Skip to content
    IONQ
    Earnings call· Mar 2026(Q1 FY26)

    IonQ Q1 FY26 earnings call IONQ

    May 6, 2026 Source

    Executive summary

    IonQ Q1 FY26 — Record Revenue and Accelerated Quantum Roadmap

    IonQ delivered a record-breaking Q1 FY26, driven by strong commercial and international demand for its quantum platform. The company presold its first 256-qubit system and advanced its roadmap, while also raising full-year revenue guidance. Significant R&D investment continues to accelerate technical leadership and expand its merchant supplier capabilities, positioning it for future growth and market leadership.

    Highlights

    5
    • GAAP revenue reached $64.7 million, marking more than 8x year-over-year growth.

    • Full-year revenue guidance was raised to between $260 million and $270 million.

    • Remaining Performance Obligations (RPOs) grew 554% year-over-year to $470 million.

    • Approximately 60% of revenue came from commercial customers, with 35% from international markets and over one-third from multiproduct sales.

    • The first chip-based 256-qubit system was presold, with commissioning expected by the end of Q2 2027.

    Concerns

    3
    • Adjusted EBITDA recorded a loss of $96.8 million for the quarter.

    • GAAP R&D expenses grew 215% year-over-year to $125.7 million.

    • Adjusted EBITDA included approximately $12 million of expenses related to the commercial agreement with SkyWater.

    Guidance & targets

    4
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $260 million to $270 million
    high materiality
    High
    Full-year 2026 Organic Revenue Growth
    100%
    high materiality
    High
    Q2 2026 Revenue
    $65 million to $68 million
    medium materiality
    High
    Full-year 2026 Adjusted EBITDA
    negative $310 million to negative $330 million
    high materiality
    High

    Operational metrics

    13
    GAAP Revenue
    $64.7 million755% year-on-year growth
    Q1 FY26

    Reported as the strongest quarter in company history and third straight quarter of record-setting revenue growth.

    Commercial Revenue Mix
    60%similar to full year 2025
    Q1 FY26

    Approximately 60% of revenue came from commercial customers, indicating firm entry into commercialization of quantum technologies.

    International Revenue Mix
    35%
    Q1 FY26

    Approximately 35% of revenue came from international markets, with sales in over 30 countries compared to a few a year ago.

    Multiproduct Sales Revenue Mix
    over 1/3
    Q1 FY26

    Over one-third of revenue came from customers who bought more than one product (e.g., computing, networking, sensing, security).

    GAAP R&D
    $125.7 million215% year-over-year growth
    Q1 FY26

    R&D remains the biggest investment area, focused on accelerating innovation and delivering powerful quantum computing solutions.

    Adjusted EBITDA Loss
    $96.8 million
    Q1 FY26

    Reported adjusted EBITDA loss for the first quarter.

    Adjusted EBITDA Loss (ex-SkyWater expenses)
    $85 million
    Q1 FY26

    Adjusted EBITDA loss excluding approximately $12 million of expenses related to the commercial agreement with SkyWater.

    Cash and investments balance
    $3.1 billion
    as of March 31, 2026

    Cash, cash equivalents, and investments balance, providing financial firepower for R&D, product development, and acquisitions.

    Manufacturing Capacity (Tempo)
    more than doubled
    Q1 FY26

    Manufacturing capacity for Tempo (5th generation system) has been more than doubled to meet demand.

    GAAP Net Income
    $805.4 million
    Q1 FY26

    Mainly due to an approximately $1.1 billion mark-to-market warrant valuation, which is a non-cash item.

    Countries with Customers
    over 30compared to a few a year ago
    Q1 FY26

    IonQ has now sold solutions in over 30 countries, demonstrating global demand.

    RPO to Revenue Ratio
    $2.5
    Q1 FY26

    For every $1 of revenue recognized in Q1, roughly $2.5 in RPOs were added, serving as a proxy for backlog.

    Qubit System Generations
    current and future

    IonQ is deploying its fifth-generation Tempo system, well on its way to the 256-qubit sixth generation, and starting to focus on the seventh generation 10,000-qubit solution.

    Industry KPIs

    2
    MetricValueDetails
    Gross margin driversdown 600 bpsbps
    Revenue mix by end market segment60% commercial / 35% international%

    Orderbook & backlog

    1
    Remaining Performance Obligations (RPOs)$470 millionMarch 31, 2026

    554% year-over-year growth

    Compared to approximately $72 million a year ago. RPOs turn into revenue as performance obligations are met and are replenished with TCV from new sales.

    Product announcements

    1
    ProductTypeDetails
    Persistent change monitoring intelligence from spacelaunch

    Deals & partnerships

    7
    SkyWaterIntent to acquire SkyWater to accelerate the U.S. quantum industry and deepen merchant supplier commitment.

    The transaction is subject to customary regulatory approvals. Commercial collaboration has already yielded multiple test iterations for the 256-qubit chip, with first ion trap samples received and critical performance demonstrated.

    Welcome LEAP initiative (U.K.)Applying quantum optimization to improve cancer research.

    Introduces new computational approaches for reconstructing difficult regions of DNA often missed by existing methods, potentially forming a foundation for future studies of genetic changes in human disease.

    CCRMWork on cell and gene therapies for cancer and immune system rebuilding.

    Includes optimization of mRNA sequences delivered into cells, with long-term anticipation of personalized medicine acceleration.

    State of FloridaNew statewide Quantum networking initiative.

    A phased contract to connect a limited geography initially, with ambitions for statewide expansion, driven by the need to secure critical infrastructure as Q-Day approaches.

    University of MarylandFirst commercial sale of a quantum memory node into the Mid-Atlantic regional Quantum Internet.

    Underscores IonQ's central role in developing secure national quantum infrastructure.

    DARPA's HARC programContract to advance next-generation space communications.$39 million

    IonQ is playing a critical role in enabling a new class of networked quantum computers that can combine multiple qubit types into an interconnected high-performance architecture.

    Missile Defense AgencySpot on the Shield contract.

    Focused on the rapid delivery of innovative capabilities to the warfighter with increased speed and agility.

    Risks & headwinds

    1
    Q-Day timeline compression (RSA encryption obsolescence)2028-2029

    Expected in 2028-2029 window for RSA 2048 encryption.

    Mitigation: IonQ is providing mature, field-deployable hardware and software cybersecurity solutions to enhance cybersecurity today and ensure protection in the age of quantum ubiquity. IonQ's deep understanding of offensive quantum capabilities informs superior defensive solutions.

    What to watch in Q2 FY26

    5

    SkyWater acquisition closing

    Q2 or Q3 2026
    CurrentIntent announced, commercial collaboration underway
    TargetTransaction closed

    Why it matters

    The acquisition is expected to accelerate IonQ's commercialization of fault-tolerant quantum computers and secure the scalability of the U.S. quantum market.

    As most listeners know, in January of 2026, we announced our intent to acquire SkyWater, in order to accelerate the U.S. quantum industry and deepen our commitment as a merchant supplier. We expect the transaction to close in the second or third quarter of 2026, subject to customary regulatory approvals.

    Q&A highlights

    7

    Can you discuss the likely delivery schedule and revenue implications for the 256-qubit systems, given you have multiple customers?

    Demand for both the current Tempo (5th-gen) and the upcoming 256-qubit systems is very strong, with more customer wins expected. The focus is on delivering 2026 guidance, driven significantly by Tempo, while preparing for 256-qubit systems to contribute in 2027 and beyond. Customers are making multi-year platform commitments.

    The demand that we're seeing is actually for many more customers that I can share today. You mentioned if you a few important, but as I look at the demand for our fifth generation machine, and in fact, customers will look at it and say, well, we might also want to look at your next and your [indiscernible]. That remains very, very strong.

    asked by John McPeake · answered by Niccolo de Masi

    2 min read6 chapters

    Detailed Narrative

    01

    Quantum Technology Leadership and Benchmarks

    IonQ is establishing itself as a leader in the quantum technology market, defining both hardware and software ecosystems. The company recently released third-party validated benchmarks demonstrating significant performance advantages, including up to 10,000x faster time to solution on key quantum algorithms. Notably, the Quantum Fourier Transform, critical for cryptography and drug discovery, showed a 1,000x speed improvement, underscoring IonQ's fidelity and connectivity advantages.

    02

    Advancements in 256-Qubit Systems and Fault Tolerance

    IonQ has presold its first chip-based 256-qubit system, with customer commissioning anticipated by the end of Q2 2027. The company also published its 'walking cat paper,' a comprehensive architectural blueprint for achieving fully fault-tolerant quantum computing by 2030. This detailed roadmap outlines how IonQ plans to scale to millions of physical qubits with logical error rates as low as 1 in 1 trillion, leveraging its demonstrated 99.99% 2-qubit fidelity and reliable ion transport.

    03

    SkyWater Acquisition and Merchant Supplier Strategy

    IonQ announced its intent to acquire SkyWater, aiming to accelerate the U.S. quantum industry and enhance its position as a merchant supplier. The commercial collaboration with SkyWater has already yielded multiple test iterations for the 256-qubit chip, with initial ion trap samples demonstrating critical performance metrics. This acquisition is expected to close in Q2 or Q3 2026, further solidifying IonQ's role as a leading quantum merchant supplier.

    04

    Real-World Quantum Applications and Partnerships

    The company has significantly expanded its quantum algorithm and applications team in response to strong demand. Recent partnerships include large-scale portfolio optimization with S&P 500 data in financial services, accelerated computer-aided engineering with Synopsis, and logistics optimization for electric and autonomous freight with Ion Ride. IonQ is also collaborating with Quantum Basel to optimize large language models and reduce energy consumption, demonstrating significant energy savings for shallow circuits.

    05

    Expanding Quantum Networking and Federal Engagements

    IonQ continues to expand its quantum networking footprint, having deployed Poland's first national quantum communications network, one of Europe's largest terrestrial quantum key distribution networks. Domestically, it announced a new statewide quantum networking initiative in Florida and the first commercial sale of a quantum memory node into the Mid-Atlantic regional Quantum Internet. The company also secured a $39 million contract for next-generation space communications on DARPA's HARC program, highlighting its critical role in national security infrastructure.

    06

    Q-Day Timeline and Post-Quantum Security Solutions

    IonQ reiterates its expectation for 'Q-Day,' the point at which quantum systems can break current RSA encryption, to occur in the 2028-2029 timeframe, aligning with recent updates from other industry leaders. The company views providing post-quantum security solutions as a strategic responsibility, leveraging its deep understanding of advanced quantum systems to build superior defenses and ensure national protection in the age of quantum ubiquity.

    AI-generated summary of the company’s earnings call. Not investment advice.