TomTom (ENXTAM:TOM2) Stock Faces EPS Slowdown That Tests New Profitability Narrative

TomTom (ENXTAM:TOM2) has just posted its Q2 2026 numbers, with revenue of €134.6 million and basic EPS of €0.06. Q1 2026 revenue was €129.2 million with EPS of €0.11, giving investors a clear view of how the top and bottom lines are tracking through the year. Over the past few quarters, revenue has moved between €129.2 million and €146.2 million, while basic EPS has ranged from a loss of €0.19 to a profit of €0.11, underlining how earnings have been sensitive to shifting margins. For shareholders, this latest print puts the focus squarely on how sustainably TomTom is converting that revenue base into profit, with margin resilience now a key part of the story.

See our full analysis for TomTom.

With the headline figures on the table, the next step is to set these results against the most widely followed narratives around TomTom to see which stories align with the numbers and which ones start to look stretched.

See what the community is saying about TomTom

TTM profitability now positive

• Over the last 12 months, TomTom generated €35.1 million in net income and basic EPS of €0.28, compared with earlier trailing periods in 2025 that still showed losses and negative EPS.
• Bulls point to this move into profit and five year earnings growth of 56.4% per year. However, the trailing numbers still include a one off €25.8 million loss, so:
  • Consensus narrative highlights that profitability is now in place, but the one off item means last 12 months’ earnings are not a clean guide to underlying profit power.
  • Supporters of the bullish view tend to focus on the positive €35.1 million net income, while critics flag that the one off loss complicates comparisons with prior periods and any simple use of EPS in ratios.

Bulls argue this turn to profitability could be the starting point for stronger earnings over time, but the mixed TTM picture keeps the debate alive on how durable those profits really are. 🐂 TomTom Bull Case

TomTom’s P/E sits below peers

• The stock is trading on a trailing P/E of 14.8x, compared with 21.7x for the wider European Software group and 67.8x for the peer set in the dataset.
• Consensus narrative suggests the lower multiple and positive earnings give valuation appeal, yet slower forecast growth limits how far that argument goes:
  • Revenue is expected to grow about 2.4% per year and earnings about 1.8% per year, both below the cited Dutch market rates of 10.5% and 16.2% per year, so the discount on P/E comes with slower growth attached.
  • Analysts’ balanced view weighs this slower growth against the current €4.16 share price and a 6.75 analyst target, implying upside on these specific inputs but not a high growth profile.

DCF fair value far above price

• A DCF fair value of €11.55 sits well above the current €4.16 share price, meaning the stock trades about 64% below that model estimate on the data provided.
• Bears argue that modest growth projections and earnings quality questions justify caution, and the current fundamentals give them several reference points:
  • Forecast revenue and earnings growth rates in the low single digits, together with the earlier one off €25.8 million loss in the last 12 months, are used to question how much weight to put on a single DCF outcome.
  • The relatively low gap between the current price and the 6.75 analyst target on these inputs gives cautious investors another anchor that is much closer to today’s trading level than the DCF figure.

Skeptics see the wide gap between price and DCF fair value as something to scrutinize carefully rather than accept at face value, given the slower growth profile and earnings history in the data. 🐻 TomTom Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for TomTom on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the split sentiment around TomTom makes you unsure which side to back, move quickly from headline narratives to the underlying figures and form your own view with the 2 key rewards and 1 important warning sign.

See What Else Is Out There

TomTom now has positive earnings, but slower forecast growth, a one off loss in the recent period and questions around earnings quality keep some investors cautious.

If that mix of modest growth and valuation debate leaves you wanting stronger stories elsewhere, compare this with 219 high quality undervalued stocks to quickly spot companies where fundamentals and pricing look more aligned.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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