ChargePoint Holdings (CHPT) Stock Forecast & Price Target

ChargePoint Holdings Inc reported a significant increase in its non-GAAP gross profit margin to 30.1%, up from 25.9% sequentially, driven by improved hardware margins and robust growth in its subscription business, suggesting positive operational efficiency. Management anticipates continued margin improvement throughout the fiscal year, particularly in the second half of FY26, due to favorable shifts in revenue mix and cost management strategies. Additionally, the company ended the quarter with $225 million in cash and cash equivalents, reflecting a strong liquidity position, while subscriptions revenue exceeded projections and showed substantial growth both quarterly and year-over-year.

ChargePoint Holdings Inc. reported Network Charging Systems Revenue of $52.6 million, which remained flat sequentially but represented a significant decline of 28.9% compared to the previous year. The company's non-GAAP operating expenses also indicate a concerning trend, as they constituted 51.1% of revenue and showed a decline without improving gross margins, suggesting inefficiencies amid slowing unit growth. Additionally, prolonged economic uncertainty and the potential negative impact of reduced NEVI funding on customer investments in fast chargers could hinder ChargePoint's sales and subscription growth, exacerbating investor concerns regarding EV adoption rates and profitability timelines.