IonQ to Report Q2 Earnings: Buy, Sell or Hold This Quantum Stock Now?

IonQ. Inc. IONQ is slated to report results for the second quarter of 2025 on Aug. 6, after the closing bell.

IonQ, a pioneer in trapped-ion quantum computing and quantum networking, heads into its second-quarter 2025 earnings report riding high on a string of commercial and strategic achievements. Following a better-than-expected first-quarter 2025, where it posted a revenue of $7.57 million and a bottom line of a loss of 14 cents per share, both topping the Zacks Consensus Estimate, reinforcing its momentum in quantum computing and networking. The company’s revenues were slightly down 0.2% year over year but above the midpoint of its prior guidance. Its bottom line was marked improvement from the prior year’s 19-cent loss per share.

Markedly, IonQ reported better-than-expected earnings in two of the trailing four quarters and missed on the other two occasions, the average negative surprise being 52%.

How Are Estimates Placed for IonQ Stock?

The Zacks Consensus Estimate for the quarter’s EPS has remained unchanged at a loss of 13 cents per share over the past 30 days. The estimated figure indicates improvement from the year-ago loss of 18 cents per share.

The consensus mark for revenues is pegged at $17.02 million, indicating 49.6% year-over-year growth.

For 2025, IONQ is expected to register a 97.3% increase from a year ago in revenues. Its bottom line is expected to witness an improvement to a loss of 60 cents per share from $1.56 a year ago.

What to Expect in Q2 for IonQ: Scaling Revenue and Strategic Execution

IonQ heads into the second quarter of 2025 with significant momentum and a clear pathway to accelerated growth. Management has reaffirmed its full-year revenue guidance and set second-quarter revenue expectations in the range of $16 million to $18 million, more than double the $7.57 million posted in the first quarter. This strong sequential growth outlook reflects both organic progress and anticipated contributions from recent strategic moves.

A major catalyst for second-quarter revenue is the $22 million Forte Enterprise system sale to EPB of Chattanooga, which marks the company’s first commercial customer deployment combining both quantum computing and a live quantum network. This milestone not only underscores IonQ’s ability to monetize its hardware at scale but also introduces a new distributed data center strategy, allowing IonQ to serve customers from multiple quantum hubs, including Tennessee, College Park, and Seattle.

The second quarter is also expected to benefit from inorganic revenue streams. IonQ completed its acquisition of ID Quantique on April 30, just before the start of the second quarter, meaning the subsidiary’s performance will begin contributing to the top line. While the Lightsynq and Capella acquisitions, their absorption into IonQ's operations is expected to further enhance the company’s ability to deliver secure quantum communications and scalable interconnects. Both companies bring with them differentiated technologies in quantum memory and space-based quantum networking that align tightly with IonQ’s long-term roadmap.

From a technology standpoint, IonQ is prioritizing the delivery of AQ 64 as a key milestone in 2025. The engineering and performance development of the company’s Tempo system is ongoing and remains on schedule, with teams focused on improving fidelity and achieving targeted performance thresholds. These advancements are crucial as the company aims to transition from proof-of-concept demonstrations to commercially viable quantum compute capacity that can support large-scale enterprise and government applications.

Financially, IonQ is preparing for an increase in its cost base during the second quarter, primarily due to the integration of newly acquired businesses and continued investment in headcount and R&D. Management disclosed that it expects a 35% increase in its previously projected adjusted EBITDA loss for the year, highlighting its commitment to growth and long-term value creation over short-term profitability.

Overall, the second quarter of 2025 is shaping up to be a transformative period for IonQ. The combination of commercial contract execution, international expansion, and integration of next-generation quantum networking capabilities positions the company to significantly scale its operations.

What the Zacks Model Unveils for IONQ Stock

Our proven model does not conclusively predict an earnings beat for IonQ this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Earnings ESP: IonQ has an Earnings ESP of 0.00%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

IONQ Stock’s Price Performance & Valuation

IonQ shares have surged 28.9% over the past three months, compared with the 34.5% gain in the Zacks Computer-Integrated Systems industry. Yet, IONQ shares have outperformed the 20.5% rise in the broader Zacks Computer and Technology sector. Even the S&P 500’s robust 11.7% climb during the same period has lagged behind IonQ’s performance. This momentum reflects investor enthusiasm around IonQ’s strategic direction, particularly its leadership in quantum networking and government-backed projects.

IONQ 3-Month Share Price Performance

Yet with this rally comes a note of caution. The stock is currently trading at a lofty forward 12-month price-to-sales (P/S) ratio of 92.09, which is significantly higher than the industry average of 3.79. While IonQ operates in a highly specialized frontier market, the steep premium raises questions about whether the stock has already priced in too much of the company’s long-term potential.

IONQ’s P/S Ratio (Forward 12-Month) vs. Industry

IonQ’s Hurdles on Its Road to Commercial Scale

Despite IonQ’s strong technological foundation, the company remains in the early stages of commercial development. The broader quantum computing market is still years from mainstream enterprise adoption, and IonQ must prove it can evolve from research-focused collaborations to generating meaningful, recurring commercial revenue. Until that transition gains momentum, the company’s high cash burn and lofty valuation may test investor patience—especially if short-term execution falls below expectations.

Adding to the pressure is growing competition from major players like International Business Machines Corporation IBM, Microsoft Corporation MSFT, and Rigetti Computing, Inc. RGTI. IBM’s robust hardware roadmap and expansive quantum network make it a formidable challenger, while Microsoft’s Azure Quantum is advancing rapidly with cloud-based and hybrid quantum offerings. Both giants have the advantage of deep enterprise integration and global scale. Rigetti, though smaller, rivals IonQ in hardware innovation and remains an agile competitor. While IonQ’s bet on space-based quantum key distribution (QKD) offers a potential edge, IBM and Microsoft continue to dominate industry conversations, backed by unmatched resources and partner ecosystems.

Why IonQ Stock Is a Hold for Now?

IonQ is making solid progress with strong revenue growth, strategic acquisitions, and expanding quantum infrastructure. Its second-quarter outlook is promising, and long-term potential remains compelling. However, the company is still early in its commercial journey, facing high costs, execution risks, and stiff competition from giants like IBM and Microsoft. With a lofty valuation and no near-term profitability, IonQ’s current rank reflects a balanced view. Investors should hold the stock for now and wait for clearer signs of sustained commercial traction.

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This article originally published on Zacks Investment Research (zacks.com).

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