How to Play ChargePoint Stock After Its Massive 75% Post-Earnings Surge

ChargePoint Holdings (CHPT) has given investors a dramatic post-earnings catalyst, with shares surging almost 75% intraday after the electric-vehicle (EV) charging company delivered a stronger-than-expected second-quarter fiscal 2027 report. Revenue jumped 18%, while topping the company’s guidance, and non-GAAP gross margin reached a record 38%.

The results suggest that ChargePoint’s turnaround is gaining traction, with improving margins, lower operating expenses, and stronger charging-system demand providing a more credible path toward profitability.

With CHPT now trading sharply higher after earnings, it remains to be seen whether the rally marks the beginning of a sustained recovery or has already priced in much of the improvement.

About ChargePoint Holdings Stock

ChargePoint Holdings is a Campbell, California-based electric vehicle charging infrastructure company that provides charging hardware, cloud-based software, and related services for residential, commercial, fleet, and public charging applications. Founded in 2007, ChargePoint operates one of the largest EV charging networks and serves customers across multiple markets. It has a market cap of approximately $240.3 million.

CHPT stock has staged a dramatic rebound in recent trading, sharply reversing its earlier weakness and delivering substantial gains following its latest earnings report. Shares surged massively by 75% on Sept. 3 and another 8.9% on Sept. 4. Although the stock pulled back 5.3% on Sept. 8 and 4.5% on Sept. 9, CHPT is still up 68.9% over the past five days, highlighting the strength of the post-earnings rally.

The sharp move has also significantly improved ChargePoint’s year-to-date (YTD) performance. CHPT is up 32% for 2026, putting the stock firmly in positive territory for the year despite its highly volatile trading history.

However, the longer-term picture remains challenging. Despite the recent surge, ChargePoint shares were still down 13% over the past year. The contrast between the stock’s powerful short-term momentum and its negative one-year return highlights both the potential of ChargePoint’s turnaround and the considerable volatility that remains around the company.

CHPT stock currently trades at a discount to industry peers at 0.59 times sales.

Stronger-Than-Expected Q2 Performance

ChargePoint Holdings reported its second-quarter fiscal 2027 financial results on Sept. 2, for the quarter ended Jul. 31. Revenue increased 18% year-over-year (YoY) to $116.1 million. Within that total, networked charging systems' revenue jumped 25% to $62.9 million, while subscription revenue rose 10% to $43.7 million from $39.9 million. The performance was particularly notable because ChargePoint had guided for second-quarter revenue of $100 million to $110 million, meaning the company exceeded the top end of its forecast.

Profitability also showed meaningful improvement. Its non-GAAP gross margin increased to 38% from 33%. ChargePoint noted that margin figures benefited by four percentage points from tariff refunds. Even excluding that benefit, however, the YoY direction was favorable.

Moreover, the company made significant progress in controlling expenses. Its non-GAAP operating expenses fell 11% to $52.3 million from $58.6 million. On the other hand, the non-GAAP net loss contracted 72% to $9.2 million from $33 million. Its adjusted loss per share came in at $0.35, better than expected. Perhaps the clearest indicator of the improving cost structure was that adjusted EBITDA loss shrank 78% to $4.8 million.

ChargePoint ended the quarter with $95.7 million in cash, cash equivalents, and restricted cash as of Jul. 31.

The company also highlighted several commercial developments, including early-access shipments of its Express Solo charger, an expanded partnership with Eaton (ETN), a new fleet-charging agreement with Mercedes-Benz (MBGYY) for business customers in the U.K. and Germany, and new charging deployments with Optimus Energy Solutions and Onvo.

For the third quarter of fiscal 2027, ChargePoint expects revenue of $105 million to $115 million for the quarter ending Oct. 31. The guidance suggests that management expects the recent momentum to continue into the second half of fiscal 2027, although the range remains below the $116.1 million reported in the second quarter.

Nevertheless, if it can continue growing revenue while narrowing its operating losses, the latest results could strengthen the case for a longer-term turnaround in CHPT.

Meanwhile, analysts anticipate loss per share to improve 34.3% YoY to $4.82 in fiscal 2027 and again 19.9% to $3.86 in fiscal 2028.

What Do Analysts Expect for CHPT Stock?

Despite the post-earnings rally, analysts remain cautious, as the company's path to sustained profitability is still unproven and the recent surge might leave limited room for further near-term upside.

B. Riley Securities analyst Ryan Pfingst maintained a “Neutral” rating on Sept. 4 but raised the price target to $8 from $6 following ChargePoint’s earnings report. B. Riley viewed the earnings improvement positively but remained cautious about the valuation after the stock’s rally.

Needham analyst Chris Pierce maintained a “Hold” rating on ChargePoint following the company’s second-quarter results. Oppenheimer also gives a “Hold” rating for CHPT, reinforcing the cautious tone among analysts immediately following earnings.

CHPT stock has a consensus “Hold” rating overall. Out of 10 analysts covering the stock, nine recommend a “Hold” rating, and one offers a “Strong Sell.”

CHPT is currently trading at a premium to the average analyst price target of $6.92 and the Street-high target price of $8.

On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.