IonQ, Inc. (IONQ) Earnings & Analysis

Latest quarter

IonQ reported Q2 FY2026 revenue of $80.1 million, above the $66.4 million consensus and up from $20.7 million a year earlier. Adjusted EPS was −$0.33, below the consensus of −$0.29. Revenue also exceeded the company’s $65.0 million–$68.0 million guidance range.

The company’s filing attributed the revenue increase primarily to progress on specialized quantum computing hardware arrangements and revenue from acquisitions. CFO Inder Singh said organic revenue grew 132% year over year, with deployments of fifth-generation systems driving the quarter’s revenue above IonQ’s expectations.

Gross margin fell to 24.9% from 59.8% a year earlier. IonQ’s filing attributed higher revenue costs primarily to labor for servicing contracts and materials for quantum products. Diluted EPS was −$5.08, compared with −$0.70 a year earlier; Singh said the quarter’s net loss was primarily due to a noncash warrant valuation impact. Free cash flow was −$114.0 million, compared with −$54.1 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

CFO Inder Singh said deployments of fifth-generation quantum computers were the largest driver of revenue exceeding IonQ’s expectations. He said subsystems were being delivered and assembled for KISTI in South Korea, while a system for QuantumBasel was in final assembly in Switzerland. He added that approximately 50% of quarterly revenue came from international customers and 60% from commercial, or non-U.S. government, customers.

Singh said multiproduct sales grew 40% year over year and represented about 25% of quarterly revenue. Asked about customers buying multiple products, he said computing customers were also discussing security, and the sales team was working across the portfolio. He described remaining performance obligations as a source of revenue visibility, reporting $485 million at quarter-end, up from $470 million in Q1.

CEO Niccolo de Masi said IonQ had received its first fully integrated quantum processing units from SkyWater and was testing them in College Park. Asked about the path from prototypes to systems, he said IonQ was working on several chip generations in parallel and expected to begin commissioning and deploying systems in the first half of 2027.

De Masi said the SkyWater acquisition adds semiconductor manufacturing and that IonQ intends to remain a merchant supplier to other quantum companies, with protections for customer intellectual property. Singh said IonQ expected the integration to lower quantum hardware development costs over time. He also said the quarter’s adjusted EBITDA included about $20 million of additional SkyWater spending and approximately $10 million of higher investment in pre-integration and supply-chain costs.

Asked about combined-company figures, Singh said the companies needed time to review intercompany eliminations and other adjustments. He said revenue from IonQ’s purchases from SkyWater would be eliminated on consolidation.

Guidance

IonQ raised its FY2026 revenue guidance to $280.0 million–$290.0 million. Singh said the range covers IonQ alone; the company needs to integrate SkyWater and assess intercompany eliminations and accounting adjustments before providing combined-company guidance.