Rigetti Computing, Inc.

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Slightly Bullish +25

Rigetti Computing, Inc. (RGTI) Reports Q1 Loss, Beats Revenue Estimates

📉 Rigetti Computing reported a Q1 loss of $0.04 per share, which beats the consensus estimate of a $0.05 loss and represents a 14.35% earnings surprise.

📈 Revenue for the quarter ended March 2026 reached $4.4 million, surpassing the Zacks Consensus Estimate by 35.59% compared to year-ago revenues of $1.47 million.

📊 The company has surpassed consensus EPS estimates four times over the last four quarters, although it has only topped revenue estimates once in that period.

📉 Shares have lost about 14.5% since the beginning of the year versus the S&P 500's gain of 8.1%.

⚠️ The sustainability of the stock's price movement depends heavily on management commentary regarding future earnings expectations and trends in estimate revisions.

📊 Based on mixed estimate revision trends ahead of the earnings release, Rigetti Computing currently holds a Zacks Rank #3 (Hold).

💰 The current consensus EPS estimate for the coming quarter is -$0.04 on $4.71 million in revenues.

🔮 For the current fiscal year, the consensus EPS estimate is -$0.16 on $24.66 million in revenues.

🌐 Rigetti operates in the Internet - Software industry, which currently ranks in the top 33% of Zacks industries.

💡 Historically, stocks from the top half of Zacks-ranked industries have outperformed those from the bottom half by a factor of more than 2 to 1.

Bullish Signals
  • Rigetti Computing beat quarterly revenue estimates by 35.59%, reporting $4.4 million compared to expectations of significantly less, driven by a year-over-year revenue increase from $1.47 million.
  • The company has surpassed consensus EPS estimates four times over the last four quarters, demonstrating consistent ability to beat market expectations.
  • Year-to-date earnings have improved from a loss of $0.08 per share a year ago to an adjusted quarterly loss of $0.04 per share, indicating narrowing losses.
  • Rigetti belongs to the Internet - Software industry, which is currently ranked in the top 33% of all Zacks-ranked industries and has historically outperformed the bottom half by more than 2 to 1.
  • Management's previous ability to deliver a +40% earnings surprise just a quarter ago suggests potential for continued strong performance when guidance is adjusted or revised upward.
Risk Factors
  • Rigetti Computing shares have lost about 14.5% since the beginning of the year, significantly trailing the S&P 500's gain of 8.1%.
  • The company holds a Zacks Rank #3 (Hold) for the stock, indicating expected near-term performance in line with the market rather than upside potential.
  • Over the last four quarters, Rigetti Computing has topped consensus revenue estimates just once, despite surpassing EPS estimates four times, highlighting inconsistent top-line growth.
  • The current fiscal year consensus EPS estimate is -$0.16, and investors should be mindful that the outlook for the industry can have a material negative impact on the stock's performance.
  • A competing stock in the same industry, A2Z Cust2Mate Solutions Corp., is expected to post a quarterly loss of $0.08 with revenues up only 164% year-over-year, which could indicate sector-wide challenges.
Full Analysis
Rigetti Computing (RGTI) reported first-quarter fiscal 2026 earnings, recording an adjusted loss of $0.04 per share, which slightly beat the consensus estimate of -$0.05 and represented an improvement from a -$0.08 loss a year ago. The company generated revenue of $4.4 million for the quarter ended March 2026, surpassing analyst expectations by 35.59% and marking the first time in the last four quarters that Rigetti exceeded revenue consensus estimates. Despite these positive results regarding earnings surprise and revenue growth, the stock has underperformed the broader market, falling approximately 14.5% so far this year compared to an 8.1% gain for the S&P 500. Analysts suggest that the sustainability of Rigetti's stock price will largely depend on management's commentary during the earnings call and upcoming estimates revisions. Currently, the company holds a Zacks Rank #3 (Hold) based on mixed estimate revision trends ahead of the report, projecting a consensus EPS of -$0.04 and revenues of $4.71 million for the coming quarter. The overall outlook remains influenced by industry rankings, with the Internet-Software sector currently placed in the top 33% among over 250 Zacks-ranked industries. As investors look ahead to Rigetti's future trajectory, they will be monitoring shifts in earnings expectations for the current fiscal year, which stand at a projected loss of -$0.16 on expected revenues of $24.66 million.