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
TomTom's reorganization boosts operating profit in Q1
TomTom Reports Strong Q1 2026 Operating Profit Amid Reorganization
By Mathias de Rozario
April 16 (Reuters) - Dutch digital mapping specialist TomTom reported higher than expected operating profit for the first quarter of 2026 on Thursday despite lower revenue, following an internal reorganization.
Financial Performance Overview
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 result of 5.7 million euros.
TomTom's Amsterdam-listed shares rose 2.8% by 0735 GMT.
Drivers of Earnings Growth
TomTom said earnings growth was driven by a higher margin and lower operating expenses after it completed 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.
Reorganization and Workforce Changes
In June 2025, it announced 300 job cuts as part of the reorganization and to embrace artificial intelligence.
Revenue and Market Outlook
The company, which counts Microsoft, Uber and Volkswagen among its customers, recorded lower revenue as an expected shift between old and new contracts is set to have a negative effect this year.
Quarterly revenue dropped to 129.2 million euros, in line with analysts' average estimate of 130 million euros, from 140.4 million euros in 2025.
Future Revenue Projections
"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.
TomTom confirmed its revenue outlook for 2026, as Goddijn said the group saw further opportunities for efficiency gains related to software development.
Additional Information
($1 = 0.8469 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Matt Scuffham and Milla Nissi-Prussak)
