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

Key Points

• Nokia beat quarterly expectations: EPS was $0.10 versus the $0.08 consensus, while revenue reached $5.84 billion, up 9.7% year over year and ahead of forecasts.
• AI and cloud networking drove growth: AI and Cloud sales surged 123%, with order intake rising 118%; IP Networks and Optical Networks also posted strong growth, strengthening Nokia’s outlook in hyperscaler and data-center infrastructure.
• Cash-flow and execution concerns weighed on investors: Free cash flow was negative €99 million, restructuring costs are expected to rise, and Nokia lowered its 2026 free-cash-flow conversion outlook. Shares fell 9.6% to $8.37 despite the earnings beat.

Nokia (NYSE:NOK - Get Free Report) issued its quarterly earnings data on Thursday. The technology company reported $0.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.02, FiscalAI reports. The firm had revenue of $5.84 billion during the quarter, compared to the consensus estimate of $5.72 billion. Nokia had a return on equity of 9.83% and a net margin of 3.49%. The business's revenue for the quarter was up 9.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.06 EPS.

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 Down 9.6%

Shares of NYSE NOK traded down $0.89 during mid-day trading on Thursday, reaching $8.37. 55,405,024 shares of the company's stock were exchanged, compared to its average volume of 80,321,031. The business has a fifty day simple moving average of $10.21 and a 200 day simple moving average of $11.46. Nokia has a twelve month low of $5.84 and a twelve 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 firm has a market capitalization of $48.03 billion, a price-to-earnings ratio of 59.82, a PEG ratio of 1.08 and a beta of 1.19.

Wall Street Analyst Weigh In

NOK has been the subject of a number of research reports. Barclays restated a "sell" rating on shares of Nokia in a research note on Monday, June 29th. Jefferies Financial Group reiterated a "buy" rating on shares of Nokia in a research report on Tuesday, September 29th. Weiss Ratings restated a "hold (c)" rating on shares of Nokia in a research report on Friday, September 4th. S&P Equity Research restated a "positive" rating on shares of Nokia in a research report on Thursday, July 30th. Finally, Sanford C. Bernstein restated a "neutral" rating on shares of Nokia in a research report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, five have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $13.57.

Nokia News Summary

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: Profit and revenue exceeded expectations. Nokia reported quarterly EPS of $0.10 versus the $0.08 consensus estimate, while revenue reached $5.84 billion, ahead of the $5.72 billion forecast and up roughly 10% year over year. Comparable operating profit increased 35%. Nokia third-quarter profit beats expectations
• Positive Sentiment: AI and cloud networking are the main growth engine. Network Infrastructure sales increased 15% on a constant-currency basis, led by 43% growth in IP Networks and 18% growth in Optical Networks. Sales to AI and cloud customers surged 123%, while order intake rose 118%, signaling strong demand visibility. Nokia Corporation Interim Report for Q3 2026
• Positive Sentiment: Strategic AI partnerships strengthen Nokia’s positioning. Collaborations with NVIDIA, Super Micro Computer and SoftBank are aimed at deploying AI-RAN and distributed-intelligence platforms, potentially expanding Nokia’s role in telecom and data-center infrastructure. Nokia advances AI-RAN toward commercial deployment
• Neutral Sentiment: Full-year guidance was maintained. The unchanged outlook reduces the risk of a negative revision, but also suggests that management is not raising expectations despite the strong quarter. Nokia Q3 profit rises on AI-driven network demand
• Negative Sentiment: Valuation and execution risks remain. Nokia’s shares have already delivered a substantial multi-year rally, leaving investors focused on whether AI-related growth can translate into sustained cash flow and justify the valuation. Can Nokia Sustain a Cash Flow Discount After Its Run?

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.

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