NEWSCENTRAL reports that TomTom, one of the leading developers of mapping technologies and GPS navigation solutions, has seen its stock drop by 10% after the company announced its revenue forecast for 2026, which fell short of analysts’ expectations. According to TomTom, the company expects revenue to range from 495 million to 555 million euros, significantly lower than the consensus forecast by analysts. This forecast, which reflects the completion of several old contracts and the transition to new agreements that, according to management, will not yield immediate growth, caused TomTom’s stock to fall.
In 2025, TomTom reported a 3% decrease in revenue, totaling 555 million euros, which was lower than the expected 561 million euros. This decline was attributed to the drop in sales from old contracts that are gradually phasing out. As a result, TomTom’s stock dropped by over 10% at the start of trading on the Amsterdam Stock Exchange. This sharp decline in the company’s stock attracted attention from investors and analysts tracking the GPS navigation market.
The current results are primarily linked to a transition period, during which old contracts can no longer generate the same sales volume, and new contracts have not yet started producing substantial results. CEO Harold Goddijn stated in an interview that TomTom expects a temporary decline in 2026, but sees significant potential for the future, especially in 2027 when the company expects to begin benefiting from new contracts.
However, despite the challenges associated with this transition, NEWSCENTRAL believes that TomTom is actively developing new opportunities. In the automotive sector, where most of the new contracts are entering an active phase, the company is expected to see significant growth in its order portfolio. By the end of 2025, the order volume in this sector is expected to reach a record 2.4 billion euros. This substantial amount should provide stable growth in 2027 and beyond, while also strengthening TomTom’s position in the automotive technology market.
Moreover, TomTom is securing important contracts that should lay the foundation for future growth. Before the CES 2026 exhibition, the company signed agreements with Amazon for the integration of artificial intelligence into its services, as well as with Uber and Volkswagen. These deals should help the company expand its capabilities and strengthen its position in emerging technological sectors, such as artificial intelligence and automotive technology.
Analyzing the current results, it is worth noting that despite the decline in revenue, TomTom’s operating profit in 2025 was 1.6 million euros, slightly below analysts’ forecasts. However, it is important to note that the company completed a major optimization of its business processes, which increased efficiency and productivity. These steps are expected to lead to positive growth in the coming years, with the operating margin projected to rise from 0% to over 3% in 2026.
Against this backdrop, NEWSCENTRAL believes that the company will face challenges in the coming months, but its long-term position will remain strong. The company asserts that although 2026 results will be lower than expected, a recovery is expected starting in 2027, driven by revenue growth from new contracts. This is also supported by promising deals in the automotive sector and artificial intelligence, which could become the main drivers of TomTom’s growth in the coming years.
Liam Cortez, an analyst on visual systems at NEWSCENTRAL, notes that TomTom’s shift to automotive technologies and new innovations in visual systems and mapping presents excellent growth opportunities in the long term. Despite temporary difficulties, the company continues to develop new areas, providing hope for a significant recovery in its market position.
NEWS CENTRAL forecasts that despite short-term challenges, TomTom’s long-term prospects remain positive. The company will likely overcome the transition period soon, and its revenue will grow due to strengthened positions in the automotive sector and successful integration of new technologies, such as artificial intelligence.