Rigetti Computing Faces 108-Qubit Cepheus Delay Despite $8.4 Million Government Deals
Cowen & Co. downgraded Rigetti Computing to Hold after the stock tumbled 23% year-to-date, citing disappointing financials and roadmap resets. A postponed launch of the 108-qubit Cepheus system to early 2026 contrasts with secured $8.4m contracts with India's C-DAC and the U.S. Air Force.
1. Cowen Downgrade and Stock Performance
On February 12, Cowen & Co. lowered Rigetti Computing’s rating to Hold as shares fell 23% year-to-date. The stock traded at $16.46, down 3.02% intraday, and has swung between $15.75 and $17.09 today, compared with a 52-week range of $6.86 to $58.15 and a $5.43 billion market cap.
2. Cepheus Launch Delay
Rigetti postponed the rollout of its 108-qubit Cepheus quantum processor to early 2026, reshaping its hardware roadmap. The company still targets more than 150 qubits by year-end and plans to exceed 1,000 qubits by 2027, raising questions about development pace and competitive positioning.
3. Government Contracts and Financial Outlook
Rigetti secured $8.4 million in agreements with India’s C-DAC and the U.S. Air Force, offering medium-term revenue visibility. However, the company faces declining revenue, compressed gross margins, ongoing operating losses and has not advanced to Phase B of DARPA’s Quantum Benchmarking Initiative.