3 Things You Need to Know Before Buying IonQ Stock

IonQ (NYSE: IONQ) is one of the leading quantum computing stocks that's likely at the top of the buy list for many tech investors.

The stock has returned an impressive 137% over the past three years -- compared to the S&P 500's (SNPINDEX: ^GSPC) 72% gains. But it's been in decline over the past year as investors have fled higher-risk, unprofitable companies in search of fast-growing, profitable companies.

If you're considering buying IonQ stock right now, here are three things you should know.

Image source: The Motley Fool.

1. IonQ has impressive revenue growth, but it comes with a catch

IonQ recently reported its second-quarter 2026 results, with sales rising 287% to $80.1 million. Part of that growth was fueled by a series of acquisitions the company made over the past year or so, with the rest coming from organic growth in quantum revenue.

There's nothing wrong with some revenue increases coming from acquisitions, but if a company relies too heavily on increasing sales through acquisitions, it can be a red flag for investors.

IonQ's management estimates that the company's organic revenue will double for the full calendar year 2026. That will help IonQ's total sales -- including from acquisitions and organic growth -- reach an estimated $455 million this year, a massive 60% increase over the company's previous guidance.

Still, the company recently raised its full-year revenue guidance just after IonQ completed its purchase of SkyWater Technology, a chip foundry business, on July 31. That means that without the purchase, IonQ's revenue growth estimates for the year look a lot less impressive.

2. Spending is increasing, and losses are widening

Another concern for potential investors is that IonQ's spending continues to increase, and its losses are widening rapidly.

IonQ's non-GAAP (adjusted) EBITDA loss was $120.3 million in the second quarter, far higher than its loss of $36.5 million in the year-ago quarter.

The main culprits behind the expanding losses are IonQ's expensive research and development costs and rising sales and general administrative costs. While some spending increases are typical for high-growth companies, the problem is that IonQ's losses are far bigger than its revenue.

IonQ's Q2 sales of $80.1 million didn't come close to offsetting its losses and it's unclear when the company will be able to close the gap.

It's worth mentioning that IonQ has a strong cash position, despite not being profitable. The company has cash and cash equivalents of $3 billion, which gives it plenty of runway to keep the company up and running for a while.

3. You'll pay a premium for its shares

Even with its share price declining about 42% over the past year, IonQ's stock isn't anywhere near cheap. Its stock has a price-to-sales (P/S) ratio of 51 right now, far more expensive than the tech sector average P/S ratio of about 7.

It's not unusual for high-growth stocks to be expensive, but IonQ doesn't exactly fit the description. IonQ's revenue is still getting a significant boost from acquisitions, not from organic quantum computing sales. What's more, its spending is accelerating, losses are widening, and its gross margins are falling.

All of this comes at a time when investors are increasingly impatient with tech companies that are spending a lot of money but aren't profitable. I think they're right to be skeptical right now, and I doubt this sentiment will change any time soon.

If the recent pullback in AI stocks is any indicator, quantum computing companies like IonQ have their work cut out for them in convincing investors that profits are around the corner. If some AI companies are struggling with profitability right now -- despite the massive popularity of AI -- it will be exponentially harder for quantum computing companies to achieve the same goal with their nascent technology.

All of which means that paying a premium for IonQ shares right now doesn't make much sense.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.