ChargePoint Holdings (CHPT) Stock Forecast & Price Target

ChargePoint Holdings Inc. has demonstrated a notable improvement in its non-GAAP gross profit margin, which increased to 30.1% from 25.9% on a sequential basis, largely due to enhanced hardware margins and robust growth in its subscription business. Management's positive outlook for margin expansion throughout FY26 indicates confidence in the company's revenue mix and cost efficiencies, particularly anticipated in the second half of the fiscal year. Additionally, ChargePoint's strong cash position, with $225 million at the end of the quarter, along with a slight increase in subscription revenue and better-than-expected operational metrics, reinforces the company's potential for continued growth in the evolving electric vehicle market.

ChargePoint Holdings Inc. reported Network Charging Systems Revenue of $52.6 million, reflecting a substantial decrease of 28.9% year-over-year, indicating potential challenges in capturing growth in the electric vehicle charging market. Operating expenses, while reduced, remain high at 51.1% of revenue, which raises concerns about the sustainability of cost management in relation to revenue generation, especially as the company has lost its leading position in Level 2 AC Charging. Furthermore, external factors such as economic uncertainty and reduced NEVI funding are likely to hinder customer investment in charging infrastructure, contributing to slower growth expectations and heightened risks surrounding EV adoption and profitability.