TomTom shares fall as revenue miss outweighs higher margin forecast

Oct 15 — Dutch location data company TomTom posted lower-than-expected quarterly revenue ​on Thursday, sending its shares down 5% despite a raised profitability forecast and a restructuring plan involving 200 job cuts.

Third ‌quarter revenue fell to €128.9 million ($144.6 million) missing the €131 million expected in a company-provided consensus.

The results ⁠highlighted continued weak revenue trends ​with automotive remaining soft and enterprise ⁠revenue missing expectations, ING analyst Marc Hesselink said.

The third-quarter results ‌came amid a broader ‌restructuring at TomTom as it focuses on automated driving and ⁠AI-powered location intelligence, areas it sees ⁠driving a return to revenue growth in 2027.

As part of the reorganisation, TomTom is planning to cut around 200 jobs globally, roughly 6% of its workforce, expecting annualised cost savings of around €21 million.

TomTom raised its 2026 operating margin guidance to around 4% from ‌3% previously, despite a 15 million euro ​fourth-quarter restructuring charge, citing stronger year-to-date performance and lower expected salary costs from the organisational realignment. It already cut 300 jobs in 2025 as part of a drive to embrace AI.

While the automated driving industry has seen ups and downs over the last decade, they now see real market improvements, CEO Mike Schoofs told ​Reuters.

"The cars still need to hit the road and show those capabilities, ‌but you can ‌already see ⁠them ... You see programs rolling out, so you can really see traction and movement in there," the CEO said.

Schoofs added that revenue from AI-related location intelligence products should materialise faster in enterprise markets than in ‌automotive, where adoption remains ​gradual.

TomTom also narrowed its full-year revenue ‌expectations to between €505 and €530 ⁠million from €495 ​to €555 million previously.

($1 = 0.8915 euros)

(Reporting by Mathias de Rozario in Gdansk; editing by ​Bartosz Dabrowski)

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