Key Highlights
- RGTI shares surged approximately 11.9% following the TangleLab announcement, a quantum-classical hybrid supercomputing testbed
- The initiative represents a partnership between Rigetti, 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 to PSC, targeting full operational status 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, climbing as much as 11.9% during Monday’s morning session following the unveiling of a new partnership involving Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center.
Dubbed TangleLab, the initiative centers on creating a hybrid quantum-classical supercomputing testbed, with financial backing from a $5 million National Science Foundation grant. Rigetti shares reached an intraday peak of $15.97 before experiencing modest profit-taking.
According to the agreement, Rigetti will deliver its 9-qubit Novera quantum processing unit to PSC, where it will be combined with classical high-performance computing infrastructure. The construction phase is slated to commence on September 1, 2026, with complete operational capability expected in 2027.
This development strengthens the evolving collaboration between Rigetti and HPE, which broadened its quantum-HPC alliance portfolio during the Discover 2026 conference held 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 firm maintains $569 million in cash reserves and short-term investments.
Upcoming Financial Report
Rigetti is scheduled to release its second quarter 2026 earnings on August 6. Analysts anticipate revenue of approximately $5.09 million, representing substantial growth from $1.80 million during the comparable period last year.
The consensus recommendation among analysts stands at Buy, with a mean price target of $31.60 ā significantly exceeding current trading levels.
However, despite the optimistic outlook, Rigetti’s journey to sustained profitability appears prolonged. Revenue generation remains modest relative to its R&D expenditures, and the potential for shareholder dilution persists as the company depends heavily on government contracts and milestone-based payments for financial stability.
Government Funding Pipeline Expands
In May, Rigetti entered into a letter of intent with the U.S. Department of Commerce that could deliver up to $100 million in federal funding distributed over three years. The agreement also includes provisions for the government to acquire an equity position in the company.
Additionally, Rigetti maintains an $8.4 million contract with India’s Centre for Development of Advanced Computing, with delivery anticipated during the latter half of 2026.
Further ahead, the company has outlined ambitions to deploy a U.K.-based quantum system exceeding 1,000 qubits within three to four years, which could serve as a significant growth catalyst if executed according to timeline.
For perspective, RGTI was trading near $56 last October. Current levels around $14ā$15 represent a substantial decline from those peaks, despite Monday’s positive momentum.
Broader equity market strength contributed to Monday’s advance. The S&P 500 climbed 0.7%, the Dow Jones Industrial Average increased 1.1%, and the Nasdaq Composite rose 0.7%, providing a favorable environment for quantum computing equities.
Rigetti’s cloud-based quantum computing service is accessible through Microsoft Azure, although it remains in nascent stages and has yet to generate substantial recurring revenue streams.
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