Nokia (NYSE:NOK) Issues Earnings Results, Beats Expectations By $0.02 EPS

Nokia (NYSE:NOK) posted its quarterly 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 return on equity of 9.83% and a net margin of 3.49%. The business had revenue of $5.84 billion for the quarter, compared to analysts’ expectations of $5.72 billion. During the same quarter in the prior year, the business earned $0.06 EPS. The firm’s revenue for the quarter was up 9.7% on a year-over-year basis.

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 Stock Performance

Shares of NYSE NOK opened at $8.20 on Friday. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.50 and a quick ratio of 1.22. The stock’s fifty day moving average price is $10.16 and its two-hundred day moving average price is $11.45. Nokia has a one year low of $5.86 and a one year high of $17.45. The firm has a market cap of $47.07 billion, a price-to-earnings ratio of 58.87, a P/E/G ratio of 1.10 and a beta of 1.19.

Analyst Ratings Changes

Several equities analysts have recently weighed in on the stock. UBS Group reissued a “neutral” rating on shares of Nokia in a research report on Wednesday, July 1st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Nokia in a report on Friday, September 4th. Sanford C. Bernstein reiterated a “neutral” rating on shares of Nokia in a research note on Thursday, July 23rd. Jefferies Financial Group reissued a “buy” rating on shares of Nokia in a report on Tuesday, September 29th. Finally, Barclays restated a “sell” rating on shares of Nokia in a research report on Monday, June 29th. Fifteen investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $13.46.

More Nokia News

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: AI and cloud growth was a major earnings catalyst. Nokia reported third-quarter revenue growth of about 10%, while comparable operating profit increased 35%. Sales to AI and cloud customers surged 123%, supported by strong demand for IP Networks and Optical Networks. Nokia Corporation Interim Report for Q3 2026
• Positive Sentiment: Infrastructure results exceeded expectations. Nokia earned $0.10 per share versus the $0.08 consensus estimate and generated $5.84 billion in revenue versus expectations of $5.72 billion. Network Infrastructure revenue rose 15% on a constant-currency basis, led by 43% growth in IP Networks. Nokia third-quarter profit beats expectations
• Positive Sentiment: New AI partnerships could expand Nokia’s long-term opportunity. Nokia is advancing AI-RAN deployments with NVIDIA, Supermicro and Elisa, while a collaboration with Cadence is intended to accelerate electronic-system design on Nokia’s Millennium M2000 supercomputer. Nokia and ICEYE also signed a letter of intent with Ukraine’s Ministry of Defence to explore sovereign satellite communications. Nokia advances AI-RAN toward commercial deployment
• Neutral Sentiment: Analyst sentiment remains constructive but less bullish. Rosenblatt Securities retained a “buy” rating but lowered its price target from $15 to $14, indicating confidence in Nokia’s potential while acknowledging valuation or execution risks.
• Negative Sentiment: Cost inflation and cash-flow concerns overshadowed the results. CEO Justin Hotard said supply pressures represent a structural cost increase, not merely a temporary shortage. Nokia kept its broader outlook but reduced its cash-flow view, while the traditional telecom market is expected to remain flat. The stock also sold off amid weakness across the AI-related technology sector. Why Nokia Sank Today

Nokia Company Profile

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.