Quantum computing company IonQ (NYSE: IONQ) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 429% year on year to $61.89 million. The company’s full-year revenue guidance of $235 million at the midpoint came in 22% above analysts’ estimates. Its non-GAAP loss of $0.20 per share was 13% above analysts’ consensus estimates.

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Company Overview

Founded by quantum physics pioneers from the University of Maryland and Duke University in 2015, IonQ (NYSE: IONQ) develops quantum computers that process information using trapped ions to solve complex computational problems beyond the capabilities of traditional computers.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

With $130 million in revenue over the past 12 months, IonQ is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand.

As you can see below, IonQ grew its sales at an incredible 181% compounded annual growth rate over the last four years. This is an encouraging starting point for our analysis because it shows IonQ’s demand was higher than many business services companies.

We at StockStory place the most emphasis on long-term growth, but within business services, a stretched historical view may miss recent innovations or disruptive industry trends. IonQ’s annualized revenue growth of 143% over the last two years is below its four-year trend, but we still think the results suggest healthy demand.

This quarter, IonQ reported magnificent year-on-year revenue growth of 429%, and its $61.89 million of revenue beat Wall Street’s estimates by 53.2%.

Looking ahead, sell-side analysts expect revenue to grow 44.9% over the next 12 months, a deceleration versus the last two years. Still, this projection is healthy and implies the market is forecasting success for its products and services.

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Operating Margin

Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D.

IonQ’s high expenses have contributed to an average operating margin of negative 551% over the last five years. Unprofitable business services companies require extra attention because they could get caught swimming naked when the tide goes out.

On the plus side, IonQ’s operating margin rose over the last five years, as its sales growth gave it operating leverage. Still, it will take much more for the company to reach long-term profitability.

In Q4, IonQ generated a negative 369% operating margin.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

IonQ’s earnings losses deepened over the last four years as its EPS dropped 26.8% annually. We’ll keep a close eye on the company as diminishing earnings could imply changing secular trends and preferences.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For IonQ, EPS didn’t budge over the last two years, but at least that was better than its four-year trend. Given the merits in other parts of its business, we’re hopeful it can generate earnings growth in the coming years.

In Q4, IonQ reported adjusted EPS of negative $0.20, up from negative $0.34 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects IonQ to perform poorly. Analysts forecast its full-year EPS of negative $0.68 will tumble to negative $1.04.

Key Takeaways from IonQ’s Q4 Results

We were impressed by how significantly IonQ blew past analysts’ revenue expectations this quarter. We were also glad its full-year revenue guidance trumped Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 5.6% to $35.58 immediately following the results.

IonQ had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).