Is D-Wave Quantum Stock Worth Buying Before Earnings?

D-Wave Quantum, trading under the ticker QBTS on the NYSE, emerged as one of the most exciting players in the quantum computing space throughout the previous year. Its stock price experienced a remarkable surge of 211%, capturing the attention of numerous investors eager to capitalize on the potential of this emerging technology. However, the beginning of 2026 has brought a stark contrast, with the shares declining by 25% as of February 13. This downturn has left many wondering about the company’s near-term prospects, particularly with its upcoming financial disclosures on the horizon.

The firm is scheduled to release its results for the fourth quarter and the entire fiscal year 2025 on February 26, prior to the opening of regular market trading hours. While it is a common strategy among traders to position themselves ahead of earnings announcements—especially for highly volatile equities like D-Wave Quantum—investors should approach this opportunity with a healthy dose of caution. The unpredictability of post-earnings stock reactions cannot be overstated, and banking on a favorable outcome this time around may not yield the desired results.

Historical performance provides a clear illustration of this volatility. Following the announcement of its first-quarter 2025 earnings, D-Wave’s stock climbed by 6% during the subsequent week. The same pattern held true after the second-quarter results, with another modest gain in the immediate aftermath. Yet, the response to the third-quarter report was dramatically different: shares tumbled by 18% over the following week. Notably, the third quarter itself was far from disappointing, boasting extraordinary growth figures including a 235% increase in revenue and a whopping 353% rise in gross profits compared to the prior year. Despite these impressive metrics, the market’s reaction was overwhelmingly negative, underscoring how external factors and investor sentiment can override fundamental improvements.

The broader market environment adds further complexity to the decision of whether to invest in D-Wave Quantum at this juncture. Quantum computing stocks, as a niche within the technology sector, are currently navigating challenging waters. The technology industry at large is grappling with significant headwinds, primarily driven by escalating concerns over the enormous capital expenditures required for artificial intelligence initiatives. Major players across Wall Street are voicing worries about the sustainability of these massive investments, leading to a more cautious stance among investors. This shift toward risk aversion is particularly detrimental to speculative, unprofitable companies like D-Wave, which operate in a pre-revenue maturity stage and command premium valuations detached from current financial realities.

D-Wave Quantum exemplifies this high-risk profile perfectly. At present, its market capitalization stands at approximately $7.3 billion, yet it trades at more than 200 times its trailing sales—a multiple that reflects lofty expectations rather than grounded achievements. Compounding this issue is the company’s persistent unprofitability, evidenced by a staggering net loss of $313 million across the first three quarters of 2025 alone. Such financials raise legitimate questions about the sustainability of its current share price, especially in a market increasingly focused on fiscal discipline and tangible progress toward breakeven operations.

From a strategic investment perspective, pure-play quantum computing enterprises like D-Wave carry inherent uncertainties that make them less appealing in the current climate. Seasoned investors might find greater comfort in established technology giants that have diversified portfolios including quantum computing research divisions. Companies such as Alphabet, with its robust balance sheet and ongoing advancements in quantum technologies, offer exposure to this field without the extreme volatility and valuation risks associated with smaller, focused entities. Even after its recent price correction, D-Wave remains notably expensive relative to peers, and there is a reasonable case to be made that further downside could materialize throughout 2026 as market dynamics evolve.

Key financial indicators reinforce this cautious outlook. For instance, D-Wave’s gross margin sits at an impressive 82.82%, highlighting operational efficiencies in its core technology development. However, this strength is overshadowed by other metrics: its 52-week trading range spans from a low of $4.45 to a high of $46.75, illustrating extreme price swings. Recent trading volumes have been moderate at around 116,000 shares, compared to an average of 34 million, which could signal waning interest or consolidation ahead of the earnings release. The day’s range as of recent sessions hovered between $18.40 and $19.29, with the stock closing at $18.42 after a 6.36% decline.

Even if D-Wave delivers a robust earnings report—surpassing analyst expectations on revenue growth, customer adoption, or technological milestones—it may not be sufficient to reverse the prevailing bearish momentum. The stock’s trajectory in 2026 thus far suggests that broader sector pressures and macroeconomic factors are exerting a stronger influence than company-specific news. Investors contemplating a pre-earnings purchase should weigh these elements carefully, considering not only the potential upside from positive surprises but also the substantial risk of continued declines if results fail to meet the high bar set by its elevated valuation.

In summary, while D-Wave Quantum continues to push the boundaries of quantum annealing technology and has demonstrated periods of explosive growth, the combination of post-earnings unpredictability, an unfavorable market backdrop for speculative tech, and its own lofty multiples present compelling reasons for restraint. Those with a high tolerance for risk and a long-term conviction in quantum computing’s transformative potential might still see value, but for the average investor, waiting for clearer signs of profitability and market stabilization could prove wiser. The upcoming earnings will undoubtedly provide fresh insights, yet they are unlikely to alter the fundamental challenges facing the stock in the immediate term.