GET DAILY SIGNALSWhy Is ChargePoint (CHPT) Stock Up +56.07% Today?
Key Takeaways
- CHPT shares surged more than 56% in Thursday's session after the company reported fiscal second-quarter results that beat expectations.
- The primary catalyst was an earnings beat: revenue of $116.1 million, up 18% year over year, versus roughly $105 million expected.
- Profitability metrics improved sharply, with non-GAAP gross margin reaching a record 38% and the adjusted EBITDA loss narrowing by about 78%.
- Elevated trading volume and call-option activity suggested strong momentum and possible short-covering in a heavily shorted name.
- Traders are watching whether the rally holds and how management's third-quarter guidance and new Express Solo DC fast-charging platform perform.
Opening Summary
ChargePoint Holdings, Inc. (CHPT), a leading provider of networked electric-vehicle (EV) charging hardware, software, and services, saw its stock soar in Thursday's trading. Shares climbed roughly 56.07% to around $8.10, up from a prior-session close of $5.19. The advance followed the company's fiscal 2027 second-quarter report, which delivered revenue and margin results well above Wall Street forecasts and pointed to a faster-than-expected path toward profitability.
Earnings Results and Guidance
The market's immediate reaction centered on a stronger-than-expected quarterly report. CHPT posted revenue of $116.1 million, an 18% increase from the prior year and comfortably ahead of the roughly $105 million consensus. Networked Charging Systems revenue rose 25% to $62.9 million, while higher-margin Subscription revenue increased 10% to $43.7 million. The company also exceeded the high end of its own prior guidance range.
For the fiscal third quarter, management guided revenue to between $105 million and $115 million, with a midpoint of $110 million that sat slightly above analyst estimates. The company's commentary that it is building a path toward positive cash flow later in the fiscal year reinforced investor confidence in the turnaround narrative.
Margin Expansion and Cash Discipline
Beyond the top-line beat, investors focused on accelerating profitability. Non-GAAP gross margin reached a record 38%, up five percentage points year over year, though roughly three percentage points of that improvement reflected one-time tariff refunds. Excluding those refunds, normalized gross margin still improved to about 35%. Non-GAAP adjusted EBITDA loss narrowed to $4.8 million, a 78% improvement from a year earlier and far better than the roughly $16 million loss analysts had modeled.
Management emphasized disciplined cash management, reporting essentially zero cash burn for the quarter and holding about $96 million in cash. Inventory declined sequentially, releasing working capital that helped fund operations. The company also highlighted early-access shipments of its new Express Solo DC fast-charging product, which it expects to become a meaningful revenue driver entering fiscal 2028.
Market Context and Trading Activity
The move came on dramatically elevated volume, with trading activity far exceeding the stock's typical daily average. Reports also flagged unusually heavy call-option buying, consistent with momentum-driven and short-covering activity in a name that has carried elevated short interest. The surge lifted CHPT well above both its 50-day and 200-day moving averages and further away from its 52-week low, though shares remained below their 52-week high near $12.61.
Broader equity markets showed limited movement during the session, indicating that the advance was company-specific rather than a broad sector rally. Peers in the EV charging and clean-energy space, including EVGO and BLNK, have also seen periodic sympathy moves, but the magnitude of CHPT's gain was driven primarily by its own results.
What Comes Next for CHPT
The outlook for CHPT will depend on whether the company can sustain its margin gains and execute on its product roadmap. Investors will watch the ramp of the Express Solo fast-charging platform, further inventory reductions, and any progress toward positive cash flow. Demand for EV charging infrastructure remains sensitive to broader EV adoption trends, government policy, and interest rates, all of which introduce uncertainty.
Despite the strong quarter, the company remains unprofitable on a GAAP basis, and third-quarter guidance implies slower sequential growth. Analyst sentiment had been cautious heading into the print, and sustained gains will likely require continued evidence of margin durability and cost discipline rather than one-time benefits.
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CHPT's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for CHPT moved out of oversold territory on October 15, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 39 similar instances when the indicator left oversold territory. In 35 of the 39 cases the stock moved higher. This puts the odds of a move higher at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 21, 2026. You may want to consider a long position or call options on CHPT as a result. In 59 of 79 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 75%.
The Moving Average Convergence Divergence (MACD) for CHPT just turned positive on October 23, 2026. Looking at past instances where CHPT's MACD turned positive, the stock continued to rise in 41 of 52 cases over the following month. The odds of a continued upward trend are 79%.
CHPT moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +17.34% 3-day Advance, the price is estimated to grow further. Considering data from situations where CHPT advanced for three days, in 182 of 234 cases, the price rose further within the following month. The odds of a continued upward trend are 78%.
CHPT may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In 69 of 93 cases where CHPT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 74%.
Bearish Trend Analysis
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The 10-day moving average for CHPT crossed bearishly below the 50-day moving average on October 19, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 86%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHPT declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 90%.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 32 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: CHPT's P/B Ratio (-6.130) is slightly lower than the industry average of (2.388). P/E Ratio (-1.151) is within average values for comparable stocks, (17.301). CHPT's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (1.159). Dividend Yield (0.000) settles around the average of (0.094) among similar stocks. P/S Ratio (0.507) is also within normal values, averaging (1.057).
The Tickeron Price Growth Rating for this company is 41 (best 1 - 100 worst), indicating steady price growth. CHPT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 96 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CHPT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
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General Information
a blank check company, which formed for the purpose of effecting a merger, stock exchange, asset acquisition, stock purchase, recapitalization, and reorganization
Industry SpecialtyStores
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