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.
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.
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.
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 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.
"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.
($1 = 0.8469 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Matt Scuffham and Milla Nissi-Prussak)
