Quantum computing stocks benefited from huge success in 2025. Over the past year, startups in this industry, such as Rigetti Computing and D-wave quantumrose more than 600%.
Even Google-father Alphabet increased almost 90%. While its success may have had more to do with artificial intelligence (AI), its Willow chip keeps it at the forefront of the quantum industry.
However, in 2026, it may surprise investors that International business machines (NYSE: IBM) has a strong chance of becoming the quantum computing stock of 2026, and here’s why.
Image source: Getty Images.
Admittedly, many investors reading this might have written off IBM a long time ago. The stock suffered throughout the 2010s as its legacy technology businesses stopped growing.
Current CEO Arvind Krishna has recently breathed new life into the company by pivoting toward cloud and artificial intelligence, but even then, it may surprise investors to learn that much of his attention has also been focused on quantum computing.
The company first provided public access to a quantum computer via the cloud in 2016. While it was a more experimental machine, it built its first commercially viable quantum computer in 2019, when it launched the IBM Q System One.
Advancements have continued since then, and in November, the company announced the IBM Quantum Nighthawk. The 120-qubit computer can also run circuits with 30% more complexity while keeping error rates low.
Furthermore, by the end of 2026, it promises to offer a quantum advantage, which can solve problems better than exclusively 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, an issue that has long challenged the quantum industry.
Another attribute that makes IBM stock a quantum-related success is its stability and return to financial growth.
In the first nine months of 2025, its revenue of nearly $48 billion grew 6% compared to the same period a year ago. This may not compare to the growth rate of some of the startups, and quantum computing enthusiasts probably won’t like that the technology is still not mentioned in the earnings report. Still, IBM has something many of them don’t: profits.
During the same period, IBM earned nearly $5 billion in net income, a 61% increase from the previous year’s level, although gains on current transactions and investments drove most of the increase.
Still, those improvements have sent IBM shares up nearly 35% over the past year.
Furthermore, while its P/E ratio of 36 is not cheap, it stands out for having an earnings multiple, which is not the case with most of its quant competitors. Additionally, the price-to-sales (P/S) ratio of just over 4 is a comparative bargain relative to startups with triple-digit P/S ratios. By comparison, its emerging competitors could easily fall if investors start questioning those sales multiples.
IBM PS Ratio data by YCharts.
IBM even compares well to Alphabet, and not just because parent Google’s P/S ratio of 10 makes it more expensive. Alphabet’s market cap of $3.8 trillion presumably means another doubling of the stock price would take it to $7.6 trillion. Considering only one company has ever had a market capitalization over $5 trillion, investors should expect some resistance to its growth.
In fact, IBM’s market cap of $285 billion makes it a megacap. Still, given that it’s only a small fraction of the size of its parent, its stock should move full steam ahead as its cloud, artificial intelligence and, eventually, quantum computing companies prosper.
By 2026, the quantum computing stock most likely to succeed is IBM stock.
Admittedly, it lacks the size of Alphabet and the rapid growth potential of its emerging competitors. Investors should also remember that quantum computing remains an unknown and likely small part of IBM’s revenue, as evidenced by the lack of coverage in the earnings report. That likely means technology is more likely to contribute rather than be the main driver of IBM stock in 2026.
However, Alphabet faces a similar challenge with quantum computing, and its enormous size could have a chilling effect on 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 may create resistance to further near-term growth or even some selling.
By contrast, IBM continues to innovate in the quantum space, and its profitability likely means it can afford to keep innovating, something that may not be the case for money-losing startups. Considering it offers quantum advancements and financial strength, IBM appears well positioned for both industry leadership and stock price growth in 2026.
Before you buy International Business Machines stock, consider this:
He Varied and Dumb Stock Advisor The analyst team has just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines was not one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you would have $540,587!* Or when NVIDIA made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you would have $1,118,210!*
Now, it is worth noting stock advisor The total average return is 991.%: An overwhelming outperformance of the market compared to the S&P 500’s 195%. Don’t miss the latest Top 10 list, available with Stock Advisorand join an investing community created by individual investors for individual investors.
See the 10 actions »
*Stock Advisor returns from December 1, 2025
Will Healy has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Alphabet, International Business Machines, and IonQ. The Motley Fool has a disclosure policy.
Prediction: This Stock Will Be the Biggest Gainer in Quantum Computing in 2026 originally posted by The Motley Fool
