Finance
TomTom's Reorganization Boosts Operating Profit in Q1
Published by Global Banking & Finance Review®
Posted on April 16, 2026
2 min readLast updated: April 16, 2026
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Published by Global Banking & Finance Review®
Posted on April 16, 2026
2 min readLast updated: April 16, 2026
Add as preferred source on GoogleTomTom’s Q1 operating profit surged to €13.8 million—well above the €7 million consensus and last year’s €5.7 million—thanks to lower expenses and higher margins from its reorganization, despite a slight revenue dip to €129.2 million.
By Mathias de Rozario
April 16 (Reuters) - Dutch digital mapping specialist TomTom reported on Thursday higher than expected operating profit for the first-quarter of the year despite lower revenue following an internal reorganization.
Its earnings before interest and taxes (EBIT) came in at 13.8 million euros ($16.3 million), above analysts' average estimate of 7 million euros in a company-provided consensus and last year's level of 5.7 million euros.
TomTom said growth was driven by a higher margin and lower operating expenses after completing a reorganization last year.
"We have come through a situation of significant investments in a new mapping platform, ..., and that allowed us to simplify and streamline our organization," outgoing CEO and co-founder Harold Goddijn told Reuters.
In June 2025, it announced 300 job cuts as part of the reorganization and to embrace artificial intelligence.
The company, which counts Microsoft , Uber and Volkswagen among its customers, recorded lower revenue as an expected shift between old and new contracts will have a negative effect this year.
Its revenue dropped to 129.2 million euros, in line with analysts' average estimate of 130 million euros in a company-provided consensus from 140.4 million euros in 2025.
"In 2025, we had a record order intake in the automotive sector, so that will translate into revenue growth in 2027 and 2028," Goddijn said.
He added the group sees further opportunities for efficiency gains related to software development.
TomTom confirmed its revenue outlook for 2026.
($1 = 0.8469 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Matt Scuffham)
TomTom's operating profit (EBIT) in Q1 2026 was 13.8 million euros ($16.3 million).
TomTom's Q1 2026 revenue dropped to 129.2 million euros, down from 140.4 million euros in 2025.
Profit was driven by higher margins and lower operating expenses following an internal reorganization.
TomTom counts Microsoft, Uber, and Volkswagen among its major customers.
TomTom confirmed its revenue outlook for 2026.
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