D-Wave Quantum Inc. (QBTS) saw its stock decline 4.3% on Friday, closing at $18.49, as the quantum computing firm prepares to release its first-quarter fiscal 2026 earnings on May 12. The drop adds to market pressure, with investors closely watching the report for signs of real demand amid a surge in bookings and sector volatility.
The company previously announced that first-quarter-to-date bookings in 2026 exceeded $32.8 million, surpassing the $18.7 million recorded for the full year 2025. Bookings represent customer commitments expected to generate future net revenue. For 2025, D-Wave reported $24.6 million in revenue, a 179% increase over 2024, but still a modest figure compared to its market capitalization of roughly $6.3 billion.
Chief Executive Alan Baratz and Chief Financial Officer John Markovich will discuss the results and outlook during an earnings call at 8 a.m. Eastern on May 12. The report is seen as a critical test for D-Wave, which has shifted its narrative from technological breakthroughs to proving that commercial interest can translate into consistent revenue streams.
D-Wave specializes in annealing quantum systems, designed for optimization tasks like scheduling and routing, and also develops gate-model quantum computing. The company claims to be the only operator working on both technologies. Its competitors, IonQ and Rigetti Computing, also closed lower on Friday, with IonQ down 2.2% to $42.69 and Rigetti falling 1.5% to $16.61.
Analyst Nehal Chokshi of Northland Capital Markets initiated coverage on D-Wave with a Market Perform rating and a $22 price target. He also rated IonQ as Outperform with a $55 target and Rigetti as Market Perform with a $20 target. Chokshi views quantum computing as a potential solution for the growing demands of artificial intelligence but sees D-Wave and Rigetti as niche players unlikely to lead AI training in the near term. He suggests that a diversified portfolio of quantum stocks could help manage technology risk.
Despite the optimism around quantum technology, D-Wave faces significant financial hurdles. The company reported a net loss of $355.1 million for 2025, with operating cash outflows of $72.0 million. In its annual report, D-Wave warned of continued losses and high costs, and noted that setbacks in research, production, or the integration of Quantum Circuits could further pressure results.
Shareholders also have a key date on the calendar: D-Wave's annual meeting is scheduled for June 4, according to a proxy filing. Investors will vote on the re-election of directors Alan E. Baratz and Sharon Holt, approve executive compensation, and decide on ratifying Grant Thornton as the company's auditor for 2026.
As the May 12 earnings date approaches, the central question for D-Wave remains whether its bookings, cloud usage, and system sales are scaling at a pace that meets investor expectations. The market is looking for proof that the buzz around quantum computing is translating into tangible business growth.
