RGTI Stock Down Despite Q4 Earnings Top Estimates, Revenues Decline Y/Y

Rigetti Computing RGTI reported fourth-quarter 2025 adjusted loss per share of 3 cents, narrower than the loss per share of 6 cents in the prior-year quarter. The metric also surpassed the Zacks Consensus Estimate of earnings by 40%.

GAAP loss per share in the reported quarter was 6 cents compared with 68 cents in the prior-year quarter.

However, shares of this company lost nearly 4.3% at yesterday’s after-market trading session.

Rigetti’s Revenue Details

The company reported total revenues of $1.9 million, down 17.9% year over year. The top line missed the Zacks Consensus Estimate by 30%.

For 2025, RGTI registered total revenues of $7.1 million, down 34.3% year over year. Adjusted loss per share for 2025 was 16 cents, narrower than 29 cents reported in 2024.

Rigetti Computing, Inc. Price, Consensus and EPS Surprise

Rigetti Computing, Inc. price-consensus-eps-surprise-chart | Rigetti Computing, Inc. Quote

RGTI’s Margin Trend

In the quarter under review, RGTI’s gross profit declined 35% year over year to $0.7 million. The gross margin significantly contracted 920 basis points to 34.9%.

Selling, general and administrative expenses increased 1% year over year to $5.9 million. Research and development expenses increased 27% year over year to $17.3 million. Total operating expenses of $23.2 million increased 19.2% year over year.

Operating loss for the quarter under review totaled $22.6 million compared with $18.5 million in the prior-year quarter.

RGTI’s Financial Position

RGTI exited the fourth quarter of 2025 with cash, cash equivalents and short-term available-for-sale investments of $443.5 million compared with $446.9 million at the third-quarter end.

The company ended the quarter with no debts on its balance sheet.

Cumulative net cash used in operating activities at the end of the fourth quarter was $58.5 million compared with $50.6 million a year ago.

Our Take

RGTI exited fourth-quarter 2025 results on a mixed note, where its earnings surpassed the Zacks Consensus Estimate while revenues missed the same. Continued decline in revenues and gross margin does not bode well for the stock. Increased operating loss also seems a matter of concern.

Rigetti highlighted a strong momentum this quarter, driven by expanding commercial demand for its on-premises quantum systems and continued traction with government and research institutions. The company secured an approximately $8.4 million purchase order from India’s Centre for Development of Advanced Computing (C-DAC) for a 108-qubit superconducting quantum computer based on Rigetti’s chiplet architecture. The system is expected to be deployed in the second half of 2026 and integrated into C-DAC’s high-performance computing infrastructure to support hybrid classical-quantum workloads and advanced research initiatives. This deal underscores growing institutional interest in domestically hosted quantum infrastructure, particularly in regions accelerating national quantum programs.

Rigetti also continued progressing with previously announced Novera on-premises quantum systems, advancing delivery of two installations representing approximately $5.7 million in purchase orders. These systems are intended to support research and development across quantum hardware innovation, error correction experimentation and broader internal capability expansion. Importantly, the Novera platforms are designed with upgradeability in mind, enabling customers to scale system performance over time as quantum workloads grow more complex. Rigetti also secured a new purchase order for a Novera quantum processing unit (QPU) from a Japanese research organization, marking the company’s first QPU deployment in Japan, with delivery expected in April 2026.

On the technology front, Rigetti reported continued progress in improving system performance and advancing its scalable architecture roadmap. The company achieved two-qubit gate fidelity as high as 99.9% at a 28-nanosecond gate speed on a prototype platform using its proprietary adiabatic CZ scheme, while maintaining 99.9% one-qubit gate fidelity.

Rigetti also demonstrated further progress with chiplet tiling as a scalable architecture approach, which enables higher qubit counts while improving fabrication yield and manufacturing consistency. Alongside these hardware advancements, the company continued collaborating with Riverlane on error correction research, reinforcing efforts to improve system reliability and move closer toward long-term fault-tolerant quantum computing.

Zacks Rank and Stocks to Consider

RGTI carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Intuitive Surgical ISRG, AngioDynamics ANGO and Alcon ALC.

Intuitive Surgical, sporting a Zacks Rank #1 (Strong Buy) at present, has an estimated long-term growth rate of 15.7%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical’s shares have gained 7.6% against the industry’s 3% decline in the past six months.

AngioDynamics, sporting a Zacks Rank #1 at present, has an estimated earnings growth rate of 59.3% for 2026. ANGO’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 82.1%.

AngioDynamics’s shares have rallied 14.5% against the industry’s 3% decline in the past six months.

Alcon, carrying a Zacks Rank of 2 (Buy) at present, has an estimated long-term growth rate of 6.2%. ALC’s earnings surpassed estimates in two of the trailing four quarters and missed twice, with the average surprise being 1.1%.

Alcon’s shares have risen 6.6% against the industry’s 3% decline in the past six months.

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

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