D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
On Thursday, DA Davidson reaffirmed its Buy rating on IonQ, Inc. (NYSE:IONQ) with a steady price target of $35.00, while analyst targets overall range from $29 to $54. The firm’s endorsement comes in the wake of IonQ’s first-quarter earnings for 2025, which aligned with market expectations. The company’s management also confirmed their guidance for the remainder of the year. According to InvestingPro data, IonQ has demonstrated impressive revenue growth of over 95% in the last twelve months, though analysts anticipate the company won’t be profitable this year.
IonQ’s recent performance has been bolstered by strategic acquisitions, including Lightsynq and Capella Space, which DA Davidson believes strengthens IonQ’s position as a leading entity in the quantum computing sector. These acquisitions are seen as significant steps in IonQ’s expansion and integration into the broader technology market. InvestingPro analysis shows the stock has delivered an exceptional return of 231.89% over the past year, though investors should note its high price volatility.
The analyst from DA Davidson expressed confidence in IonQ’s trajectory, emphasizing the company’s potential and current standing in the industry. "We reiterate our BUY rating and $35 price target on IONQ following solid 1Q25 earnings that met expectations with management reiterating their guidance for the full-year," the analyst stated. InvestingPro subscribers can access 12 additional key insights about IonQ, including detailed analysis of its financial health and growth prospects.
IonQ has been actively working to establish itself as a premier quantum computing platform. The company’s focus on innovation and strategic growth through acquisitions is a testament to its commitment to maintaining a competitive edge in this rapidly evolving field.
The confirmation of the full-year guidance by IonQ’s management suggests a stable outlook for the company’s future operations and financial health. Investors and stakeholders are thus provided with a clear expectation of IonQ’s performance trajectory for the upcoming year.
In other recent news, IonQ reported first-quarter revenue of $7.6 million, surpassing the midpoint of its previously provided guidance range but falling short of the analyst consensus estimate of $16.25 million. The company posted a net loss of $32.3 million, translating to an adjusted earnings per share loss of $0.14, which was better than the analyst estimate of a $0.25 loss per share. IonQ announced a significant $22 million deal with EPB to establish the first commercial quantum computing and networking hub. Additionally, the company plans to acquire Lightsynq Technologies to accelerate its quantum internet and quantum computing roadmap. As of March 31, 2025, IonQ held cash and cash equivalents of $697.1 million, supported by the closing of a $372.6 million ATM facility. For the full year 2025, IonQ expects revenue to be between $75 million and $95 million, with second-quarter revenue projected between $16 million and $18 million. These developments reflect IonQ’s ongoing efforts in commercialization and expansion in the quantum computing and networking sectors.
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