measure, the firm recorded a net loss of $11.3 million, or $0.03 per share.
As for full-year 2025 performance, Rigetti reported revenue of only $7.1 million, compared to GAAP net losses of a hefty $216.2 million. Clearly, a huge mismatch exists between the company's revenues and its expenditures.
Still, when assessing Rigetti, investors should not dismiss the underlying developments that indicate a promising trend. Firstly, the company is expected to record certain portions of orders for Novera systems totaling $5.7 million during Q1, implying possible year-over-year (YOY) revenue growth from a quite modest base. Even more significant, however, is the fact that new contract wins are being secured.
For instance, Rigetti recently signed a deal totaling $8.4 million with the Centre for Development of Advanced Computing (C-DAC), an Indian government organization aimed at acquiring quantum computing systems. Such contracts are important, as they are not only sources of revenue but also prove product value and quality.
What Do Analysts Expect for Rigetti Computing Stock?
RGTI stock has a “Moderate Buy” consensus rating and an average price target of $32.10. The highest target is set at $40, while the lowest one is $20 per share. Compared to the stock's recent level near $15, the average price target for Rigetti implies potential upside of 119% from current levels.
Ultimately, Rigetti Computing remains in construction mode. For investors, that creates a classic high-risk/high-reward setup — one where patience and a strong stomach for volatility are essential.
On the date of publication, Yiannis Zourmpanos did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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