Honeywell's Quantinuum valued at $17.6 billion as shares rise in Nasdaq debut

Shares of Quantinuum rose 13.3% in their Nasdaq debut, fetching a valuation of $17.63 billion as Honeywell's quantum computing company became the latest to benefit from robust investor demand.

The stock opened at $68, compared with its IPO price of $60. Breakthroughs in the fast-growing technology have spurred bets that quantum machines could eventually outperform conventional computers on ‌certain complex tasks. ⁠Quantinuum, like ⁠its rival IonQ, makes machines that hit trapped ions with lasers to perform quantum computations, where data can be either 1 or a 0, as with conventional computers, or both ​a 1 and a 0 at once.

"We, in working with our customers, now have a very clear view that quantum is not still years ​away. The commercialization has started - started small, but exhilarating," Quantinuum CEO Raj Hazra told Reuters in an interview. "We believe we are ready for public markets."


However, investors remain cautious about the industry's ability to generate sustainable commercial revenue in the near term. Sentiment in the sector has also been buoyed ​after the U.S. government last month announced a $2 billion initiative to take equity stakes in ⁠nine quantum ‌computing companies, including a planned $100 million investment in Quantinuum.

"The investment case is centered on the long-term potential of quantum ​computing and its potential ​role in future computing infrastructure," IPOX Schuster analyst Kat Liu said. "The support is meaningful because quantum computing is ⁠increasingly viewed as a strategic technology with implications for national security, AI, communications and advanced ​computing."

The sector has also drawn investor interest as increasingly sophisticated and resource-intensive AI systems fuel expectations ​that demand for quantum computers could eventually gain traction.

As of Wednesday's close, shares of peer IonQ have surged about 52% this year, giving the company a market value of about $25.47 billion, according to LSEG data. The Broomfield, Colorado-based company raised $1.68 billion in an upsized IPO by selling 28 million shares at $60 each, above its marketed range of $53 to $55 per share. The company earlier this week raised the number of shares on sale to 26.5 million.

The debut comes as the U.S. new listings market regains impetus, although investor appetite remains concentrated in technology and other ‌high-growth sectors.

ADOPTION STILL FACES CHALLENGES

Founded in 2021 through the merger of quantum computing operations of Honeywell and software specialist Cambridge Quantum, Quantinuum develops quantum hardware and software systems designed to solve complex computational problems.

"Quantinuum also benefits from Honeywell's backing ​and has expanded beyond ​hardware into software, cybersecurity, and quantum networking ⁠applications. Commercial adoption remains limited, but investors are primarily buying into the long-term opportunity," Liu said.

Honeywell will own about 48.1% of the combined voting power in the company upon completion of the offering, Quantinuum said in a regulatory filing.

Still, Quantinuum's commercial revenue remains highly concentrated.

Japan's RIKEN research ​institute accounted for roughly 60% of the company's 2025 revenue, highlighting the industry's continued reliance on government and research spending.

For full-year 2025, Quantinuum had sales of $30.9 million and a net loss of $192.6 million.

Edward Best, a partner at Willkie Farr & Gallagher, said investors should monitor whether the company broadens its customer base and increases the number and value of commercial contracts over time.

The industry also continues to grapple with high development costs, technological complexity and an uncertain timeline for widespread commercial adoption.

J.P. Morgan and Morgan Stanley were the lead active book-running managers for the offering.