Updated version 1-Update 1-TomTom shares fall as revenue misses expectations outweigh expected margin improvement

Added charts, rephrased content, supplemented share price trends in paragraph 1, added performance data in paragraph 2, supplemented analyst comments in paragraph 3, added restructuring details in paragraph 4, and included reporting on artificial intelligence and autonomous driving businesses in paragraphs 6 to 9.

Mathias de Rozario

Reuters, October 15 - Dutch location data company TomTom TOM2.AS reported quarterly revenue below expectations on Thursday, and despite raising its profit forecast and announcing a restructuring plan involving 200 job cuts, its share price still fell by 5%.

Third-quarter revenue fell to €128.9 million ($144.6 million), missing the company-provided market consensus forecast of €131 million.

ING analyst Marc Hesselink stated that this performance highlights a continuing trend of weak revenue, with the automotive segment remaining sluggish and the enterprise business revenue also missing expectations.

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As TomTom reports its third-quarter results, the company is undergoing a broad restructuring, focusing on the autonomous driving and AI-driven location intelligence sectors, which it views as the drivers to return to revenue growth by 2027.

As part of the restructuring plan, TomTom plans to cut about 200 roles worldwide, roughly 6% of its workforce, with expected annual cost savings of approximately €21 million.

Despite €15 million in restructuring charges expected in the fourth quarter, TomTom has raised its 2026 operating margin forecast from the previous 3% to around 4%, citing stronger year-to-date results and anticipated lower wage costs after the organizational overhaul. As part of its embrace of an artificial intelligence strategy, the company already cut 300 jobs in 2025 link .

CEO Mike Schoofs told Reuters that although the autonomous driving industry has seen ups and downs over the past decade, the market is now showing tangible improvements.

“These cars still need to get on the road and demonstrate their capabilities, but you can already see them... you see projects launching, so you can really see the momentum and progress in the sector,” the CEO said.

Schoofs added that, compared to the automotive segment, revenue from AI-based location intelligence products in the enterprise market will materialize faster, while automotive use cases remain in a gradual development phase.

TomTom also narrowed its full-year revenue forecast range from the previous €495 million–€555 million to €505 million–€530 million.

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(1 US dollar = €0.8915)

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