Shares of IONQ Inc. (NYSE: IONQ) are soaring 9.81% in intraday trading on Thursday, as investors respond positively to the company's impressive first-quarter earnings report and ambitious plans for a space-based quantum key distribution network.

The quantum computing company reported better-than-expected financial results for Q1 2025, with revenue of $7.57 million slightly surpassing analysts' estimates of $7.51 million. IONQ's loss per share narrowed to $0.14, beating the expected loss of $0.20 per share. This performance marks a significant improvement from the same quarter last year.

Adding to the positive sentiment, IONQ unveiled plans to launch a global space-to-space and space-to-ground satellite quantum key distribution (QKD) network. This initiative includes the acquisition of Capella Space Corporation, positioning IONQ to potentially become the first company with both a quantum network and quantum computer in space. The company also provided an optimistic outlook for Q2, projecting revenue between $16 million and $18 million, while reiterating its full-year 2025 revenue guidance of $75 million to $95 million.

Analysts have responded favorably to these developments. While Needham slightly reduced its price target from $54 to $50, it maintained a Buy rating on IONQ. Similarly, Morgan Stanley raised its target price to $30 from $29, and Craig-Hallum reiterated a Buy rating with a $45 price target. These positive analyst actions further contribute to the stock's impressive performance today.