Rigetti Shares Face Analyst Scrutiny Following Quarterly Results

Financial analysts have significantly revised their outlook for quantum computing firm Rigetti after the company released its third-quarter 2025 financial report on November 10. While the loss per share of $0.03 came in better than anticipated, a substantial revenue decline prompted several major investment banks to slash their price targets. Market participants now question whether the stock faces prolonged downward pressure or if current concerns are overstated.

Institutional Confidence and Market Positioning

Despite the challenging quarterly performance, market data reveals some supportive indicators. Short interest declined by 6.13%, suggesting diminishing bearish sentiment toward the company. Institutional investors maintain significant positions, holding over 35% of outstanding shares, demonstrating continued confidence in Rigetti’s long-term prospects. The analyst consensus rating remains “Moderate Buy,” though with substantially reduced price objectives across the board.

Contract Wins and Strategic Alliances

Beyond the quarterly headlines, Rigetti has secured several significant contracts that highlight its technological capabilities. In September 2025, the company received orders totaling approximately $5.7 million for two of its Novera™ quantum systems. Additionally, Rigetti entered into a three-year, $5.8 million agreement with the Air Force Research Laboratory. Strategic collaborations with industry leader NVIDIA, Montana State University, and India’s C-DAC further validate the company’s position within the quantum computing ecosystem.

The company maintains its ambitious development roadmap, targeting delivery of a system exceeding 100 qubits by the end of 2025 and a 1,000+ qubit system by the conclusion of 2027. The critical challenge remains translating these technical milestones into sustainable revenue streams.

Should investors sell immediately? Or is it worth buying Rigetti?

Financial Performance Details

Rigetti’s quarterly financial results revealed concerning trends. Revenue reached $1.95 million, not only missing analyst expectations of $2.17 million but also representing an 18.1% decrease compared to the same period last year. More alarming was the gross margin contraction, which plummeted to 21% from 51% in the prior year’s quarter.

This performance triggered immediate reactions from financial institutions. Benchmark reduced its price target from $50 to $40, while B. Riley cut its projection from $42 to $35 and downgraded the stock to “Neutral.” These adjustments underscore a growing concern that Rigetti’s commercial progress fails to match its technological advancements.

The next significant test for Rigetti arrives on March 5, 2026, when the company reports fourth-quarter results. Until then, investors will closely monitor whether the quantum computing pioneer can bridge the gap between its ambitious technological roadmap and sustainable commercial success.