Shares of D-Wave Quantum Inc. (NASDAQ:QBTS) surged 8.9% to $17.68 in premarket trading on Monday, following an announcement that AT&T Inc. (NYSE:T) is broadening its use of D-Wave's quantum computing systems for network operations. The agreement marks a significant step forward for the quantum computing company, as AT&T moves from an initial trial phase to deploying multiple operational workloads.
AT&T's Expanded Adoption
AT&T plans to leverage D-Wave's annealing quantum technology for a range of critical network functions, including outage response, network planning, technician dispatch, and traffic management. The telecommunications giant reported that processing times for its first workloads dropped by over 99.5%, reducing a task that previously took one hour to less than 15 seconds. This dramatic improvement underscores the potential of quantum computing in real-world applications.
In a statement, Lucus Haugen, director of data science at AT&T's Chief Data Office, remarked, "The pace at which D-Wave is advancing pushes the boundaries of what can be achieved right now." The company also noted that its agentic AI tools, which initially incorporate D-Wave's technology, helped reduce customer downtime by 12 million hours in 2025.
Market Reaction and Financial Implications
The premarket gain added approximately $533 million to D-Wave's basic equity value, based on 367.27 million shares outstanding. This increase represents close to 91% of its March cash reserves and is about 12.6 times its first-quarter remaining performance obligations (RPOs). However, the financial terms of the AT&T agreement were not disclosed, leaving investors to weigh the potential revenue impact.
D-Wave's stock outperformed its quantum computing peers in premarket trade, with IonQ (IONQ) up 3.99% to $34.15, Rigetti Computing (RGTI) rising 4.10% to $14.73, and Quantum Computing Inc. (QUBT) gaining 3.36% to $7.68. The broader sector also saw gains, but D-Wave's additional boost was attributed to the specific AT&T news.
Earnings and Financial Outlook
D-Wave is scheduled to report its second-quarter earnings on August 6. The company's first-quarter results showed a 81% decline in sales to $2.9 million compared to the same period last year, which included a $12.6 million system sale. However, bookings surged 1,994% to $33.4 million, and remaining performance obligations increased 563% to $42.4 million. D-Wave expects to recognize approximately 54% of its backlog, or $22.9 million, as revenue over the next 12 months.
Despite these positive indicators, the company faces risks. The adjusted EBITDA loss in the first quarter widened to $32.8 million, and D-Wave shares remained 38% lower for the year as of Friday. The lack of disclosed financial terms for the AT&T deal also introduces uncertainty about near-term revenue contributions.
Listing Change and Leadership Comments
In a separate development, D-Wave began trading on the Nasdaq on Monday, after voluntarily switching from the New York Stock Exchange. The ticker symbol remains QBTS. Chief Executive Alan Baratz and his team were scheduled to ring the opening bell at 9:15 a.m. ET. "The quantum market is beginning to separate proof from promise," Baratz stated prior to the event, highlighting the company's progress in demonstrating real-world applications.
The AT&T expansion, while not providing immediate revenue details, signals growing confidence in D-Wave's technology and its potential to drive operational efficiencies. Investors will be closely watching the upcoming earnings report for further insights into the company's financial trajectory.
