Shares of D-Wave Quantum (QBTS) surged nearly 49% in May. While the stock was caught up in the larger market rally -- the S&P 500 jumped 5.15% in May while the Nasdaq Composite soared 8.36% -- a major announcement from the federal government sent shares flying.
NYSE: QBTS
Key Data Points
Federal funding sends D-Wave stock soaring
The biggest catalyst came later in the month from the U.S. Department of Commerce, which announced it will invest $2 billion in the quantum industry under the CHIPS and Science Act. Nine quantum computing companies -- including D-Wave -- will receive funds. The government and D-Wave signed a letter of intent for a $100 million investment in exchange for an equity stake.
The market's reaction to the news was immediate. D-Wave stock surged over 33% that day alone, as investors digested the news of such a large investment from the federal government.
The White House views quantum computing as a strategic priority, mirroring its views on AI and chip manufacturing.
Image source: Getty Images
Q1 earnings were mixed
Earlier in the month, D-Wave released its Q1 earnings, showing mixed results, sending shares sliding for a week or so.
Revenue came in at $2.9 million, down 81% year over year (YOY) and well below the $4.1 million consensus. Granted, the scale of that decline was somewhat misleading. A one-time sale during the same period last year had inflated its revenue figure.
That's kind of the name of the game for D-Wave at this point: the revenue continues to be "lumpy."
On the other hand, the company's forward-looking numbers were encouraging. With a $20 million system sale to Florida Atlantic University and a $10 million deal with an unnamed Fortune 100 company, D-Wave's future bookings surged.
You can check out the rest of the numbers in this table.
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $2.9M | $15.0M |
| Net loss | ($18.4M) | ($5.4M) |
| Cash | $588.4M | $304.3M |
| EBITDA (Loss) | ($42.4M) | ($4.6M) |
Investor day and the dual-platform positioning
The stock also got a boost from D-Wave's Investor Day at the New York Stock Exchange (NYSE). Company management outlined its strategy for the future following a major acquisition of Quantum Circuits Inc. earlier in the year.
That deal means D-Wave now has two approaches to actually achieving viable commercial quantum systems. On top of its existing "annealing" technology, Quantum Circuits' "gate-model" gives the company a dual-prong strategy.
