EV charging solutions provider ChargePoint Holdings (NYSE: CHPT) beat Wall Street’s revenue expectations in Q2 CY2026, with sales up 17.7% year on year to $116.1 million. Guidance for next quarter’s revenue was better than expected at $110 million at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP loss of $0.35 per share was 58.5% above analysts’ consensus estimates.

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StockStory’s Take

ChargePoint’s second quarter results were well received by the market, reflecting both operational improvements in cash management and significant progress on gross margin expansion. Management highlighted the contribution of new product launches, especially the express line of DC charging solutions co-developed with Eaton, as well as advancements in inventory control. CEO Rick Wilmer noted, “We achieved this performance despite the uncertainty, particularly in North America,” pointing to continued delays in major U.S. projects but no cancellations. Notably, revenue for the quarter was $99 million, down 9% year-on-year, marking a period of margin expansion despite a decline in top-line growth.

Looking ahead, ChargePoint’s forward guidance is shaped by ongoing investment in product innovation and a cautious approach to operating expenses given macroeconomic headwinds. Management is prioritizing the commercialization of recently announced AC and DC charging architectures, with particular focus on scaling in Europe, where EV adoption remains robust. CFO Manzi Katani emphasized, “Delivering revenue growth, and ultimately reaching non-GAAP adjusted EBITDA breakeven and generating positive cash flow remain our primary focus areas.”

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to the acceleration of its product roadmap, a deepened partnership with Eaton, and improved operational discipline amid mixed demand trends between North America and Europe.

• Eaton partnership impact: The collaboration with Eaton enabled ChargePoint to launch a new express DC fast charging line, which management expects will lower capital and operating costs for customers while accelerating deployment, particularly in Europe and North America.
• Subscription business growth: Subscription revenue grew as a proportion of total sales, driven by an expanding installed base and increased adoption of software services. Subscription margin reached a new high, with management noting continued economies of scale and optimization of support costs.
• Operational expense discipline: Structural changes to operating expenses, including reductions in non-essential spend and improved working capital management, allowed ChargePoint to sharply reduce quarterly cash usage, despite temporary R&D investments for new product launches.
• Geographic performance divergence: European markets outpaced North America in EV adoption and demand for charging infrastructure, supported by a 26% year-over-year increase in European EV sales. In contrast, U.S. demand was impacted by slower EV sales growth and uncertainty surrounding expiring tax credits.
• Product mix evolution: The introduction of new AC and DC architectures, along with the co-branded Eaton product line, positioned ChargePoint to address a broader range of customer use cases and drive future margin improvement through higher-value offerings.

Drivers of Future Performance

ChargePoint’s outlook is anchored by ongoing product innovation, a growing presence in Europe, and careful cost management to balance investment with profitability goals.

• Product innovation pipeline: Management is prioritizing the commercialization of new AC and DC charging solutions and a bidirectional home charging product, aiming to expand ChargePoint’s reach in both residential and commercial segments. These launches are expected to support margin improvement and enhance differentiation in a competitive market.
• European growth opportunity: Robust EV sales growth in Europe is providing a tailwind for infrastructure demand. Management expects new product introductions and increased inventory positions to drive ChargePoint’s expansion in key European markets, with early indications of positive channel response in the UK, France, and Germany.
• Managing North America headwinds: The company is navigating delayed project timelines and policy uncertainty in the U.S., particularly around expiring tax incentives. Management believes the long-term outlook remains favorable, but near-term results depend on EV adoption rates and regulatory developments that could impact project timing and customer investment decisions.

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will be watching (1) the pace of adoption for ChargePoint’s new DC and AC product lines, (2) signs of sustained margin improvement as new manufacturing and supply chain strategies take hold, and (3) the impact of European expansion, especially as new inventory positions support broader channel reach. Execution in managing U.S. demand headwinds will also be a key area of focus.

ChargePoint currently trades at $6.17, up from $5.19 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).

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