IonQ draws mixed reactions from analysts following Q2 results

The quantum computing company IonQ (NYSE:IONQ) received mixed reactions from investment firms following its second quarter financial results.

Shares declined 3% by early afternoon trading on Thursday.

“IonQ raised its FY25 revenue guide to $82-100MM (vs. prior guidance of $75-95MM),” said Needham analysts, led by N. Quinn Bolton, in a Thursday investor note. “We believe the upside is being driven by two projects at existing customers across quantum computing and networking applications. While management increased revenue, they are also raising their EBITDA loss to reflect increased hiring and the pending acquisition of Oxford Ionics.”

Needham reiterated its Buy rating and $60 price target as it considers the company one of the leaders in the quantum computing industry.

Benchmark Equity Research also reiterated its Buy rating and $55 price target.

“The company is seeing growing demand from sovereign nations for both ground and space-based quantum networking and computing solutions, positioning IonQ as a uniquely capable provider,” said Benchmark analyst David Willismas, in a note. “We think management’s multi-faceted approach to building a comprehensive quantum ecosystem will enable the company to capture greater share of the quantum technology value chain longer term while also capitalizing on nearer term compute and networking opportunities.”

However, D.A. Davidson downgraded IonQ to Neutral from Buy while maintaining its $35 price target on the stock.

“Having greater clarity on the path to getting to their medium-to-long term goals and a concrete timeline for getting there we believe is required,” said D.A. Davidson analyst Alexander Platt in an investor note. “We would note that IonQ is building a holistic quantum platform with foundational pillars in computing, networking, and sensing, though we remain cautious around the company’s recent acquisitive nature and its unclear implications on both growth and profitability.”

Competitor D-Wave Quantum (QBTS) was up 0.3%, Rigetti Computing (RGTI) was down 2.5% and Quantum Computing (QUBT) inched down 1%.