Nokia (NYSE:NOK) Announces Quarterly Earnings Results

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

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 Down 5.4%

Shares of NYSE NOK opened at $9.72 on Friday. The firm has a fifty day simple moving average of $13.46 and a two-hundred day simple moving average of $10.27. Nokia has a 12 month low of $4.00 and a 12 month high of $17.45. The company has a current ratio of 1.57, a quick ratio of 1.32 and a debt-to-equity ratio of 0.11. The firm has a market capitalization of $55.83 billion, a PE ratio of 60.77, a price-to-earnings-growth ratio of 1.46 and a beta of 1.17.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently commented on the stock. Northland Securities set a $20.00 price target on shares of Nokia in a report on Wednesday, June 3rd. The Goldman Sachs Group upgraded shares of Nokia from a “sell” rating to a “neutral” rating in a research report on Monday, March 30th. Argus raised shares of Nokia from a “hold” rating to a “buy” rating and set a $15.00 price objective for the company in a research note on Monday, April 27th. Wall Street Zen lowered shares of Nokia from a “buy” rating to a “hold” rating in a report on Sunday, May 3rd. Finally, Barclays restated an “underweight” rating on shares of Nokia in a report on Wednesday, April 29th. Thirteen equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $12.57.

Hedge Funds Weigh In On Nokia

Several hedge funds and other institutional investors have recently modified their holdings of NOK. Wexford Capital LP bought a new stake in Nokia during the 3rd quarter valued at approximately $29,000. CIBC Private Wealth Group LLC boosted its position in shares of Nokia by 86.1% during the fourth quarter. CIBC Private Wealth Group LLC now owns 5,994 shares of the technology company’s stock valued at $39,000 after purchasing an additional 2,773 shares in the last quarter. Barclays PLC bought a new stake in shares of Nokia during the fourth quarter valued at approximately $40,000. Caitong International Asset Management Co. Ltd purchased a new stake in Nokia in the third quarter worth $34,000. Finally, Vontobel Holding Ltd. bought a new position in Nokia in the fourth quarter worth $65,000. Hedge funds and other institutional investors own 5.28% of the company’s stock.

Nokia News Roundup

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: Nokia posted Q2 earnings of $0.08 per share, topping estimates, while revenue rose 8% year over year and AI/cloud orders reached about €2.8 billion, signaling strong demand for its network infrastructure and optical businesses. Reuters: Nokia Q2 profit beat on AI demand
• Positive Sentiment: Management said AI and cloud sales more than doubled in the quarter, with network infrastructure growth led by optical and IP networking, reinforcing the view that Nokia is benefiting from data-center buildout. Motley Fool transcript
• Positive Sentiment: Nokia raised its full-year profit outlook and guided for Q3 net sales growth of 3% to 7%, suggesting confidence that momentum from AI infrastructure orders will continue. Seeking Alpha: Nokia outlines Q3 net sales growth
• Neutral Sentiment: Some coverage noted the quarter also featured softer-than-expected revenue and restructuring or supply-chain pressure, so investors may weigh the strong AI order story against execution risks. Yahoo Finance: Nokia says AI, cloud boosted sales

Nokia Company Profile

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.