Quick Overview
- Shares of RGTI climbed approximately 11.9% following the TangleLab announcement, a hybrid quantum-classical computing platform
- The initiative involves a three-party partnership with Hewlett Packard Enterprise and Pittsburgh Supercomputing Center
- The National Science Foundation is providing $5 million in grant funding for the project
- Rigetti plans to deploy its 9-qubit Novera QPU at PSC, with complete operational status anticipated by 2027
- Second-quarter 2026 financial results are scheduled for August 6, with analysts forecasting approximately $5.09 million in revenue
Shares of Rigetti Computing experienced a significant rally on Monday morning, climbing as high as 11.9% following the company’s announcement of a strategic partnership with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center.
Dubbed TangleLab, the initiative represents a hybrid quantum-classical supercomputing platform supported by $5 million in funding from the National Science Foundation. Trading activity saw Rigetti shares reach an intraday peak of $15.97 before experiencing a modest retreat.
The agreement calls for Rigetti to provide its 9-qubit Novera quantum processing unit to PSC. This QPU will be combined with traditional high-performance computing infrastructure. Project construction is scheduled to commence on September 1, 2026, with complete operational capabilities expected in 2027.
This development strengthens the evolving partnership between Rigetti and HPE, which broadened its quantum-HPC collaborations during its Discover 2026 event in June.
During the first quarter of 2026, Rigetti generated $4.4 million in revenue while allocating $19.9 million toward research and development. The company maintains $569 million in cash reserves and short-term investments.
Upcoming Financial Report
The company is set to release its second-quarter 2026 financial results on August 6. Analysts are anticipating revenue of approximately $5.09 million, representing a substantial increase from the $1.80 million reported in the comparable period last year.
Current analyst sentiment leans toward a Buy rating, with a mean price target of $31.60 — significantly higher than current trading levels.
However, Rigetti’s journey to profitability appears lengthy. The company’s revenue generation remains modest relative to its research and development expenditures, and the potential for shareholder dilution persists as it depends on government contracts and milestone-based payments for operational funding.
Government Backing Gains Momentum
This past May, Rigetti entered into a letter of intent with the U.S. Department of Commerce that may provide access to up to $100 million in federal support over a three-year period. The agreement also includes provisions for the government to acquire an equity position.
Additionally, Rigetti maintains an $8.4 million agreement with India’s Centre for Development of Advanced Computing, with delivery anticipated during the latter half of 2026.
In terms of future milestones, the company has outlined intentions to deploy a U.K.-based system featuring more than 1,000 qubits within a three-to-four-year timeframe, which could represent a significant growth driver if executed according to plan.
For perspective, RGTI traded near $56 this past October. Current pricing hovers around $14–$15, remaining considerably below those previous peaks despite Monday’s gains.
Broader market strength contributed to Monday’s upward movement. The S&P 500 advanced 0.7%, the Dow Jones Industrial Average climbed 1.1%, and the Nasdaq Composite increased 0.7%, creating a favorable environment for quantum computing equities.
Rigetti’s cloud-based quantum computing service is currently accessible through Microsoft Azure, though it remains in nascent stages and has yet to generate substantial recurring revenue streams.
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