D-Wave QuantumQBTS +3.88%64 Gross Margin % is 63.61% as of Mar. 2026, which is 6% below its 10-year median of 67.58. GuruFocus rates QBTS with a GF Score™ of 64/100 and a GF Value™ of $2.45 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,450 Hardware companies, D-Wave Quantum ranks better than 96.08% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
D-Wave Quantum had a gross margin of 63.61% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
D-Wave Quantum Gross Margin % Related Terms
D-Wave Quantum Gross Margin % Historical Data
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The historical data trend for D-Wave Quantum's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
QBTS vs RGTI, QUBT, BRAI: Gross Margin % Comparison
For the Computer Hardware subindustry, D-Wave Quantum's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
D-Wave Quantum Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, D-Wave Quantum's Gross Margin % distribution charts can be found below:
* The bar in red indicates where D-Wave Quantum's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
D-Wave Quantum (QBTS) has a Gross Margin % of 63.61% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on D-Wave Quantum and its competitors. This is near median its historical median of 67.58. Over the past decade, D-Wave Quantum's Gross Margin % has ranged from 52.77 to 82.59. According to the industry distribution chart, D-Wave Quantum ranks #96 out of 2450 companies in the Hardware industry, placing it in the top 3.9%.
Is D-Wave Quantum's Gross Margin % too high?
D-Wave Quantum's current Gross Margin % of 63.61% is near median its 10-year median of 67.58. Over the past 10 years, this metric has ranged from a low of 52.77 to a high of 82.59. The Hardware industry median Gross Margin % is 24.53. D-Wave Quantum's value of 63.61% is 159.3% above this industry median. Based on the distribution chart, D-Wave Quantum ranks #96 out of 2450 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, D-Wave Quantum has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does D-Wave Quantum's Gross Margin % compare to RGTI and QUBT?
According to the Hardware industry distribution chart, D-Wave Quantum ranks #96 out of 2450 companies for Gross Margin %. This places D-Wave Quantum in the top 4% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. D-Wave Quantum's value of 63.61% is 159.3% above this benchmark. Historically, D-Wave Quantum's own Gross Margin % has ranged from 52.77 to 82.59 over the past decade. While the company's 10-year median is 67.58 vs. the industry median of 24.53, D-Wave Quantum has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. D-Wave Quantum's current Gross Margin % of 63.61% is 159.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on D-Wave Quantum and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. D-Wave Quantum's current Gross Margin % is 63.61%, which is near median its own 10-year median of 67.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is D-Wave Quantum stock overvalued right now?
Based on GuruFocus' analysis, D-Wave Quantum (QBTS) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.45, compared to a current price of $22.76 — trading 829% above its estimated fair value. The current Gross Margin % is 63.61%, which is near median its 10-year median of 67.58 and 159.3% above the Hardware industry median of 24.53. D-Wave Quantum's overall GF Score™ is 64/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For D-Wave Quantum (QBTS), the current Gross Margin % is 63.61% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is D-Wave Quantum (QBTS) Overvalued in 2026?
Based on GuruFocus' analysis, D-Wave Quantum stock appears to be overvalued.
The current stock price of $22.76 is trading 829% above its estimated GF Value™ of $2.45.
GuruFocus considers D-Wave Quantum to be Significantly Overvalued.
Key valuation signals for QBTS:
Gross Margin %: 63.61% (near median its 10-year median of 67.58)
GF Value™: $2.45 vs. price of $22.76 (829% above fair value)
Industry Position: 159.3% above the Hardware median (#96 of 2450)
No single metric tells the full story. See the QBTS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
D-Wave Quantum Inc is in the development and delivery of quantum computing systems, software, and services, and it is the commercial supplier of quantum computers and the only company building both annealing quantum computers and gate-model quantum computers. It delivers customer value with practical quantum applications for problems as diverse as logistics, artificial intelligence, materials sciences, drug discovery, scheduling, cybersecurity, fault detection, and financial modeling. Its annealing quantum computers are accessible through the company's LeapTM cloud service.
64GF Score
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