"IonQ's full-year 2024 revenue was $43.1 million. The company's market cap today is $16 billion. That's a price-to-sales multiple of roughly 142x. Not 14x. Not 42x. One hundred and forty-two times trailing revenue. To put that in context, if you owned a sandwich shop doing $43,000 a year in sales, this valuation would price your shop at $6 million."
"Here's where Q3 2025 gave bulls something real to work with. IonQ reported $39.87 million in revenue against a consensus estimate of $26.99 million. That's a 47% beat, and it pushed the company to raise full-year 2025 guidance to $106 million to $110 million. Year-over-year revenue growth came in at 221.5%."
"But the stock is down 28.6% year-to-date and has fallen nearly 40% since the Q3 filing date. That tells you something important: even a massive beat wasn't enough to hold the stock. The market wanted more than a quarter. It wanted a pattern."
IonQ trades at an extreme valuation of 142x trailing revenue based on $43.1 million in 2024 revenue against a $16 billion market cap. The bull case rests on IonQ being a transformational platform company in quantum computing's early stages, not a mature business. Q3 2025 provided validation with $39.87 million in revenue, a 47% beat versus $26.99 million consensus, and 221.5% year-over-year growth. Management raised full-year 2025 guidance to $106-$110 million. However, the stock declined 28.6% year-to-date and nearly 40% since Q3 filing, indicating the market demands sustained growth patterns rather than isolated beats. Q4 earnings represent a critical opportunity to establish consistent revenue acceleration and justify the premium valuation.
Read at 24/7 Wall St.
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