ChargePoint Holdings (CHPT) Stock Forecast & Price Target

ChargePoint Holdings Inc demonstrated a notable improvement in non-GAAP gross profit margin, rising to 30.1% from 25.9% on a sequential basis, largely due to enhanced hardware margins and growth in the subscriptions business. The company anticipates further margin increases throughout FY26, particularly in the second half, as it benefits from a favorable revenue mix and continued cost improvements. Additionally, ChargePoint's robust cash position of $225 million and the consistent growth in subscription revenue, which increased by 5.1% quarter-over-quarter and 14.2% year-over-year, supports a positive outlook for the company's financial stability and operational performance.

ChargePoint Holdings Inc's Network Charging Systems Revenue totaled $52.6 million, reflecting a lack of growth with a significant 28.9% decline year-over-year, which raises concerns about the company's ability to maintain market presence. Furthermore, while non-GAAP operating expenses decreased sequentially, they still represented 51.1% of revenue, highlighting ongoing challenges in controlling costs relative to sales. The company also faces headwinds due to persistent inventory reductions and economic uncertainties affecting customer investment decisions, which could further impact its sales and subscription revenue amid slowing EV adoption rates in the United States.