ChargePoint 2026 Q1 Earnings Revenue Misses Targets, Net Loss Narrows

ChargePoint Holdings (CHPT) announced its fiscal 2026 Q1 earnings, showing a revenue shortfall against expectations and providing cautious guidance for the coming quarter. Revenue for the first quarter was $97.64 million, missing analysts’ estimates of $100.8 million and reflecting an 8.8% year-on-year decline. ChargePoint expects second-quarter revenue to be between $90 million and $100 million, aligning with ongoing macroeconomic challenges. Despite the revenue miss, ChargePoint demonstrated progress in cost management and operational efficiency, indicating a potential path to achieving positive adjusted EBITDA later this fiscal year.

Revenue
ChargePoint's revenue decreased by 9% compared to the previous year, totaling $97.64 million for the first quarter of fiscal 2026. The networked charging systems segment generated $52.06 million, marking a notable decline. In contrast, the subscription segment contributed $38.02 million, showing a positive trend with 14% year-over-year growth. Other revenue sources added $7.56 million to the total.

Earnings/Net Income
ChargePoint reported a GAAP net loss of $57.12 million for the quarter, which is a 20% improvement from the previous year's loss. The EPS loss narrowed to $0.12 per share, reflecting better financial management and indicating a positive trend despite ongoing challenges.

Price Action
The stock price of ChargePoint has climbed 7.83% during the latest trading day, has jumped 13.99% during the most recent full trading week, and has surged 41.67% month-to-date.

Post-Earnings Price Action Review
The strategy of buying CHPT when there is a revenue miss and holding for 30 days resulted in poor performance. A backtest revealed significant losses, with an overall decline of 95.30% and an excess return of -122.30%. The compound annual growth rate stood at -57.21%, while the strategy experienced a maximum drawdown of -97.44%. The Sharpe ratio was -0.69, indicating that the strategy carried more risk than the benchmark without offering adequate returns. These metrics highlight the potential pitfalls of this approach, as the risk outweighs the expected gains, making it an unreliable strategy for investors looking to capitalize on short-term price movements.

CEO Commentary
ChargePoint's President and CEO, Richard Wilmer, emphasized the company's solid Q1 performance, with revenue at $98 million and a non-GAAP gross margin reaching 31%. He highlighted the success of their DC fast charging program with GM and new partnerships, including one with Eaton, aimed at simplifying electrified transportation. Wilmer acknowledged challenges such as macroeconomic conditions impacting customer spending and the exit of competitors, but expressed optimism about the ongoing EV adoption, stating, "We believe this will lead to the installation of more chargers, and ChargePoint will be ready to capitalize on that demand.” Overall, his tone was cautiously optimistic regarding growth and strategic positioning.

Guidance
For Q2 of fiscal 2026, ChargePoint expects revenue to range between $90 million and $100 million, reflecting caution due to macroeconomic challenges and ongoing tariff uncertainties. The company anticipates revenue growth later in the year driven by the introduction of new AC hardware, improved performance in Europe, and benefits from the Eaton partnership. ChargePoint remains focused on achieving adjusted EBITDA positivity within the fiscal year, emphasizing revenue growth, gross margin expansion, and rigorous cost management.

Additional News
ChargePoint recently announced an innovative partnership with Eaton Corporation, integrating EV charging solutions with Eaton’s power management systems to advance vehicle-to-everything capabilities. This collaboration aims to enhance infrastructure solutions and co-develop technologies that bolster ChargePoint's offerings in North America and Europe. In a strategic shift, ChargePoint appointed David Vice as Chief Revenue Officer to drive global sales and marketing, focusing on revenue growth and operational efficiency. Additionally, ChargePoint expanded its AC charging product lineup, introducing bidirectional charging technology designed for diverse applications, including commercial, residential, and fleet segments. These developments are poised to strengthen ChargePoint’s market position and facilitate growth amid a rapidly evolving industry landscape.