TomTom NV posted net earnings of 7.2 million euros for the three months to June 30, 2026, marking a return to profitability after a loss of 23.6 million euros in the same quarter a year earlier. The Dutch navigation and mapping company said its second-quarter results reflected a mix of weaker top-line performance and sharply lower operating costs.
Revenue for the period fell 5% year-on-year to 119.4 million euros, weighed down by softer sales across both the automotive and enterprise divisions. At the same time, TomTom recorded a 24% decline in operating expenses to 113.1 million euros, citing cost-reduction measures including layoffs as contributors to the lower expense base.
Guidance and near-term outlook
Management reiterated its full-year 2026 guidance. TomTom continues to target revenue between 495 million and 555 million euros for the year, and expects an operating margin above 3%. The company also signaled a longer-term revenue outlook, with CEO Mike Schoofs stating that TomTom anticipates a return to revenue growth beginning in 2027.
Strategic positioning
Once best known for consumer automobile GPS devices, TomTom has over the past decade shifted away from its consumer focus toward enterprise location technologies. While the company still sells some consumer GPS hardware, the bulk of its business now centers on location services and products for enterprise customers.
In recent years TomTom has also expanded into artificial intelligence, developing AI mapping platforms and agentic AI technology designed to interact with location programs. Management described the company as building on a solid foundation and said the broader location industry was gaining momentum in part due to advances in AI.
What the quarter shows
- Profitability returned in Q2 driven primarily by a significant reduction in operating expenses.
- Revenue declined year-on-year, reflecting weaker demand in both automotive and enterprise segments.
- Company reiterated 2026 revenue and margin guidance and expects revenue growth to resume in 2027.