Quantinuum Shares Just Leapt 26%. Is the Stock Still a Buy?

Quantinuum (QNT) shares rocketed 26% on November 6 following the company's impressive bookings and upward revision of its full-year revenue guidance. Since going public in June at $60, the quantum computing stock has seen a 37% drop. Found in 2021 through the merger of Honeywell's quantum computing business and Cambridge Quantum, Quantinuum uses the trapped-ion approach, similar to IonQ, known for its accuracy.

Unlike IonQ, Quantinuum does not utilize embedded microwave antennas in its chips, which it claims can slow down the process. Quantinuum's Helios system recently reached a remarkable 99.995% logical fidelity in October, a level equivalent to 50 errors per million operations, positioning it for a fault-tolerant system by 2029. In addition, Quantinuum excels in quantum software, with its Nexus platform that combines quantum application development and deployment, and its TKET software development kit and Guppy language, which provides universal translation and advanced error correction.

The company has 215 organizations using Nexus, up nearly 20% sequentially, and announced a multi-generational roadmap for the platform. The company's Sol quantum system will launch in Q1 2027, with full commercial availability by the second half of 2027, promising the first commercial system with 100 logical qubits and a targeted error rate of 99.999%.

Quantinuum's strong order backlog, led by a large deal with Oracle, and increasing bookings, now at $104 million for the year, position the company well for 2027. Although the company continues to report losses, adjusted EPS was -$0.29 and EBITDA lost $80.5 million compared to a year ago loss of $45.3 million. With $1.9 billion in cash and no debt, Quantinuum's technological leadership and strong deal with Oracle make it a promising investment in the nascent quantum computing sector.