TomTom (0MKS) AI Stock Analysis

Top Page

TomTom

(LSE:0MKS)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Very strong gross marginsGross margins near 90% indicate that TomTom’s digital content and software model can generate substantial contribution from each additional unit of revenue. A richer mix of these products can support operating leverage and help sustain profitability even while the company invests in growth initiatives.

Negative Factors

Declining revenue and contract phase-outsRevenue contraction across the group indicates that TomTom’s current growth base remains under pressure, particularly as contracts phase out in automotive and enterprise. The enterprise phase-out continues for another three quarters, creating a prolonged headwind before new wins can fully offset lost business.

TomTom (0MKS) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: EUR 620.13M
Dividend Yield: ―
Average Volume (3M): 21.00K
Price to Earnings (P/E): 14.7
Beta (1Y): 0.90
Revenue Growth: -7.40%
EPS Growth: ―
Country: UK
Employees: 3,300
Sector: Technology
Sector Strength: 61
Industry: Software - Application

TomTom Business Overview & Revenue Model

Company Description

TomTom N.V., a Dutch company established in Amsterdam in 1991, is a global provider of navigation and location-based products and services. The company operates through two primary divisions: Location Technology and Consumer. Its offerings include a...

TomTom Earnings Call Summary

Earnings Call Date:Oct 14, 2026(Q3-2026)|% Change Since:-3.47%|Next Earnings Date:Feb 03, 2027

Earnings Call SentimentPositive

The call was predominantly positive. TomTom reported improved gross margin, operating profitability, stronger cash generation, a solid net cash position, and a higher full-year operating margin outlook. Management also highlighted strategic opportunities in automated driving, enterprise location intelligence, AI integrations, and partnerships with DeepRoute.ai and Microsoft. These positives were tempered by a 6% group revenue decline, declines across automotive, enterprise, and consumer revenue, ongoing customer contract phase-outs, approximately 200 affected roles, and an upcoming EUR 15 million restructuring charge. AI monetization was described as an early-stage opportunity rather than an established revenue contributor.

Positive Updates

Strategic Reorganization Focused on Growth Markets

TomTom reorganized around three divisions: automated driving, location intelligence for enterprises, and navigation. The company said the structure is intended to sharpen focus, accelerate innovation, respond faster to customer needs, expand the customer base, and support sustainable growth. Navigation remains the backbone of the business, generating most revenue and supported by a strong backlog.

Negative Updates

Group Revenue Declined Year-on-Year

Third-quarter group revenue was EUR 129 million, down 6% versus last year. Management said the decline was in line with expectations and guidance.

Company Guidance

For 2026, TomTom expects group revenue of EUR 505 million-EUR 530 million, Location Technology revenue of EUR 450 million-EUR 470 million, and an operating margin of around 4%, including a restructuring charge of approximately EUR 15 million expected in the fourth quarter; excluding this one-off charge, operating margin is expected to be around 7% for the full year, with annualized savings for the organizational realignment estimated at approximately EUR 21 million. In the fourth quarter, apart from the EUR 15 million, full OpEx is expected to be slightly lower than what was reported in Q3 sequentially. For 2027, the company reiterates expectations of Location Technology revenue growth, supported by increasing gross margin and a more efficient cost base; the enterprise customer contract phase-out will take another three quarters to be fully phased out, although the exact quantity is not something that can be disclosed.

TomTom Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:0MKS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NL:ADYEN	75Outperform	EUR 26.21B	23.16	20.11%	―	16.73%	12.21%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NL:CMCOM	49Neutral	EUR 203.98M	-29.24	-26.35%	―	-5.42%	83.35%
NL:MTRK	39Underperform	EUR 105.15M	-8.27	―	―	0.08%	-2.81%

* Technology Sector Average

Performance Comparison

GB:0MKS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0MKS	Tomtom Nv	3.67	-1.50	-29.08%
NL:ADYEN	Adyen NV	826.90	-610.10	-42.46%
NL:CMCOM	CM.com N.V.	6.14	1.94	46.19%
NL:MTRK	MotorK PLC	2.15	-2.19	-50.46%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

TomTom AI Stock Analysis