ChargePoint 2026 Q1 Earnings Misses Targets as Net Income Improves 20.4%

ChargePoint (CHPT) reported its fiscal 2026 Q1 earnings on Jun 06th, 2025. ChargePoint missed revenue expectations with $97.64 million, falling short of the analyst estimate of $100.58 million. The company forecasted second-quarter revenue between $90 million and $100 million, aligning cautiously with macroeconomic challenges. Despite revenue misses, ChargePoint showed improvement in profitability metrics, narrowing net losses by 20.4% compared to the prior year. The company is committed to achieving positive non-GAAP adjusted EBITDA within fiscal 2026.

Revenue
ChargePoint's revenue for 2026 Q1 decreased by 8.8% from the previous year, totaling $90.08 million compared to $98.82 million in 2025 Q1. The networked charging systems division generated $52.06 million, showing a decline, while subscription revenue rose to $38.02 million, reflecting growth in recurring income. Additional revenue from other sources contributed $7.56 million, leading to an overall total revenue of $97.64 million, down from past figures.

Earnings/Net Income
ChargePoint narrowed its losses to $0.12 per share in 2026 Q1, improving from a $0.17 per share loss in 2025 Q1, representing a 29.4% improvement. Net loss reduced by 20.4% to $-57.12 million compared to $-71.80 million the previous year. Despite revenue challenges, the earnings per share performance shows gradual financial improvement.

Price Action
The stock price of ChargePoint has jumped 8.27% during the latest trading day, has climbed 7.42% during the most recent full trading week, and has surged 28.05% month-to-date.

Post-Earnings Price Action Review
The strategy of buying CHPT stock when revenue beats expectations and holding for 30 days proved significantly risky. This approach resulted in a negative return of -85.84%, accompanied by a Sharpe ratio of -0.66, indicating considerable risk and negative returns. The maximum drawdown reached -92.11%, highlighting substantial losses, while volatility was high at 71.24%. These metrics suggest that the strategy carried substantial risks, resulting in unfavorable outcomes for investors. The poor performance underscores the challenges faced by ChargePoint in maintaining consistent revenue growth and the volatility inherent in its stock price, indicating caution for investors relying on revenue beat strategies.

CEO Commentary
ChargePoint's President and CEO, Richard Wilmer, highlighted a revenue of $98 million for Q1 2026, aligning with guidance and marking a 31% non-GAAP gross margin, with gas subscription margins reaching a record 60%. He emphasized the company’s resilience amid macroeconomic challenges, pointing to a 16% rise in North American EV sales and a 22% increase in Europe, indicating robust demand for charging infrastructure. Wilmer underscored the significance of strategic partnerships, particularly with Eaton, to drive growth and innovation. He expressed optimism about achieving positive non-GAAP adjusted EBITDA within the fiscal year, while cautioning against economic uncertainties impacting customer spending.

Guidance
For Q2 fiscal 2026, ChargePoint expects revenue between $90 million and $100 million, reflecting caution due to ongoing macroeconomic changes and tariff uncertainties. The company anticipates revenue growth from the new AC hardware and benefits from the Eaton partnership. They aim for adjusted EBITDA positivity in a quarter during fiscal 2026, while continuing to focus on revenue expansion, gross margin improvement, and cost management.

Additional News
ChargePoint and Eaton have established an industry-first EV charging partnership as of May 21, 2025, aiming to innovate and expand the EV charging infrastructure. ChargePoint’s collaboration with Eaton is expected to drive growth and enhance product offerings, aligning with strategic goals. Additionally, ChargePoint is addressing non-compliance issues with the New York Stock Exchange as of February 21, 2025, intending to regain compliance without immediate impact on stock listing or trading. These strategic moves highlight ChargePoint’s commitment to maintaining market presence and advancing EV charging technology amidst regulatory challenges.