A short squeeze is helping IONQ dig out of early 2026 losses
IonQ Inc (NYSE:IONQ) stock is 20.9% higher to trade at $38.76, on track for its best single-session gain since May 22. The quantum computing maven reported fourth-quarter revenue of $61.9 million far exceeding the $40.4 million estimates. The impressive revenue complimented a Q4 earnings beat of $1.93, significantly above the anticipated loss of $0.48.
CEO Niccolo de Masi said the quantum pure play is "at an inflection point." The sector leader is also lending a boost to D-Wave Quantum (QBTS) and Rigetti Computing (RGTI) -- both up 6.3% and 5.5%, respectively.
Despite the report, six brokerages trimmed their price targets, including J.P. Morgan Securities to $42 from $47. IonQ stock is still down 8% in 2026, but has support in place at $30.
A short squeeze could help sustain the rally. Short interest is up 7.6% in the most recent reporting period, and the 79.28 million shares sold short account for 22.7% of the stock's total available float.
Options traders have been betting bearishly. IONQ's 10-day put/call volume ratio of 1.74 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits higher than 79 % of other readings from the past year.
Today though, 66,000 calls have changed hands in the first hour of trading -- volume that's eight times the average intraday amount and almost double the number of puts exchanged. The March 50 call is the most popular, with new positions being bought to open here.