AI Takeaway
IonQ delivered explosive Q1 FY2026 revenue growth of +754.7% YoY to $64.7M, while reporting a remarkable $805.4M net income driven by non-operating gains, even as operating losses deepened to -$271.5M amid surging R&D investment.
Revenue
$64.67M
++754.72% YoY
EPS (Basic)
$2.19
++1664.29% YoY
Operating Income
$-271.51M
-258.76% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew from $7.6M to $64.7M YoY (+754.7%), signaling a dramatic acceleration in customer adoption of IonQ's quantum computing services and solutions. This growth reflects expanding commercial contracts and government partnerships.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating loss widened from -$75.7M to -$271.5M YoY (-258.8%), driven primarily by R&D expenses surging +214.7% to $125.7M. The company is aggressively investing in next-generation quantum hardware and software capabilities.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Net income reached $805.4M compared to a loss of -$32.3M in the prior year period, implying approximately $1.08B in non-operating gains (likely from fair value changes in warrants, convertible notes, or investment securities) that more than offset the operating loss.
Source: Source: 10-Q Income Statement & Balance Sheet (XBRL Financial Data)
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Upgrade to unlockOperating cash outflow deteriorated sharply to -$151.0M in Q1 FY2026 from -$33.0M in Q1 FY2025 (-357.3% YoY). While the balance sheet is currently well-capitalized, the accelerating cash burn rate raises questions about long-term sustainability if revenue growth does not continue to scale proportionally.
Source: Source: 10-Q Cash Flow Statement (XBRL Financial Data)
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Upgrade to unlockReported EPS of $-0.34 versus the $-0.36 analyst consensus — a +5.4% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $64.67M | $7.57M | +754.72% |
Operating Income | $-271.51M | $-75.68M | -258.76% |
Net Income | $805.36M | $-32.25M | +2597.09% |
EPS (Basic) | $2.19 | $-0.14 | +1664.29% |
EPS (Diluted) | $2.07 | $-0.14 | +1578.57% |
R&D Expense | $125.74M | $39.95M | +214.72% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $6.69B | $850.07M | +687.43% |
Current Assets | $2.3B | $636.98M | +261.53% |
Total Liabilities | $1.7B | $85.03M | +1904.11% |
Current Liabilities | $163.89M | $48.38M | +238.76% |
Stockholders' Equity | $4.98B | $765.05M | +550.41% |
Cash & Equivalents | $493.54M | $159.68M | +209.08% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $-151.02M | $-33.02M | -357.30% |
Investing Cash Flow | $-391.85M | $-230.18M | -70.24% |
Financing Cash Flow | $6.9M | $368.73M | -98.13% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | -419.8% | -1000.3% | +580.40% |
Net Margin | 1245.4% | — | — |
ROE | 16.2% | — | — |
ROA | 12.0% | — | — |
Current Ratio | $14.052 | — | — |
Debt to Equity | $0.342 | — | — |
IonQ's revenue grew an extraordinary +754.7% YoY to $64.7M in Q1 FY2026, up from just $7.6M in Q1 FY2025. This dramatic acceleration reflects rapid expansion in commercial and government quantum computing contracts, though the company is still in an early revenue-generation phase.
IonQ reported net income of $805.4M in Q1 FY2026 despite an operating loss of -$271.5M, because of an estimated ~$1.08B in non-operating gains — likely from fair value changes on warrants, convertible notes, or investment securities. These are non-cash, non-recurring items and do not reflect the profitability of IonQ's core quantum computing business.
Key risks include rapidly escalating operating cash burn (-$151M in Q1 FY2026 vs. -$33M prior year), a near 20-fold increase in total liabilities to $1.70B, and net income that is almost entirely dependent on volatile non-operating gains rather than core business performance. R&D spending of $125.7M also exceeds quarterly revenue of $64.7M, highlighting the pre-commercial nature of the business.
IonQ's near-term liquidity is very strong, with a current ratio of 14.05x, cash of $493.5M, and total current assets of $2.30B against only $163.9M in current liabilities — providing a substantial runway. However, the company burns significant cash operationally (-$151M in one quarter) and its long-term health depends on continued revenue scaling and access to capital markets.
The financial data strongly suggests a major capital raise occurred, as total assets surged from $850M to $6.69B (+687%) and stockholders' equity grew from $765M to $4.98B (+550%) YoY. Simultaneously, total liabilities jumped from $85M to $1.70B, indicating new debt or convertible instruments were also issued as part of the financing activity.