IonQ Q3 Earnings Miss Estimates, Revenues Surge Y/Y, Stock Up

IonQ IONQ reported a net loss of $3.58 per share in the third quarter of 2025, significantly wider than the Zacks Consensus Estimate of a loss of 44 cents. The figure also came above the year-ago period’s loss of 24 cents.

Revenues in the third quarter came in at $39.87 million, representing 222% year-over-year growth and also 37% above the top end of the company’s previously provided range. The metric beat the Zacks Consensus Estimate by 47.57%.

Following the earnings announcement, IONQ shares jumped 5.5% in the after-market session yesterday.

IONQ’s Q3 Operational Highlights

In the third quarter, the company’s cost of revenues (excluding depreciation and amortization) totaled $21.3 million, up 226.2% year over year, mainly due to an increase in labor costs to service contracts and higher materials costs related to quantum networking products.

IonQ, Inc. Price, Consensus and EPS Surprise

IonQ, Inc. price-consensus-eps-surprise-chart | IonQ, Inc. Quote

Sales and marketing costs rose 117.8% to $14.4 million, driven by an increase in payroll-related expenses, higher promotional costs for products and services and other marketing initiatives.

Research and development costs rose 99.8% year over year to $66.3 million, while general and administrative costs surged 476.1% to $82.5 million.

Overall, IonQ posted an adjusted EBITDA loss of $48.9 million in the third quarter.

IONQ’s Financial Details

As of Sept. 30, IonQ had cash, cash equivalents and investments of $1.5 billion and $3.5 billion pro-forma for the $2 billion equity offering that closed on Oct. 14, 2025.

Cumulative net cash used in operating activities reached $208.7 million compared with $66.3 million in the year-ago period.

IONQ’s Financial Outlook

For full-year 2025, IonQ now expects revenues between $106 million and $110 million (previously $82-$100 million). The Zacks Consensus Estimate for the company’s revenues currently stands at $92.7 million. 

Meanwhile, the company reaffirmed its adjusted EBITDA loss midpoint guidance between ($206) million and ($216) million.

Our Take on IONQ Stock

IonQ exited the third quarter of 2025 with earnings missing and revenues surpassing estimates. The company witnessed its largest quarterly revenue beat to date, delivering results significantly exceeding the high end of its guidance. IonQ achieved a milestone algorithmic qubit score of #AQ 64 on an IonQ Tempo system, three months ahead of schedule, meeting its technical goal for the year. It also announced a huge breakthrough in synthetic diamond materials, speeding up the quantum networking scale and production.

In addition, IonQ completed the acquisition of Oxford Ionics and raised $1 billion at a 25% premium to the previous day's closing price. Meanwhile, the bottom line was much wider on a year-over-year basis.

IONQ’s Zacks Rank and Other Key Picks

IonQ currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader Computer and Technology sector are Western Digital WDC, Astera Labs ALAB and Advanced Energy Industries AEIS.

Western Digital, currently sporting a Zacks Rank #1 (Strong Buy), reported a first-quarter fiscal 2026 EPS of $1.78, which beat the Zacks Consensus Estimate by 12%. Revenues of $2.82 billion surpassed the Zacks Consensus Estimate of $2.72 billion. You can see the complete list of today’s Zacks #1 Rank stocks here.

WDC has a long-term earnings growth rate of 22.7% compared with the industry’s 13.8% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 9.18%.

Astera Labs, carrying a Zacks Rank #2 at present, posted a third-quarter 2025 earnings of 49 cents per share, exceeding the Zacks Consensus Estimate by 25.64%. Net revenues of $230.58 million surpassed the Zacks Consensus Estimate by 11.53%.

ALAB has a long-term earnings growth rate of 48.6% compared with the industry’s 20.7% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 29.79%.

Advanced Energy Industries, currently carrying a Zacks Rank #2, reported a third-quarter 2025 EPS of $1.74, which topped the Zacks Consensus Estimate by 18.37%. Revenues of $463.3 million surpassed the consensus mark by 5.14%.

AEIS has a long-term earnings growth rate of 27.9% compared with the industry’s 24.4% growth. The company’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 18.28%.

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

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