TomTom: automotive business declines 19% in third quarter, approximately 200 positions affected by reorganization
TomTom published quarterly accounts on October 15, 2026 marked by a 19% decline in its automotive business, while its operating profitability exceeded the level anticipated by the group. At the same time, the Dutch group announced a reorganization into three divisions affecting approximately 200 positions.
According to Chief Financial Officer Taco Titulaer, third-quarter revenue is in line with internal forecasts, and operating margin reflects cost control. These two elements, declining revenues and a better-contained cost base, explain the revision of annual guidance published the same day.
Revenue of €129M, automotive down 19%
In the third quarter of 2026, the group's revenue declined 6% to €129M, compared to €137M a year earlier. Location Technology activity proved more resilient, with a decline of 3% to €115M, compared to €118M in the third quarter of 2025.
The decline is concentrated on automotive operating revenue, which fell from €85M to €68M, a decline of 19%. Operating result stood at €6M, compared to €8M a year earlier, and operating margin at 5%, compared to 6% in the third quarter of 2025.
Over one year, margin is thus slightly down, but it exceeds the level anticipated by management for this quarter. Net cash stood at €239M, compared to €263M at the end of 2025.
A reorganization into three divisions affecting approximately 200 positions
Chief Executive Officer Mike Schoofs announced the reorganization of the group around three divisions: automated driving, location intelligence and navigation. The stated objective is to reduce hierarchical levels and bring decision-making closer to execution. Approximately 200 positions are affected globally, out of a total workforce of 3,300 employees.
Management presents automated driving and location intelligence as growth drivers supported by artificial intelligence. Navigation remains, however, according to Mike Schoofs, the group's primary revenue source.
Several recent announcements illustrate this direction. On September 30, 2026, TomTom made its location data accessible to AI agents developed on Microsoft Fabric and Microsoft Foundry. The group also launched the "TomTom Maps MCP Server" in Claude's connector directory, and announced on October 12, 2026 a cooperation with DeepRoute.ai in automated driving.
2026 margin raised to 4%, approximately 7% excluding restructuring charges
TomTom tightened its 2026 revenue range and raised its operating margin target, now set at 4%. When publishing the 2025 full-year results on March 15, 2026, the group had retained a revenue reference of €525M for 2026, compared to €555M achieved in 2025. Prior to publication, analysts anticipated an average of €527M for the current fiscal year.
According to the Chief Financial Officer, this increase in the margin target is explained by performances recorded since the beginning of the year and by the expected decline in salary costs in the fourth quarter, linked to the reorganization. Excluding non-recurring restructuring charges, the group targets operating margin of approximately 7%.
For 2027, TomTom reiterated its forecast for Location Technology revenue growth, based, according to Taco Titulaer, on higher gross margins and a more efficient cost base. The structuring element of the publication remains this operating margin target raised to 4% for 2026, and approximately 7% excluding restructuring costs.
