TomTom reported an 8 percent year-over-year decline in second-quarter 2026 revenue to €135 million, down from €146 million in the prior-year period. Despite the top-line contraction, the company achieved a dramatic turnaround in operational profitability, delivering an operating profit (EBIT) of €9 million compared to a €20 million loss in the second quarter of 2025.
The financial performance was bolstered by a strong gross margin expansion to 90 percent, up from 88 percent a year earlier, driven by a higher mix of location technology revenue and disciplined cost management following organizational restructuring, the company said. Operating expenses fell 24 percent to €113 million during the quarter, helping the company achieve a 6 percent operating margin. Management reaffirmed its full-year 2026 guidance, projecting annual revenues between €495 million and €555 million with stable underlying demand across its core Automotive and Enterprise business units.
In reaction to the quarterly update, TomTom’s stock traded near €4.16 per share on the Euronext Amsterdam [TOM2], representing a modest retreat following broader technology sector adjustments. Analysts noted that while the company’s price-to-earnings ratio reflects an improving profitability outlook, valuation remains constrained by muted near-term revenue projections as legacy consumer hardware sales continue to decline.
TomTom continues to face intense competitive pressures in the digital mapping and location services sector, battling rival mapping giants HERE Technologies and Google Maps GOOG -0.72%↓ as well as specialized navigation competitors such as Garmin GRMN 0.52%↑. To maintain its market position, TomTom is heavily investing in lane-level mapping and generative artificial intelligence capabilities, recently introducing its Agent Toolkit within its Maps SDK to serve automated driving systems and Enterprise logistics clients.
CEO Mike Schoofs expressed confidence in the company’s trajectory, noting that ongoing technological investments will support a return to top-line revenue growth beginning in 2027. CFO Taco Titulaer added that cost discipline and stable automotive operational revenue position the mapmaker well for sustainable long-term cash generation.
 of €9 million compared to a €20 million loss in the second quarter of 2025.){kind=link}