Quantinuum shares jump 13.3% in their Nasdaq debut, valuing the Honeywell-backed quantum firm at $17.6 billion.

Synopsis Quantinuum shares jump 13.3% in their Nasdaq debut, valuing the Honeywell-backed quantum firm at $17.6 billion. Strong investor interest reflects optimism around quantum computing’s long-term potential, despite limited revenues and ongoing losses. The company raised $1.68 billion, though adoption challenges and revenue concentration remain key concerns for investors. Shares of Quantinuum rose 13.3% in their Nasdaq debut, fetching a valuation of $17.63 billion as Honeywell's quantum computing company became the latest to benefit from robust investor demand. The stock opened at $68, compared with its IPO price of $60. Breakthroughs in the fast-growing technology have spurred bets that quantum machines could eventually outperform conventional computers on ‌certain complex tasks. ⁠Quantinuum, like ⁠its rival IonQ, makes machines that hit trapped ions with lasers to perform quantum computations, where data can be either 1 or a 0, as with conventional computers, or both a 1 and a 0 at once. S&P 500 Top Gainers Texas Pacific Land406.76(9.69%) Moderna49.06(7.49%) Incyte97.98(6.22%) United Rentals1,057(6.21%) S&P 500 Top Losers Coterra Energy32.56(-8.62%) Global Payments67.85(-8.35%) Charter Communications129.01(-8.03%) ServiceNow117.90(-7.64%) "We, in working with our customers, now have a very clear view that quantum is not still years away. The commercialization has started - started small, but exhilarating," Quantinuum CEO Raj Hazra told Reuters in an interview. "We believe we are ready for public markets." However, investors remain cautious about the industry's ability to generate sustainable commercial revenue in the near term. Sentiment in the sector has also been buoyed after the U.S. government last month announced a $2 billion initiative to take equity stakes in ⁠nine quantum ‌computing companies, including a planned $100 million investment in Quantinuum. "The investment case is centered on the long-term potential of quantum computing and its potential role in future computing infrastructure," IPOX Schuster analyst Kat Liu said. "The support is meaningful because quantum computing is ⁠increasingly viewed as a strategic technology with implications for national security, AI, communications and advanced computing." Live Events The sector has also drawn investor interest as increasingly sophisticated and resource-intensive AI systems fuel expectations that demand for quantum computers could eventually gain traction. As of Wednesday's close, shares of peer IonQ have surged about 52% this year, giving the company a market value of about $25.47 billion, according to LSEG data. The Broomfield, Colorado-based company raised $1.68 billion in an upsized IPO by selling 28 million shares at $60 each, above its marketed range of $53 to $55 per share. The company earlier this week raised the number of shares on sale to 26.5 million. The debut comes as the U.S. new listings market regains impetus, although investor appetite remains concentrated in technology and other ‌high-growth sectors. ADOPTION STILL FACES CHALLENGES Founded in 2021 through the merger of quantum computing operations of Honeywell and software specialist Cambridge Quantum, Quantinuum develops quantum hardware and software systems designed to solve complex computational problems. "Quantinuum also benefits from Honeywell's backing and has expanded beyond hardware into software, cybersecurity, and quantum networking ⁠applications. Commercial adoption remains limited, but investors are primarily buying into the long-term opportunity," Liu said. Honeywell will own about 48.1% of the combined voting power in the company upon completion of the offering, Quantinuum said in a regulatory filing. Still, Quantinuum's commercial revenue remains highly concentrated. Japan's RIKEN research institute accounted for roughly 60% of the company's 2025 revenue, highlighting the industry's continued reliance on government and research spending. For full-year 2025, Quantinuum had sales of $30.9 million and a net loss of $192.6 million. Edward Best, a partner at Willkie Farr & Gallagher, said investors should monitor whether the company broadens its customer base and increases the number and value of commercial contracts over time. The industry also continues to grapple with high development costs, technological complexity and an uncertain timeline for widespread commercial adoption. J.P. Morgan and Morgan Stanley were the lead active book-running managers for the offering. (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless (You can now subscribe to our ETMarkets WhatsApp channel) (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price ...moreless Can a cousin be an ‘independent’ director? Sebi clarifies Melting mountains: Can India defuse 189 looming flood risks in Himalayas? Is Air India the cocktail turning bitter for Tatas? An unusual skill shortage that’s stalling govt’s PNG push As fraud cases rise, are banks doing enough to stop them? These large-caps have ‘strong buy’ & ‘buy’ recos and an upside potential of up to 26% 1 2 3

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