Shares of Rigetti Computing, Inc. (RGTI) rallied on Monday, rising as much as 11.9% in morning trading after the company announced a strategic partnership with Hewlett Packard Enterprise and the Pittsburgh Supercomputing Center.

The initiative, called TangleLab, is a hybrid quantum-classical supercomputing testbed backed by $5 million in funding from the National Science Foundation. Rigetti’s stock reached an intraday high of $15.97 before modest profit-taking reduced part of the advance.

Under the terms of the arrangement, Rigetti will supply its 9-qubit Novera quantum processing unit to the Pittsburgh Supercomputing Center, or PSC. The quantum processor is expected to be integrated with traditional high-performance computing infrastructure. Hybrid quantum-classical systems are designed to let researchers test how quantum processors can work alongside conventional supercomputers, an area still in early development as the industry looks for practical uses beyond standalone demonstrations. Development is scheduled to begin on September 1, 2026, with full operational deployment anticipated in 2027.

The announcement adds to Rigetti’s existing collaboration with Hewlett Packard Enterprise, which expanded its quantum-HPC alliance portfolio during its Discover 2026 conference in June.

Rigetti reported $4.4 million in revenue for the first quarter of 2026 and spent $19.9 million on research and development during the same period. The company said it holds cash and short-term investments totaling $569 million.

Second-Quarter Results Due August 6

Rigetti is scheduled to report its second quarter 2026 financial results on August 6. Analysts expect revenue of about $5.09 million, compared with $1.80 million in the same period a year earlier.

Analysts covering the stock maintain a Buy rating, with a consensus price target of $31.60, which is above current trading levels.

Even with those projections, Rigetti’s path to profitability remains a longer-term issue. Its current revenue base remains well below the pace of its research and development spending, while the potential for shareholder dilution remains as the company continues to rely on government contracts and performance-based milestone payments to support operations. Investors will also be watching the company’s cash position, research spending, and contract timing when the second-quarter report is released.

Government Funding and International Contracts

In May, Rigetti entered into a letter of intent with the U.S. Department of Commerce that could provide up to $100 million in federal funding over a three-year period. The agreement also includes provisions that would allow the U.S. government to take an equity position in the company.

Rigetti also has an $8.4 million contract with India’s Centre for Development of Advanced Computing, with delivery expected in the second half of 2026.

For longer-term development, the company has outlined plans to deploy a U.K.-based quantum system with more than 1,000 qubits within three to four years. If carried out on schedule, that deployment would mark a significant technical milestone for the company.

RGTI shares traded near $56 in October. Despite Monday’s move higher, the stock remains well below that level, with recent trading around the $14 to $15 range.

Broader equity market conditions were also positive on Monday. The S&P 500 rose 0.7%, the Dow Jones Industrial Average gained 1.1%, and the Nasdaq Composite advanced 0.7%, creating a supportive backdrop for quantum computing-related stocks.

Rigetti’s cloud-based quantum computing service is currently available through Microsoft Azure. The service remains in an early stage and has not yet produced substantial recurring revenue streams.