QBTS or IONQ: Which Quantum Stock Wins After January Sell-Off?

On Jan. 23, 2026, quantum computing stocks experienced sector-wide weakness as broader risk sentiment shifted due to a combination of global macro and geopolitical uncertainties that heightened investor caution. Fresh trade-war and tariff fears, especially U.S. tariff threats toward European allies and potential retaliatory trade actions, spurred a shift toward safe-haven assets and away from highly speculative quantum technology names, which came under pressure.

D-Wave Quantum QBTS has lost 13.4% since Jan 23. IonQ IONQ also saw a 12.1% pullback, reflecting cooling sentiment toward high-valuation, early-stage quantum plays, consistent with broader sector de-rating as speculative tech valuations normalized and some investors took profits on richly priced, long-horizon innovation stocks.

QBTS-IONQ Price Slash Since Jan. 23

The durability of this pullback is still uncertain, but the contrast between the two names is becoming clearer in 2026. IONQ continues to command leadership on advanced technology and long-term platform potential, whereas QBTS is gaining attention for nearer-term revenue visibility. Let's delve deeper.

Reasons to be Bullish on QBTS in 2026

QBTS has entered 2026 with a strong setup driven by real commercial adoption. Unlike many quantum peers still focused on R&D, D-Wave is already generating revenues from production-ready quantum systems, cloud-based QCaaS offerings and professional services, supported by over 100 paying customers, including Global 2000 companies. Business momentum picked up in 2025 with the sale and deployment of Advantage and Advantage2 systems, including a €10 million European Advantage2 contract and deployments tied to U.S. defense and enterprise customers.

Financial performance also improved meaningfully, with triple-digit revenue growth, expanding gross margins and a cash balance exceeding $800 million at the end of the third quarter of 2025, giving the company ample flexibility to scale operations. On the technology front, the ongoing progress in superconducting gate-model systems broadens its long-term market opportunity, supporting a positive outlook for 2026.

QBTS Estimate Trend

Over the past three months, its loss per share estimate for 2026 has narrowed to 19 cents from a loss of 23 cents. This implies a 7% improvement from the year-ago projected EPS.

Reasons to Be Bullish on IONQ in 2026

IonQ has entered 2026 with strong momentum supported by rapid revenue growth, technical progress and a strong balance sheet. In the last-reported third quarter of 2025, the company delivered 222% year-over-year revenue growth, exceeding the high end of guidance by 37%, highlighting accelerating commercial adoption across quantum computing and adjacent platforms. Technologically, IonQ achieved several key milestones ahead of schedule, including the AQ 64 Tempo system, a world-record 99.99% two-qubit gate fidelity and continued advancement toward fault-tolerant, scalable gate-based quantum computing. Strategic acquisitions such as Oxford Ionics and Vector Atomic expanded IonQ’s capabilities across quantum computing, networking, sensing and cybersecurity, broadening its addressable market and strengthening its platform approach. Financially, IonQ finished the third quarter of 2025 with $1.5 billion in cash and investments and subsequently closed a $2 billion capital raise. Together, execution, scale and capital strength support a bullish outlook for 2026.

IONQ Estimate Trend

Over the past three months, its loss per share estimate for 2026 has widened to $1.74 from a loss of $1.63. This implies a 65.8% improvement from the year-ago projected EPS.

QBTS-IONQ Valuation

QBTS currently trades at a forward 12-month Price-to-Sales (P/S) of 188.2X compared with IONQ’s 72.5X.

Our Take

From an investment perspective, D-Wave Quantum looks better positioned than IONQ despite trading at a richer valuation, as that premium is increasingly supported by near-term revenue visibility, improving loss estimates and active commercial deployments. Meanwhile, IONQ remains more sensitive to valuation resets, with widening loss estimates and returns tied heavily to future platform milestones rather than current monetization. Accordingly, QBTS’ Zacks Rank #3 (Hold) reflects a more balanced risk-reward setup, while IONQ’s Zacks Rank #4 (Sell) signals elevated near-term earnings risk.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research