Rigetti Computing’s Q2 2026 Earnings Call: Fidelity Targets and Quantum Advantage Timelines Don’t Match

Date of Call: Aug 6, 2026

Financials Results

• Revenue: $5.1M, compared to $1.8M in Q2 2025 (up YOY)
• EPS: Non-GAAP net loss of $0.05 per diluted share, compared to a loss of $0.04 per diluted share in Q2 2025
• Gross Margin: 43%, compared to 31% in the second quarter of 2025
• Operating Margin: Operating loss was $28.1M compared to $19.6M in Q2 2025

Business Commentary:

Revenue and Financial Performance:

• Rigetti reported revenue of $5.1 million for Q2 2026, compared to $1.8 million in Q2 2025, indicating a significant year-over-year increase.
• The growth was driven by on-premises Novera QPU sales and the recognition of previously announced purchase orders.

Technology and Product Development:

• The company's highest qubit count system, CPS-1-108Q, operates with a median single qubit gate fidelity of approximately 99.9% and a median two-qubit gate fidelity of roughly 99.1%.
• Rigetti is focused on improving these metrics and is executing on a set of chip design and material initiatives to enhance coherence times and gate fidelities.

Strategic Partnerships and Government Engagement:

• Rigetti signed a letter of intent with the U.S. Department of Commerce for up to $100 million in funding over three years to accelerate superconducting quantum computing.
• This funding is intended to address key technical challenges in scaling and structure, and it aligns with the company's long-term strategy to strengthen its position in the quantum computing ecosystem.

Customer Engagement and Market Traction:

• The company is seeing increased engagement from researchers and enterprises through platforms like Amazon Bracket and Microsoft Azure Quantum.
• Rigetti is delivering on-premise systems, with recent deployments including a 108-qubit system in India, and is expanding collaborations with institutions like HPE and the Pittsburgh Supercomputer Center.

Sentiment Analysis:

Overall Tone: Positive

• CEO stated 'We are encouraged by our progress... and the growing momentum in the quantum computing ecosystem.' Management highlighted strong YOY revenue growth, improved customer engagement, strategic government partnerships, and continued technical progress on the roadmap.

Q&A:

• Question from Brian Kinslinger (Alliance Global Partners): Primary limitation on your new architecture to fidelity. On the last conference call, you highlighted coherence time as a day. When is a reasonable timeframe where we can expect to see that impact?
  Response: Coherence time is the current limiting factor for two-qubit gate fidelity. Management expects a factor of two or three improvement, is working on technical solutions, and anticipates fidelity to increase at the 108-qubit level before the end of 2026.

• Question from Brian Kinslinger (Alliance Global Partners): There was a change in the leadership in DARPA's QBI. Has this had an effect? ...do you think this is still achievable by year end?
  Response: The leadership change at DARPA did not affect Rigetti's plan. Management continues to work with DARPA on Phase B requirements, remains optimistic about achieving it soon, and is also engaged in multiple other government initiatives globally.

• Question from Chris Sankar (TVTowon): First question on the current tooling and your, what's the annual QPU production capacity, and what kind of CAPEX requirements should we expect for that?
  Response: FAB1's capacity is not a concern; it is more about equipment capability and not an automated line. CAPEX in 2026 is expected to be elevated due to investments in dilution refrigeration and fab equipment to support higher qubit count systems.

• Question from Chris Sankar (TVTowon): Another follow up on HPE, the 9Q with Navira QPU system. Will you be providing just QPU chips only? Or would it be QPU plus dilution, fridge controls and other infrastructure? And what is kind of like the timing for delivery on that?
  Response: The HPE partnership includes a full nine-qubit system (QPU, dilution fridge, controls) built by Rigetti. Delivery is expected in 2027, with the exact quarter to be determined.

• Question from Troy Jensen (Cantor Fitzgerald): Just any thoughts on the executive order and has there been any change in kind of government?
  Response: The executive order has increased emphasis and funding initiatives for quantum computing in the U.S., including the Department of Commerce funding and other bills. Similar activity is seen in the UK and other governments globally.

• Question from John McPeak (Rosenblatt Securities): Could you talk a little bit about what that's about, if anything? [Regarding deferred revenues and billing scores]
  Response: The change in deferred revenues and billing was primarily related to the CDAC order in India, involving pre-payments.

• Question from John McPeak (Rosenblatt Securities): I'm curious if you've had some comments optical interconnect discussions with respect to with your open architecture...
  Response: Rigetti is exploring optical interconnect (e.g., with QFOX) for future scaling beyond 1,000 qubits, but it is still early research and not yet on the roadmap.

• Question from Quinn Bolton (Needham & Company): Now that you have your 108 qubit system up and running in the cloud, can you just talk about what you guys are seeing in regard to user engagement...
  Response: User feedback is excellent, with Rigetti's system ranked among the top in the world. Customers praise its ease of use, reliability, and consistent uptime, though current usage remains for research purposes.

• Question from Tyler Anderson (Craig Column): For the HPE and PSC deployment, is this DILFridge and control unit yours or... other systems.
  Response: The full system (dilution fridge, control unit) is designed and built by Rigetti, using third-party components and partnering with companies like Quanta.

• Question from Gary Mobley (Stonex Group): I know in the past you've done some work for the UK's NQCC... What's the prospect for renewal of the funding...
  Response: Rigetti is involved in the UK's new 'Procure' initiative and continues to work with the National Quantum Computing Centre (NQCC). The UK government's increased funding is part of a broader global trend with governments, universities, and now more commercial entities showing growing interest in quantum computing.

Contradiction Point 1

Timeline for HPE Partnership System Delivery

Contradiction on when the integrated system with HPE will be delivered.

Chris Sankar (TVTowon) - Chris Sankar (TVTowon)

2026Q2: Delivery is expected in 2027 (exact quarter TBD). - [Subodh Kulkarni](CEO)

"For the HPE and PSC deployment, will you provide QPU chips only or a full system including dilution fridge and controls, and what is the delivery timeline?" - Chris Sankar (TVTowon)

2026Q2: The delivery is expected in 2027 (specific quarter TBD). - [Subodh Kulkarni](CEO)

Contradiction Point 2

Target Timeline for 108-Qubit Gate Fidelity Improvement

Inconsistency regarding when the 108Q system's gate fidelity will reach a certain target.

Brian Kinslinger (Alliance Global Partners) - Brian Kinslinger (Alliance Global Partners)

2026Q2: The goal is to increase fidelity at the 108-qubit level before the end of 2026. - [Subodh Kulkarni](CEO)

What is the primary limitation on your new architecture's fidelity, and when can we expect to see the coherence time issue addressed? - Brian Kinslinger (Alliance Global Partners)

2026Q2: Rigetti expects to improve fidelity on the Cepheus-1-108Q system to ~99.5% for two-qubit gates by year-end. - [Subodh Kulkarni](CEO)

Contradiction Point 3

Timeline for Achieving Quantum Advantage

Contradiction on when key milestones for quantum advantage will be reached.

Brian Kinslinger (Alliance Global Partners) - Brian Kinslinger (Alliance Global Partners)

2026Q2: The goal is to increase fidelity at the 108-qubit level before the end of 2026. - [Subodh Kulkarni](CEO)

What is the primary limitation on your new architecture's fidelity, and when can we expect to see that addressed? - Quinn Bolton (Needham & Company)

2026Q1: The ~3-year quantum advantage system will use some form of error mitigation and correction... Full implementation... is expected in the 5- to 7-year timeframe. - [Subodh Kulkarni](CEO)

Contradiction Point 4

Status of 108-Qubit System's Gate Fidelity Improvements

Contradiction on whether new technologies are integrated into the current system.

Tyler Anderson (Craig-Hallum) - Tyler Anderson (Craig-Hallum)

2026Q2: New technologies like tantalum capping are not yet deployed in the live 108-qubit system. - [Subodh Kulkarni](CEO)

Was integrating technologies to improve coherence time necessary to meet original fidelity targets, or are they held in reserve? - Quinn Bolton (Needham & Company)

2026Q1: The learnings from the prototype are being applied as fast as possible. The adiabatic CZ and fast gates will be part of future systems deployed in the next few years. - [Subodh Kulkarni](CEO)

Contradiction Point 5

Nature of UK Government Funding Initiative (Procure)

Contradiction on whether the funding is a new, distinct program or part of an existing framework.

What are your thoughts on the recent earnings report, Gary Mobley (Stonestreet Group)? - Gary Mobley (Stonestreet Group)

2026Q2: The UK government has launched a multi-year 'Procure' initiative similar to DARPA's QBI. - [Subodh Kulkarni](CEO)

What is the prospect for the renewal of UK government funding (NQCC/Procure), and how does it compare to a year ago? - Brian Kinstlinger (Alliance Global Partners)

2026Q1: The investment is part of the UK's structured ProQure program (phases starting July/August). - [Subodh Kulkarni](CEO)