QuantumScape Pre-Q3 Analysis: Buy, Hold or Sell QS Stock Now?

Solid-state battery innovator QuantumScape Corp. QS is slated to release third-quarter 2025 results on Oct. 22, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s loss per share is pegged at 18 cents. The loss estimate for the to-be-reported quarter has remained stable over the past 90 days and implies an improvement from the year-ago period’s loss of 23 cents per share.

For 2025, the Zacks Consensus Estimate for QS’ loss is pegged at 78 cents a share, suggesting an improvement of 17% year over year. In the trailing four quarters, QuantumScape surpassed bottom-line estimates once, matched twice and missed on the remaining occasion.

QuantumScape Corporation Price and EPS Surprise

QuantumScape Corporation price-eps-surprise | QuantumScape Corporation Quote

Q3 Earnings Whispers for QS                                                             

Our proprietary model does not conclusively predict an earnings beat for QuantumScape this earnings season. 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. That’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

QS has an Earnings ESP of 0.00% and a Zacks Rank #3.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors at Play

QuantumScape’s third-quarter results will likely be shaped by a mix of operational progress and partnership monetization. QuantumScape entered the third quarter of 2025 with renewed financial momentum following its expanded collaboration with Volkswagen’s VWAGY PowerCo, which will add up to $131 million in new cash payments over two years, in addition to the $130 million already tied to a licensing agreement. 

QuantumScape—which is currently pre-revenues—notified on its last earnings call that it expects to invoice PowerCo for over $10 million in the third quarter for development work already completed. While this may not be recognized as revenues, it represents the first meaningful non-dilutive cash inflow and could narrow quarterly losses.

In the second quarter of 2025, the company shipped its final Raptor-based B0 samples for pack integration and safety testing. The next stage is B1 samples, built using the more advanced Cobra process. Operationally, the transition to the Cobra separator process—a 25x productivity improvement over the prior Raptor line—positions QuantumScape for high B1 sample output. Achieving this ramp efficiently will be crucial, as it affects technical milestones tied to Volkswagen payments and overall credibility with other OEM partners.

Ducati’s V21L motorcycle, unveiled at the IAA Mobility Show in Munich in September, was powered by QuantumScape’s QSE-5 cells built with its proprietary Cobra process—marking the world’s first real-world showcase of anode-free solid-state lithium-metal batteries.

Price Performance & Broker Ratings

Shares of QS have jumped more than 240% year to date, breezing past the industry’s growth. The stock hit a fresh 52-week high of $19.07 yesterday, to eventually close the session at $17.85.

QuantumScape currently has an average brokerage recommendation (ABR) of 3.44 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. 

How to Play QS Ahead of Q3 Results

QuantumScape now has two major auto partners—Volkswagen and an undisclosed global OEM—formally engaged in its solid-state battery program. Further, collaborations with Murata Manufacturing and Corning Incorporated on ceramics are aiding the company to expand its ecosystem of partners and market opportunities. Its technological leap in manufacturability through the Cobra process and a financial runway extending well into the back half of the decade bode well.

Yes, QuantumScape’s rally this year reflects real progress on both business and technology fronts. However, with shares trading near a 52-week high currently, it may not be the ideal entry point for new investors. For existing holders, though, the company’s growth potential and industry validation support staying invested.

Investors should watch for updates on Cobra-based sample shipments, new OEM collaborations, and clarity on PowerCo-related cash inflows on the third-quarter earnings call before reassessing their positions.

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

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