Nokia (NYSE:NOK) Releases Quarterly Earnings Results, Beats Estimates By $0.01 EPS

Nokia (NYSE:NOK) announced its quarterly earnings results on Thursday. The technology company reported $0.08 EPS for the quarter, beating analysts’ consensus estimates of $0.07 by $0.01, Zacks reports. The company had revenue of $5.50 billion during the quarter, compared to analysts’ expectations of $5.57 billion. Nokia had a return on equity of 9.05% and a net margin of 4.02%.Nokia’s revenue was up 8.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.04 EPS.

Here are the key takeaways from Nokia’s conference call:

• Q2 results improved meaningfully, with net sales up 9%, gross margin rising to 46%, and operating margin increasing to 9%. Management said Nokia remains on track to finish somewhat above the midpoint of its full-year operating profit guidance.
• AI & Cloud was the standout growth engine, as sales more than doubled year over year to EUR 446 million and order intake reached EUR 2.8 billion. Management said demand is being driven by data center interconnect and scale-out fabrics, though they cautioned that orders can be lumpy.
• Network Infrastructure performed strongly, with sales up 12% and Optical Networks up 20%, helped by AI-related demand and Infinera integration benefits. Gross margin in the segment improved to 42.7%, and IP Networks also showed solid growth.
• Nokia is pushing major AI-RAN and optical capacity investments, including the launch of its first commercial AI-RAN platform and expansions of indium phosphide manufacturing in the U.S. The company expects AI-RAN pilots by the end of 2026 and commercialization in 2027, while new fab capacity is intended to ease supply constraints.
• Cash flow and restructuring remain near-term drags, with free cash flow negative EUR 732 million in Q2 and full-year free cash flow conversion now expected toward the low end of the 55%-75% range. Nokia also said restructuring charges in 2026 will be about EUR 800 million, even as it works toward EUR 1.2 billion in cumulative cost savings from its broader restructuring program.

Nokia Stock Performance

Nokia stock traded down $0.45 during midday trading on Thursday, reaching $9.84. 106,954,182 shares of the company’s stock were exchanged, compared to its average volume of 80,915,508. The stock’s 50-day simple moving average is $13.56 and its 200 day simple moving average is $10.25. The firm has a market cap of $56.47 billion, a price-to-earnings ratio of 61.66, a P/E/G ratio of 1.51 and a beta of 1.17. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.32 and a current ratio of 1.57. Nokia has a 52 week low of $4.00 and a 52 week high of $17.45.

Key Stories Impacting Nokia

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: Nokia said Q2 sales rose on a constant-currency basis, with Network Infrastructure up 12% and AI & Cloud customer sales surging 105%, highlighting strong demand tied to data-center and AI spending. Nokia Corporation Report for Q2 and Half Year 2026
• Positive Sentiment: The company beat quarterly EPS estimates at $0.08 versus $0.07 expected and raised its full-year profit outlook, suggesting management sees momentum continuing. Nokia Q2 profit beat on AI demand
• Positive Sentiment: Management said AI and cloud order intake reached €2.8 billion in the quarter and sales in that segment more than doubled, reinforcing the bullish AI narrative around the stock. Nokia says AI, cloud boosted sales in second quarter
• Neutral Sentiment: Nokia also provided recast financial information after reclassifying some businesses as discontinued operations; this is mainly an accounting presentation change and is unlikely to be a direct driver of the stock. Nokia provides recast comparative financial information reflecting the presentation of Fixed Wireless Access CPE and Enterprise Campus Edge businesses as discontinued operations
• Neutral Sentiment: Separately, Nokia and NestAI unveiled AI-enabled command-and-control tools for deployable 5G defense networks, an incremental technology win but not likely a major near-term earnings driver. Nokia (HLSE:NOKIA) Delivers AI Led Defense Control For Deployable 5G Networks

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Arete Research raised shares of Nokia from a “neutral” rating to a “buy” rating in a report on Wednesday, April 29th. Argus upgraded Nokia from a “hold” rating to a “buy” rating and set a $15.00 price target for the company in a report on Monday, April 27th. Morgan Stanley reiterated an “overweight” rating on shares of Nokia in a report on Friday, May 22nd. Weiss Ratings restated a “hold (c)” rating on shares of Nokia in a report on Tuesday, June 9th. Finally, JPMorgan Chase & Co. upped their price target on shares of Nokia from $14.00 to $21.00 and gave the company an “overweight” rating in a report on Friday, June 12th. Thirteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $12.57.

Institutional Investors Weigh In On Nokia

Large investors have recently added to or reduced their stakes in the business. Arrowstreet Capital Limited Partnership boosted its position in Nokia by 50.0% during the third quarter. Arrowstreet Capital Limited Partnership now owns 43,424,695 shares of the technology company’s stock worth $208,873,000 after purchasing an additional 14,482,665 shares during the period. Alyeska Investment Group L.P. boosted its holdings in shares of Nokia by 171.0% during the 4th quarter. Alyeska Investment Group L.P. now owns 17,490,101 shares of the technology company’s stock worth $113,161,000 after buying an additional 11,035,002 shares during the period. Goldman Sachs Group Inc. grew its stake in Nokia by 8.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 12,550,274 shares of the technology company’s stock valued at $66,140,000 after buying an additional 1,002,033 shares during the last quarter. Morgan Stanley lifted its position in Nokia by 2.9% during the fourth quarter. Morgan Stanley now owns 11,608,634 shares of the technology company’s stock worth $75,108,000 after acquiring an additional 328,106 shares during the last quarter. Finally, Defiance ETFs LLC acquired a new position in shares of Nokia in the fourth quarter valued at approximately $57,801,000. Institutional investors own 5.28% of the company’s stock.

About Nokia

Nokia Corporation, headquartered in Espoo, Finland, is a global telecommunications and technology company with roots dating back to 1865. Over its long history the company moved from forestry and cable operations into electronics and telecommunications, becoming widely known in the 1990s and 2000s for its mobile phones. In recent years Nokia refocused its business toward network infrastructure, software and technology licensing, and research and development, following the divestiture of its handset manufacturing business and the acquisition of Alcatel‑Lucent in 2016, which brought Bell Labs into its portfolio.

Today Nokia’s core activities center on designing, building and supporting communications networks and related software.