Advancements in the technologies used for quantum computing over the last few years have led investors to pour billions into a handful of companies developing quantum computers. That's particularly benefited pure-play quantum computing stocks like Rigetti Computing (RGTI +4.12%) and D-Wave Quantum (QBTS +7.75%). Even after strong performances in 2025, analysts remain optimistic about the stocks in 2026.
One of those stocks appears particularly interesting at the moment, with Wall Street analysts' price targets suggesting upside of as much as 92% in 2026. All 14 analysts covering the stock rate it a buy, which makes D-Wave Quantum the quantum computing stock to watch in 2026.
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A differentiated approach to quantum computing
There are two core approaches to building a quantum computer: gate-based and quantum annealing.
Gate-based quantum computers, like those designed by Rigetti, solve precise problems that require precise answers. If you want to break an encryption, for example, a gate-based quantum computer can theoretically do that for you. The big problem with gate-based quantum computers is that they're prone to errors. As you add more gates, the error challenge grows exponentially. Improvements in error correction are supporting continued scaling of these computers, but they still aren't big enough to handle real-world applications.
As a result, companies building gate-based technology are highly speculative. If they can crack the technology needed to scale, they could develop general-purpose quantum computers that can displace inferior technology. That's a huge payoff, but it also carries a huge risk.
D-Wave's approach is called quantum annealing. It's not as accurate as gate-based quantum chips, but it can be useful for optimization problems where a "close-enough" solution is still very valuable. Everything from resource optimization to logistics routing, to material engineering, to drug discovery can benefit from D-Wave's quantum computers.
Importantly, D-Wave's solution isn't as prone to errors as gate-based solutions, and it's more power-efficient. That makes it immediately applicable and accessible for many businesses. As a result, D-Wave already counts over 100 customers.
NYSE: QBTS
Key Data Points
2025's momentum could carry into 2026
D-Wave's revenue growth flatlined in 2024, but the release of its Advantage2 system in 2025 spurred a huge step up in revenue. Sales are up 235% through the first nine months of the year, reaching $21.8 million. Analysts currently expect D-Wave's full-year revenue to reach $25.5 million while climbing to $39.5 million in 2026.
That growth will be supported by a strong sales pipeline, which has seen larger average deal sizes in 2025 compared to prior years. It booked a high-six-figure deal with an international airline, for example, and a multiyear 10 million euro deal to build a new research facility in Europe.
That said, D-Wave continues to generate losses every quarter. Its adjusted EBITDA loss through the first nine months of the year expanded 15% despite the rising sales. The company is investing heavily in research and development to advance its technology and expand its applications. Sales and marketing expenses have also increased in line with the rise in sales. While operating losses could improve as D-Wave scales, it's not looking to become profitable anytime soon.
As a result, D-Wave remains a very speculative company. While it has the advantage of a diverse range of customers and commercial applications for its technology in the near term, it's still working to ensure its annealing processes have a place in quantum computing for the long run as gate-based solutions continue to improve.
Where Wall Street thinks the stock is headed in 2026
Analysts' high price target for D-Wave currently sits at $48 per share. That's nearly double the current price as of this writing. Even the median price target of $40 represents huge upside in the stock.
The primary driver of that improvement is continued sales momentum. Analysts currently expect the company to continue operating at a similar level of losses in 2026 and 2027. However, strong sales results could give the company more leeway to invest in R&D and sales to scale the business.
It's important for investors to consider D-Wave stock's price-to-sales ratio, though. The stock currently trades for 335 times analysts' forward revenue estimates. That's an eye-popping multiple, making the stock extremely risky. As such, investors should exercise caution when purchasing the stock and ensure that they allocate an appropriate amount of their portfolio to the highly speculative name.
