IONQ Stock Dips 11% After Q3: Should Investors Buy, Hold, or Exit?

IonQ, Inc. IONQ posts strong revenue growth and achieves major milestones, but shares fall post-third-quarter earnings release as profits remain out of reach. So, what should investors do next? Let’s have a look in detail –  

IONQ Q3 Revenue Surges — Guidance Raised 

As stated in the third-quarter earnings report, IonQ’s revenues were impressive, to say the least. IonQ’s revenues reached $39.9 million, representing a 222% year-over-year increase. Revenues also exceeded the higher end of the earlier forecast by 37%.  

IonQ remains optimistic about future growth, raising its 2025 revenue guidance to $110 million while maintaining cost control and scaling operations across multiple industry sectors. As of Sept. 30, 2025, IonQ held $1.5 billion in cash, which the company can use for research, expansion, and driving revenue growth. 

IONQ’s Strategic Partnerships Enhance Growth Potential 

IonQ recently partnered with the U.S. Department of Energy (DOE) to further quantum technologies in space. The memorandum of understanding with the DOE demonstrates IonQ’s key role in quantum ground-to-orbit-to-ground capabilities.  

IonQ also expanded its full-stack quantum platform, improving control systems and atomic precision through acquisitions of Vector Atomic and Oxford Ionics. Vector Atomic’s leading sensing and timing technologies aim to strengthen IonQ’s products for both commercial and government markets. Similarly, IonQ’s quantum systems are integrating with Oxford Ionics’ ion trap technology to develop high-fidelity architectures. 

IONQ Achieves New Quantum Milestones 

IonQ has recently made significant technical advances in quantum computing, reinforcing its leadership in the industry and providing a competitive edge over pure-play rivals like D-Wave Quantum Inc. QBTS and Rigetti Computing, Inc. RGTI. 

IonQ’s expertise in precision engineering helped achieve a new record of #AQ 64 in algorithmic qubit performance. Chairman and CEO Niccolo de Masi said this milestone “reflects the maturity of our hardware, software, and applications stack, and reinforces our leadership in making quantum systems commercially valuable today.”

IonQ also set a record with 99.99% two-qubit gate fidelity, becoming the first publicly traded quantum company to reach the ‘four-nines’ benchmark. This achievement indicates reduced error rates and enhanced capability to run more complex algorithms.  

Why Is IONQ Stock Down After Q3—and What Should Investors Do? 

Despite reaching quantum milestones, forming key partnerships, and showing revenue growth, IonQ’s shares have fallen 11.4% since its third-quarter earnings release. This decline is mainly due to the company’s lack of profitability. For the third quarter, IonQ reported a net loss of $1.1 billion and an adjusted earnings per share of -$0.17.  

Therefore, new investors should proceed cautiously, especially given its high forward price-to-sales (P/S) ratio of 157.95 compared to the Computer-Integrated System industry’s ratio of 5.54, which could lead to sharp declines during a broader market downturn. 

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However, stakeholders may overlook short-term declines and hold onto IonQ stock given its strong revenue growth, healthy cash position, strategic partnerships, and technological breakthroughs that reinforce its dominance in the quantum computing industry. For now, IonQ has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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

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