ChargePoint Returns to Growth, Beats Estimates as Market Cheers
CHARGEPOINT HOLDINGS INC (NYSE:CHPT) reported financial results for its third quarter of fiscal year 2026, delivering a performance that exceeded analyst expectations and signaled a potential turning point for the embattled electric vehicle charging network provider. The company's report of a return to revenue growth, coupled with significant improvements in its cost structure and balance sheet, was met with a positive reaction in after-hours trading.
Earnings and Revenue Versus Estimates
The core financial metrics from the quarter showed ChargePoint outperforming consensus estimates, a welcome development for investors.
- Revenue: The company reported Q3 revenue of $105.7 million, a 6% increase from the $99.6 million reported in the same quarter last year. This figure surpassed the analyst estimate of approximately $98.6 million.
- Earnings Per Share: On a non-GAAP basis, which excludes items like stock-based compensation, ChargePoint reported a pre-tax net loss of $30.2 million. This resulted in a non-GAAP loss per share of $1.32, which was slightly better than the estimated loss of $1.34 per share.
The return to year-over-year revenue growth was driven by strength in both of ChargePoint's main business segments. Networked charging systems revenue grew 7% to $56.4 million, while higher-margin subscription revenue saw a more robust 15% increase to $42.0 million.
Market Reaction and Price Action
The market's immediate response to the earnings beat and accompanying business updates was positive. Following the release, ChargePoint's stock price rose over 7% in after-market trading. This bullish move suggests investors are interpreting the results as evidence that the company's extensive restructuring and cost-cutting measures are beginning to bear fruit, stabilizing its financial trajectory after a period of significant challenges.
Key Highlights from the Press Release
Beyond the headline numbers, management emphasized several strategic achievements that strengthened the company's position:
- Improved Profitability: Gross margins showed marked improvement. GAAP gross margin expanded to 31%, up from 23% a year ago, primarily due to the growing contribution of subscription revenue.
- Substantial Cost Reduction: The company aggressively reduced operating expenses. GAAP operating expenses fell 16% year-over-year to $76.8 million, reflecting ongoing restructuring efforts.
- Strengthened Balance Sheet: A major highlight was the announcement of a significant debt reduction completed in November 2025. The company reduced its total outstanding debt by over 50%, or $172 million, alleviating a key concern for investors regarding its liquidity and financial flexibility.
- Business Momentum: ChargePoint highlighted the release of its next-generation software platform and the renewal of a key contract with Sourcewell to provide EV charging solutions to public agencies.
Forward Outlook and Analyst Comparisons
For the upcoming fourth quarter ending January 31, 2026, ChargePoint provided revenue guidance in the range of $100 million to $110 million. The midpoint of this range, $105 million, sits slightly above the current analyst sales estimate of approximately $105.1 million for Q4, indicating management's confidence in maintaining recent momentum.
Conclusion
ChargePoint's third-quarter report presents a narrative of stabilization and cautious optimism. The company not only beat revenue and earnings estimates but also demonstrated tangible progress in improving its margins, cutting costs, and—most critically—repairing its balance sheet through deep debt reduction. The positive after-hours stock movement reflects a market that views these results as a step in the right direction, potentially marking an inflection point as ChargePoint continues to execute its three-year plan in the evolving EV ecosystem.
For a detailed look at ChargePoint's historical earnings and future estimates, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
