Why Is ChargePoint Holdings (CHPT) Stock Up +41.81% Today?
Key Takeaways
- CHPT shares surged as much as 41.81% in Thursday's session, trading near $7.36 versus a prior close of $5.19.
- The rally was driven by a strong fiscal second-quarter earnings report that beat revenue and loss expectations.
- Non-GAAP gross margin hit a record 38%, while the adjusted EBITDA loss narrowed sharply year over year.
- Management issued third-quarter revenue guidance of $105 million to $115 million, roughly in line with consensus.
- Elevated short interest and a heavily beaten-down valuation amplified the upside momentum.
- Traders are now watching whether the gains hold and how analysts revise their outlooks for the company's path to profitability.
Opening Summary
ChargePoint Holdings, Inc. (CHPT), a provider of networked electric-vehicle charging infrastructure and cloud-based software across North America and Europe, staged one of the day's sharpest rallies after reporting better-than-expected fiscal second-quarter results. Shares climbed roughly 41.81%, reaching about $7.36 after closing the previous session at $5.19. The stock moved decisively upward, with markets attributing the surge to an earnings-driven beat that showcased record gross margins, narrower losses, and continued progress toward operating profitability.
Earnings Results and Guidance
The primary catalyst was ChargePoint's fiscal second-quarter 2027 earnings report, released after the bell on September 2. Revenue rose 17.8% year over year to $116.1 million, comfortably exceeding analyst consensus of approximately $105 million. Networked charging systems revenue climbed 25% to roughly $62.9 million, while higher-margin subscription revenue grew 10% to about $43.7 million. The company posted an adjusted loss of $1.35 per share, better than the consensus estimate for a loss of $1.60 per share.
Guidance reinforced the bullish tone. Management forecast fiscal third-quarter revenue of $105 million to $115 million, with the midpoint slightly above consensus expectations. The combination of a top-line beat and constructive forward guidance gave investors confidence that a multi-quarter restructuring effort is translating into tangible operating improvement.
Margin Expansion and a Narrowing Path to Breakeven
Investors focused heavily on profitability metrics, where progress was most pronounced. Non-GAAP gross margin reached a record 38%, up 500 basis points from 33% a year earlier and 600 basis points sequentially. The quarter benefited from a one-time tariff refund of roughly $4.2 million; excluding that benefit, normalized gross margin was approximately 35%, still a meaningful improvement driven by better hardware economics, lower freight and warehousing costs, and a richer product mix.
Discipline on the cost side compounded the gains. Non-GAAP operating expenses fell 4% sequentially and 11% year over year to about $52 million, aided by a cost-optimization program completed in late July. As a result, the adjusted EBITDA loss narrowed to roughly $5 million from $22 million a year earlier, and the adjusted net loss shrank by 72%. Chief Executive Officer Rick Wilmer characterized the quarter as exceptional, citing record gross margin and rigorous cash management, with the company holding about $95.7 million in cash at quarter-end.
Short Squeeze and Technical Momentum
The magnitude of the move was likely amplified by the stock's heavily shorted, beaten-down profile. With short interest near 22% of the float and shares trading at a fraction of their 52-week high of $12.61, a positive fundamental catalyst forced short sellers to cover positions, adding fuel to the price rally. The stock also reclaimed levels well above its recent trading range, reinforcing the sense of a technical breakout even as broader sentiment remained subdued.
Market Context and Trading Activity
The surge was company-specific rather than a reflection of broader market strength. Major U.S. indexes were little changed, with the S&P 500 broadly flat and the Nasdaq slightly lower, indicating that CHPT diverged sharply from the tape. Trading volume ran well above its typical daily average, underscoring conviction behind the move. While peers such as BLNK and EVGO operate in the same EV charging space, the day's action was largely isolated to ChargePoint's own results rather than a broad sector rally.
What Comes Next for CHPT
The next test for CHPT is whether the operational gains that drove this quarter's beat prove durable. Investors will watch for analyst estimate revisions and management commentary on sustaining normalized margins near 35%, keeping operating expenses below $50 million per quarter, and progressing toward adjusted EBITDA breakeven. Key risks remain, including lingering unprofitability, negative cash flow, competitive pressure in EV charging, and a still-uncertain macroeconomic backdrop for electric-vehicle adoption. The company's forward execution will determine whether this earnings-driven move marks a genuine inflection or a shorter-lived relief rally.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CHPT sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for CHPT moved above the 200-day moving average on September 18, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
CHPT moved above its 50-day moving average on September 03, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CHPT crossed bullishly above the 50-day moving average on September 03, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 57%.
Following a +7.14% 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%.
The Aroon Indicator entered an Uptrend today. In 80 of 104 cases where CHPT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 77%.
Bearish Trend Analysis
The 10-day RSI Indicator for CHPT moved out of overbought territory on September 21, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 15 similar instances where the indicator moved out of overbought territory. In 15 of the 15 cases, the stock moved lower in the following days. This puts the odds of a move lower at 90%.
The Momentum Indicator moved below the 0 level on October 02, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on CHPT as a result. In 75 of 79 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 90%.
The Moving Average Convergence Divergence Histogram (MACD) for CHPT turned negative on September 24, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 44 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 88%.
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%.
CHPT broke above its upper Bollinger Band on September 03, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 1 (best 1 - 100 worst), pointing to outstanding 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 Price Growth Rating for this company is 39 (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 Valuation Rating of 98 (best 1 - 100 worst) indicates that the company is significantly overvalued 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: P/B Ratio (9.930) is normal, around the industry mean (2.222). CHPT's P/E Ratio (8020.410) is considerably higher than the industry average of (243.370). 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 (0.018) among similar stocks. P/S Ratio (0.507) is also within normal values, averaging (1.057).
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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