Quantum Computing Inc revenue hits $3.7M on acquisitions, stock up 19%

Quantum Computing Inc reported Q1 2026 revenue of $3.7 million, up from $39,000 a year earlier, driven by two strategic acquisitions.

The average price target of $17.83 from six analysts implies 43.9 percent upside from the last closing price, according to Zacks Investment Research. The stock carries a Zacks Rank No. 2 (Buy).

Revenue growth was driven primarily by the $110 million acquisition of Luminar Semiconductor and the $5 million purchase of NuCrypt. LSI manufactures photonic components and brings capabilities in lasers, detectors, advanced packaging and manufacturing, complementing QCi's position in thin film lithium niobate integrated photonics. NuCrypt's patent portfolio spans quantum optics, RF-photonics and photonic signal processing, establishing quantum communications as a new commercialization vertical.

Excluding contributions from LSI and NuCrypt, QCi's standalone revenue was approximately $204,000, driven by foundry orders and a NASA research subcontract. This indicates the company's original operations remain in early commercialization stages.

QCi ended the quarter with $1.4 billion in cash against $23.4 million in total liabilities. Total assets stood at $1.6 billion, essentially flat sequentially. The company faces gross margin pressure from low utilization at its Fab 1 facility and the recently acquired LSI operations. Operating expenses rose sharply as the company expanded its engineering, scientific, technical, administrative and sales teams, with $6 million in M&A-related costs.

The company advanced commercialization of its DIRAC quantum-inspired optimization platform, placing a Dirac-3 machine on Quantum Corridor's network. The partnership provides institutions and commercial customers with on-demand access to the system for logistics, finance and supply-chain optimization.

Year to date, QCi shares have gained 19.4 percent, outperforming the broader Internet-Software industry's decline of 4.8 percent. Peer D-Wave Quantum rose 14.3 percent over the same period, while Arqit Quantum lost 25.7 percent.

The quantum computing market is projected to grow from $2.04 billion in 2026 to $18.33 billion by 2034, at a 31.6 percent compound annual rate, according to Fortune Business Insight. Government organizations worldwide are increasing investments in quantum technologies.

QCi trades at 104.5 times forward sales, well above the industry median of 4.97 times. The valuation reflects expectations that the company's photonics-based quantum computing platform will scale from research contracts to larger production deployments.

The guidance raise and acquisition strategy show management expects commercial momentum to accelerate. Investors will watch for updates on Fab 1 utilization and LSI integration progress in the coming quarters.

This article is for informational purposes only and does not constitute investment advice.