Source: Gordon Thompson
Jefferies Upholds “Buy” Rating for D-Wave Quantum Amid Rising Demand for Quantum Computing Technology
On May 12, 2026, prominent analyst firm Jefferies upheld its “Buy” rating for D-Wave Quantum, a trailblazer in the realm of quantum computing technology. The company, which is listed on NYSE under the ticker QBTS, has been spearheading advancements in both quantum annealing and gate-based quantum computers. This unique dual approach enables D-Wave Quantum to address a broader spectrum of intricate computational issues for its clients.
This reaffirmation of the “Buy” rating was tied to a report by TheFly, which quoted Jefferies stating, “Demand for D-Wave Quantum technology is clear.” This statement signals a bullish long-term perspective on the company’s potential, despite its recent mixed financial performance.
D-Wave Quantum’s Q1 Earnings: A Closer Look
The Q1 earnings report of D-Wave Quantum, although underwhelming in terms of revenue, brought forth several optimistic indicators. The company generated nearly $2.9 million in revenue, falling short of Wall Street’s projection of $5.01 million and marking a downturn of 80.9% from the previous year.
However, D-Wave Quantum’s net loss was relatively smaller than anticipated. The company reported a net loss of almost $18.5 million, or 5 cents per share, which is notably less than the 8-cent loss analysts had previously forecasted.
Record Bookings Indicate Robust Future Business
Despite the disappointing revenue, D-Wave Quantum reported record bookings, a critical metric representing future business contracts. The company witnessed a year-over-year surge of 1,994% in bookings, signifying robust future business prospects. This exponential growth can be attributed to significant deals with businesses and universities underlining the ongoing strong demand for its technology.
Alan Baratz, D-Wave Quantum’s CEO, had earlier advised investors about the possibility of experiencing “lumpy” revenue as the company expands. In financial terms, “lumpy” revenue implies an irregular earnings pattern from quarter to quarter. This is not uncommon for a tech company on an aggressive growth trajectory.
A Solid Pipeline of Future Work
Apart from the surge in bookings, D-Wave Quantum also reported a substantial growth in its remaining performance obligations, which now stand at $42.4 million. Remaining performance obligations refer to the future revenue that the company is expected to recognize from contracts that have already been signed. This demonstrates a solid pipeline of future work, further cementing the company’s growth potential.
Conclusion
In conclusion, D-Wave Quantum, despite missing revenue expectations in Q1, paints a promising picture for the future. Backed by a buoyant demand for its quantum computing technology, the company has managed to secure record bookings and boasts a solid pipeline of future work. Its dual approach in quantum annealing and gate-based quantum computers allows it to cater to a wide range of complex computational problems, making it an attractive investment proposition. As Jefferies maintains a “Buy” rating, it remains to be seen how D-Wave Quantum will leverage its opportunities and navigate its growth trajectory moving forward.