ChargePoint Gears Up to Report Q1 Earnings: Here's What to Expect

ChargePoint (CHPT) is expected to report a fiscal Q1 2026 loss of 5 cents per share on revenues of $100.52 million, a 6.09% year-over-year decline. While EPS estimates have improved, the company anticipates revenues between $95 million and $105 million, down from $107 million in the prior year, and expects a slight rise in operating expenses, potentially impacting the top line and operating margin; however, gross margin gains from cost cuts and subscriptions may provide some offset.

Analysis

ChargePoint Holdings, Inc. (CHPT) is approaching its first-quarter fiscal 2026 earnings release with expectations of a loss of 5 cents per share on revenues of $100.52 million. This revenue forecast signifies a 6.09% year-over-year decline, a point of concern despite consensus earnings per share estimates having improved by 2 cents over the past 90 days, suggesting a 54.55% bottom-line improvement from the year-ago reported figure. In the preceding fourth-quarter fiscal 2025, CHPT reported a narrower-than-anticipated loss of 6 cents per share, better than the 13-cent loss in the comparable prior-year period, though its revenues of $102 million missed consensus estimates and were down from $116 million year-over-year. A key positive development was the achievement of a 30% non-GAAP gross margin in Q4, an 8 percentage point year-over-year improvement driven by reduced hardware costs and increased subscription revenues, a margin level the company aims to sustain. However, CHPT's own guidance for Q1 fiscal 2026 revenues is between $95 million and $105 million, down from $107 million in Q1 fiscal 2025. This anticipated revenue contraction, combined with an expected slight increase in operating expenses due to annual salary adjustments and strategic investments, is likely to exert pressure on the company's top line and operating margin. The Zacks Earnings ESP for CHPT stands at 0.00% with a Zacks Rank #3 (Hold), indicating that the model does not conclusively predict an earnings beat. Recent earnings from peers present a mixed industry picture: Blink Charging (BLNK) reported wider losses and missed revenue estimates, while EVgo (EVGO) delivered a narrower loss and surpassed revenue expectations.

Key Decisions for Investors

• Investors should exercise caution ahead of ChargePoint's Q1 earnings, carefully weighing the improved bottom-line estimates against the projected year-over-year revenue decline and anticipated rise in operating expenses.
• Monitor the sustainability of the 30% non-GAAP gross margin, as continued success in cost management and subscription revenue growth will be crucial to offset top-line pressures.
• Pay close attention to management's forward-looking statements on revenue trends, the impact of strategic investments on future growth, and strategies to manage operating expenses effectively.
• Consider the divergent performance of peers like Blink Charging and EVgo as an indicator of varying execution capabilities or specific market segment dynamics within the EV charging sector.