TomTom sees revenue fall despite higher margin target
The Amsterdam-based navigation company expects higher profitability, but saw revenue decline in the third quarter.
Follow-up to: TomTom to cut 200 jobs in reorganisation Thursday, 15 October 2026, 08:30
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TomTom recorded lower revenue in the third quarter of 2026 than a year earlier. At the same time, the company raised its operating margin target and linked this to a reorganisation in which around two hundred positions will disappear.
Group revenue came to €129 million, compared with €137 million in the third quarter of 2025. TomTom reported an operating result of €6 million, against €8 million a year earlier. The operating margin consequently fell from 6 to 5 per cent.
Activities related to automotive were particularly under pressure. According to TomTom, revenue from Location Technology fell from €118 million to €115 million. Operating revenue from automotive declined from €85 million to €68 million.
TomTom is maintaining its expectation that location technology can return to growth from 2027. The company says it wants to focus more strongly on automated driving, location intelligence for businesses and its existing navigation activities.
For 2026, the company expects an operating margin of around 4 per cent, compared with an earlier expectation of 3 per cent. In the fourth quarter, TomTom will incur a one-off reorganisation charge of €15 million; according to the company, the annual saving should amount to approximately €21 million.
The three new business units are to operate with fewer management layers. Around two hundred positions worldwide will be affected, on top of earlier reorganisations. According to its corporate information, TomTom had approximately 3,300 employees worldwide. The figures therefore present a mixed picture: lower revenue, but a higher profitability target.
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The quarterly figures, margin target and reorganisation have been consistently confirmed by the company and Reuters. Expectations of growth are clearly presented as company forecasts.
- confirmed Revenue fell to €129 million in the third quarter. — TomTom reports €129 million, compared with €137 million a year earlier. source
- confirmed The operating margin came to 5 per cent. — Included in TomTom’s financial summary. source
- confirmed Around two hundred positions will be affected. — TomTom and Reuters report the reorganisation. source
- confirmed TomTom raised its margin forecast for 2026 to around 4 per cent. — Reuters describes the increase from 3 to 4 per cent. source
Editor's note
The financial figures and reorganisation come from TomTom’s quarterly report and are independently described by Reuters and NL Times. The expectations for 2027 are company projections, not established outcomes.Sources
- Third quarter 2026 results — TomTom
- TomTom to cut 200 jobs in reorganisation, targets €21 million in savings — Reuters via Euronext
- TomTom plans to cut 200 jobs, roughly 6% of workforce — NL Times
The story so far
- Thursday, 15 October 2026, 08:30 TomTom to cut 200 jobs in reorganisation
- Thursday, 15 October 2026, 18:31 TomTom sees revenue fall despite higher margin target (this article)
More on this in Dutch media
- NRC — „tomtom kwartaalcijfers”
- NOS — „tomtom kwartaalcijfers”
- Het Parool — „tomtom kwartaalcijfers”