TomTom (TOM2) Q3 2026 earnings summary

Executive summary

• Q3 revenue fell 6% YoY to €128.9m; EBIT was €6.0m, net income €5.1m and gross margin 90%.

• Three divisions—Automated Driving, Location Intelligence and Navigation—were established on a shared Foundation, affecting ~200 roles globally.

Financial highlights

• Q3 revenue was €128.9m versus €136.9m in Q3’25; YTD revenue was €392.7m versus €423.5m, down 7%.

• Q3 EBIT was €6.0m versus €8.4m; net income was €5.1m versus €9.1m, and EPS was €0.04 versus €0.07.

• Operating expenses fell 3% YoY to €110.6m; gross profit was €116.7m and gross margin improved to 90% from 89%.

• YTD EBIT was €28.3m versus a €5.7m loss, and net income was €26.0m versus an €11.5m loss.

Outlook and guidance

• FY26 revenue guidance narrowed to €505–530m from €495–555m; Location Technology revenue guidance is €450–470m, versus prior guidance of €435–485m.

• FY26 operating margin guidance increased to ~4%, including an estimated €15m Q4 restructuring charge; excluding the charge, expected margin is ~7%.

• Realignment is expected to generate €21m in annualized savings; Q4 OpEx is expected slightly below Q3, excluding restructuring.

• 2027 Location Technology revenue growth was reiterated, supported by higher gross margins and a more efficient cost base; Navigation is expected to drive most reported segment growth.