TomTom shares fall as revenue miss outweighs higher margin forecast

By Mathias de Rozario

Oct 15 (Reuters) - 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)