Nokia (NYSE:NOK) Issues Earnings Results

Nokia (NYSE:NOK) released its earnings results on Thursday. The technology company reported $0.10 earnings per share for the quarter, beating analysts’ consensus estimates of $0.08 by $0.02, FiscalAI reports. Nokia had a net margin of 3.80% and a return on equity of 10.48%. The business had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $5.72 billion. During the same quarter in the prior year, the firm posted $0.06 EPS. The company’s revenue for the quarter was up 9.7% compared to the same quarter last year.

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

• Strong Q3 execution: Nokia’s net sales rose 9% year over year, while operating margin expanded 220 basis points to 11.7%. Management said it is tracking above the midpoint of its full-year comparable operating profit guidance.
• AI and cloud momentum accelerated: AI & Cloud sales increased 123%, with order intake up 118% to €1.5 billion. IP Networks grew 43% and Optical Networks 18%; combined growth for these businesses is now expected at 25%–30% in 2027, although supply constraints remain.
• Nokia highlighted expanding design wins in hyperscaler networking, 800G optical pluggables, Multi-Rail systems and AI-RAN. The company also expects to achieve its €200 million Infinera synergy target by year-end, one year ahead of schedule.
• Cash flow weakened: Q3 free cash flow was negative €99 million, pressured by restructuring payments and higher receivables and inventory. Nokia plans to invest an additional €400 million in working capital and reduced its 2026 free-cash-flow conversion expectation to 35%–55%.
• Restructuring charges are now expected to reach approximately €1.1 billion in 2026, with restructuring-related cash outflows of €800 million–€900 million. The telecom market is expected to remain broadly flat, while Q4 Technology Standards revenue and deal activity are expected to decline from recent levels.

Nokia Trading Up 3.1%

NOK stock traded up $0.24 during mid-day trading on Friday, reaching $8.12. The company’s stock had a trading volume of 84,554,296 shares, compared to its average volume of 74,671,440. Nokia has a 12 month low of $5.86 and a 12 month high of $17.45. The company has a current ratio of 1.50, a quick ratio of 1.22 and a debt-to-equity ratio of 0.09. The business’s 50 day moving average price is $10.10 and its 200 day moving average price is $11.43. The company has a market cap of $46.64 billion, a price-to-earnings ratio of 50.77, a price-to-earnings-growth ratio of 0.94 and a beta of 1.19.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the stock. Sanford C. Bernstein reaffirmed a “neutral” rating on shares of Nokia in a research note on Thursday, July 23rd. JPMorgan Chase & Co. lowered their target price on shares of Nokia from $21.00 to $20.50 and set an “overweight” rating for the company in a research note on Friday. UBS Group reissued a “neutral” rating on shares of Nokia in a research note on Wednesday, July 1st. B. Riley Financial started coverage on shares of Nokia in a report on Thursday, September 17th. They issued a “buy” rating and a $15.00 target price on the stock. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Nokia in a research report on Friday, September 4th. Sixteen research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Nokia presently has a consensus rating of “Moderate Buy” and a consensus target price of $13.41.

Key Stories Impacting Nokia

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: AI and cloud demand accelerated: Third-quarter revenue increased approximately 10% year over year, while comparable operating profit rose 35%. AI and cloud customer sales surged 123%, with IP Networks revenue up 43% and Optical Networks revenue up 18%. Nokia’s Q3 Earnings Beat Estimates on AI & Cloud Strength
• Positive Sentiment: Results exceeded expectations: Nokia reported adjusted earnings of $0.10 per share versus the $0.08 consensus estimate, and revenue of $5.84 billion versus the $5.72 billion forecast. Management also pointed to strong order intake from AI and cloud customers and continued growth potential into 2027. Nokia third-quarter profit beats expectations
• Positive Sentiment: New strategic opportunities: Nokia and ICEYE signed a letter of intent with Ukraine’s Ministry of Defence to explore sovereign satellite communications capabilities, potentially expanding Nokia’s role in defense and connectivity infrastructure. Ukraine partners with Nokia and ICEYE for Starlink alternative
• Neutral Sentiment: Analysts remain constructive but lowered targets: Rosenblatt reduced its price target from $15 to $14 while retaining a Buy rating, and JPMorgan lowered its target from $21 to $20.50 while maintaining an Overweight rating. The cuts suggest analysts still see substantial upside but are adjusting expectations after the selloff. Rosenblatt cuts Nokia price target to $14 but keeps Buy
• Negative Sentiment: Costs and cash flow are the main overhangs: Nokia warned that supply constraints represent a structural cost increase rather than a temporary shortage. Capacity expansion, margin pressure and higher cash requirements are tempering enthusiasm over AI-driven growth.
• Negative Sentiment: Guidance was not raised: Fourth-quarter revenue guidance of $7.1 billion to $7.4 billion broadly brackets the $7.3 billion consensus estimate, while the company maintained its broader outlook. Investors appear to have expected stronger upgrades following the earnings beat. Nokia Q3 Earnings Call Highlights AI Growth and 2027 Outlook
• Negative Sentiment: Market conditions amplified the decline: NOK fell sharply alongside the wider AI and technology sector, causing investors to discount the earnings beat and focus on valuation, profitability and execution risks.

About Nokia

Nokia Oyj is a Finland-based technology company that provides communications networking equipment, software and related services to telecommunications operators, enterprises, governments and other organizations worldwide. Its offerings support fixed and mobile broadband, optical and IP networks, data centers, cloud environments and private wireless communications.

The company’s business activities include mobile network infrastructure, network automation and management software, fiber and broadband access, optical networking, routing, data-center networking, and cloud and network services.