D-Wave Quantum (NASDAQ:QBTS) Shares Down 8.6% Following Weak Earnings

D-Wave Quantum Inc. (NASDAQ:QBTS) shares fell 8.6% during mid-day trading on Tuesday after the company announced weaker than expected quarterly earnings. The company traded as low as $10.11 and last traded at $10.48. 26,411,022 shares were traded during mid-day trading, an increase of 4% from the average daily volume of 25,449,367 shares. The stock had previously closed at $11.47.

The company reported ($0.13) earnings per share for the quarter, missing the consensus estimate of ($0.10) by ($0.03). D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The firm had revenue of $4.51 million for the quarter, compared to analysts’ expectations of $4.37 million. During the same quarter in the previous year, the firm posted ($0.41) EPS.

Key Stories Impacting D-Wave Quantum

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: Third-quarter revenue rose 21% year over year to $4.5 million, topping estimates, while the net loss narrowed to $48.2 million from $140.0 million a year earlier. D-Wave also reported $503.4 million in cash and marketable securities and access to up to $100 million in conditional federal funding. D-Wave Reports Third Quarter 2026 Results
• Positive Sentiment: Nine-month bookings climbed 611% to $37.4 million, and remaining performance obligations increased 1,221% year over year to $38.3 million. These figures point to potential future business, though they contrast with the weaker latest-quarter bookings. D-Wave Quantum Q3 revenue rises 21% as bookings jump
• Neutral Sentiment: B. Riley cut its price target to $22 from $27 but kept a Buy rating, signaling a more cautious valuation view while maintaining a positive recommendation. B. Riley recommendations
• Negative Sentiment: Adjusted earnings were a loss of $0.13 per share, worse than the $0.10 loss analysts expected. Quarterly bookings fell about 19% year over year to $1.9 million, while operating expenses reportedly rose sharply—raising questions about near-term demand and cash burn despite the revenue beat. D-Wave sinks as Q3 loss misses and quarterly bookings fall
• Negative Sentiment: Several law firms publicized a securities class action alleging misstatements or omissions about D-Wave’s business and financial prospects during February–August 2026. The allegations are not proven, but the litigation adds uncertainty and potential legal costs. Securities fraud class action notice

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the stock. Wedbush started coverage on shares of D-Wave Quantum in a research report on Monday, August 3rd. They set an “outperform” rating and a $40.00 price target for the company. Rosenblatt Securities reaffirmed a “buy” rating and issued a $43.00 price objective on shares of D-Wave Quantum in a report on Friday, August 7th. Weiss Ratings upgraded shares of D-Wave Quantum from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Friday, August 28th. Roth Capital reissued a “buy” rating and set a $30.00 target price on shares of D-Wave Quantum in a report on Thursday, August 6th. Finally, Canaccord Genuity Group set a $35.00 target price on shares of D-Wave Quantum in a report on Thursday, August 6th. Thirteen equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $35.07.

Institutional Investors Weigh In On D-Wave Quantum

A number of hedge funds and other institutional investors have recently made changes to their positions in QBTS. BlackRock Inc. purchased a new stake in shares of D-Wave Quantum during the 2nd quarter worth about $795,206,000. Bank of America Corp DE purchased a new position in shares of D-Wave Quantum in the 2nd quarter valued at about $104,183,000. Bank of New York Mellon Corp acquired a new position in D-Wave Quantum in the 2nd quarter worth about $54,951,000. Wellington Management Group LLP raised its position in D-Wave Quantum by 372.2% during the second quarter. Wellington Management Group LLP now owns 1,820,070 shares of the company’s stock worth $43,663,000 after acquiring an additional 1,434,657 shares during the period. Finally, Van ECK Associates Corp raised its position in D-Wave Quantum by 52.6% during the second quarter. Van ECK Associates Corp now owns 2,339,788 shares of the company’s stock worth $56,132,000 after acquiring an additional 806,835 shares during the period. Institutional investors and hedge funds own 42.47% of the company’s stock.

D-Wave Quantum Price Performance

The company has a quick ratio of 20.42, a current ratio of 20.55 and a debt-to-equity ratio of 0.03. The company has a market capitalization of $3.88 billion, a price-to-earnings ratio of -14.76 and a beta of 2.35. The stock’s 50-day simple moving average is $14.47 and its two-hundred day simple moving average is $18.84.

D-Wave Quantum Company Profile

D-Wave Quantum develops quantum computing systems, software and services for commercial, government and research users. The company focuses on quantum annealing, an approach designed to help solve complex optimization and sampling problems, and offers hybrid tools that combine quantum processing with classical computing. Its offerings include Advantage quantum computers, the Leap quantum cloud service, and software for building and running applications. D-Wave’s technology is used to explore challenges such as scheduling, resource allocation and supply-chain optimization.