Quantum computing stocks have enjoyed huge success in 2025. Over the past year, start-ups in this sector, such as IT rejections And D-Wave Quantumincreased by more than 600%.
Even Google-parent Alphabet increased by almost 90%. While its success may have more to do with artificial intelligence (AI), its Willow chip keeps it at the forefront of the quantum industry.
However, in 2026, investors may be surprised to find that International work machines (NYSE:IBM) has a strong chance of becoming the quantum computing headline of 2026, and here’s why.
Image source: Getty Images.
Certainly, many investors reading this might have given up on IBM a long time ago. The stock suffered throughout the 2010s as its traditional technology businesses stopped growing.
Current CEO Arvind Krishna has recently breathed new life into the company by pivoting to cloud and AI, but even then, investors might be surprised to learn that much of his focus has also been on quantum computing.
The company first provided public access to a quantum computer via the cloud in 2016. Although a more experimental machine, it built its first commercially viable quantum computer in 2019 when IBM Q System One launched.
Progress has continued since then, and in November the company announced IBM Quantum Nighthawk. The 120-qubit computer can also run 30% more complex circuits while maintaining low error rates.
Moreover, by the end of 2026, it promises to offer a quantum advantage, capable of solving problems better than classical methods.
Additionally, it plans to deliver the first fault-tolerant quantum computer by 2029. This involves developing an architecture that can efficiently correct errors, a problem that has long posed a challenge to the quantum industry.
Another attribute that makes IBM stock a quantum success is its stability and return to financial growth.
In the first nine months of 2025, its revenue of nearly $48 billion increased 6% from the same period last year. That may not compare to the growth rate of some startups, and quantum computing enthusiasts probably won’t like that the technology isn’t yet mentioned in the earnings report. Yet IBM has something many of them don’t: profits.
During the same period, IBM reported net income of nearly $5.0 billion, an increase of 61% from last year, although gains in current transactions and investments accounted for most of the increase.
Still, these improvements have sent IBM stock up nearly 35% over the past year.
Additionally, while its P/E ratio of 36 isn’t cheap, it boasts an earnings multiple that most of its quantum competitors don’t. Additionally, the price-to-sales (P/S) ratio just above 4 is a good deal for startups with triple-digit P/S ratios. By comparison, its startup competitors could easily fall if investors start to question those sales multiples.
IBM PS Ratio data by YCharts.
IBM even compares well to Alphabet, and not just because Google’s parent company’s P/S ratio of 10 makes it more expensive. Alphabet’s market cap of $3.8 trillion likely means that a further doubling of the stock price would take it to $7.6 trillion. Given that a single company has a market capitalization greater than $5 trillion, investors should expect some resistance to its growth.
Indeed, IBM’s market capitalization of $285 billion makes it a megacap. Still, given that it’s only a small fraction of the size of its parent company, it should have a head start on its stock as its cloud, AI and, ultimately, quantum computing businesses thrive.
For 2026, the quantum computing stock most likely to succeed is IBM stock.
Certainly, it does not have the size of Alphabet and the rapid growth potential of its competing start-ups. Investors should also keep in mind that quantum computing remains an unknown and likely small portion of IBM’s revenue, as evidenced by the lack of coverage in the earnings report. This likely means technology is more likely to be a contributor rather than a main driver of IBM stock in 2026.
However, Alphabet faces a similar challenge with quantum computing, and its massive size could act as a deterrent to its future growth. Additionally, stocks like Rigetti and D-Wave Quantum have already achieved much of their growth in 2025, and a triple-digit P/S ratio could provide resistance to further near-term growth or even some selling.
In contrast, IBM continues to innovate in the quantum space, and its profitability likely means it can afford to continue innovating, which may not be the case for money-losing startups. Considering that it offers both quantum advancements and financial strength, IBM appears well positioned to deliver both industry leadership and stock price growth in 2026.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Alphabet, International Business Machines and IonQ. The Motley Fool has a disclosure policy.
Prediction: This Stock Will Be Quantum Computing’s Biggest Winner in 2026, originally published by The Motley Fool
