IonQ stock gains as Needham reiterates Buy rating on strong revenue

Published 07/08/2025, 12:12
IonQ stock gains as Needham reiterates Buy rating on strong revenue

Investing.com - IonQ, Inc. (NYSE:IONQ), the quantum computing company with a market capitalization of $11.7 billion, received a reiterated Buy rating and $60.00 price target from Needham on Thursday, following second-quarter financial results that exceeded market expectations. According to InvestingPro data, analyst targets for the stock range from $30 to $70, with the stock currently trading notably above its Fair Value.

The quantum computing firm reported second-quarter 2025 revenue above Street expectations and raised its full-year 2025 revenue outlook to $82-100 million from its previous guidance of $75-95 million. This aligns with InvestingPro analysis showing a projected 97% revenue growth for fiscal year 2025, building on the company’s impressive 70% revenue growth over the last twelve months.

IonQ’s revenue outperformance was attributed to faster-than-expected progress on two projects with existing customers, which contributed to the second-quarter upside and supported the increased full-year revenue guidance.

The company adjusted its fiscal year 2025 EBITDA loss forecast upward to reflect higher operating expenses resulting from additional hiring and the pending acquisition of Oxford Ionics, a strategic move that management believes strengthens IonQ’s position for DARPA’s Quantum Benchmarking Initiative.

IonQ also implemented several strategic hires and leadership changes designed to enhance the company’s competitive position in the quantum computing industry, according to Needham’s research note.

In other recent news, IonQ Inc. reported its second-quarter earnings for 2025, highlighting a notable revenue achievement. The company posted a revenue of $20.7 million, surpassing forecasts by 20.99% and exceeding its own guidance by 15%. Despite this revenue success, IonQ experienced a larger-than-expected loss per share, with an EPS loss of $0.70 compared to the anticipated loss of $0.30. These financial results have drawn attention to IonQ’s performance in the quantum computing sector. In a related development, DA Davidson downgraded IonQ’s stock from Buy to Neutral. The research firm maintained its price target at $35.00, citing "various moving pieces and limited visibility" as reasons for the downgrade. These recent developments provide investors with insights into IonQ’s current financial landscape and market position.

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