Nokia (NYSE:NOK) Announces Quarterly Earnings Results, Hits Estimates

Key Points

• Q1 results: Nokia reported $0.06 EPS (in line with estimates) and revenue of $5.27B, beating consensus and rising about 2.4% year‑over‑year.
• AI & Optical momentum: AI/cloud sales grew 49% with roughly €1B of new orders, prompting management to raise 2026 Network Infrastructure and Optical+IP growth guidance and cite fast‑tracking Infinera synergies.
• Near‑term risks: Management flagged semiconductor/supply constraints, elongated order cycles, a deliberate 13% decline in Fixed Networks and elevated CapEx/OpEx that could weigh on margins and cash seasonality.

Nokia (NYSE:NOK - Get Free Report) released its quarterly earnings results on Thursday. The technology company reported $0.06 EPS for the quarter, hitting the consensus estimate of $0.06, Zacks reports. The firm had revenue of $5.27 billion for the quarter, compared to analyst estimates of $4.59 billion. Nokia had a return on equity of 8.54% and a net margin of 3.41%.Nokia's revenue for the quarter was up 2.4% on a year-over-year basis. During the same period in the previous year, the company posted $0.03 EPS.

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

• Q1 results: Nokia reported net sales of EUR 4.5bn (+4%), an operating margin of 6.2% and free cash flow of EUR 629m, with gross margin up 320 bps year‑on‑year.
• AI & cloud acceleration: AI/cloud sales grew 49% with EUR 1bn of new AI/cloud orders and book‑to‑bill >1, prompting Nokia to raise 2026 Network Infrastructure growth guidance to 12–14% and Optical+IP to 18–20% while revising the AI/cloud addressable market to a 27% CAGR (2025–28).
• Optical momentum and Infinera integration: Management says Infinera synergies are ahead of plan, Optical Networks delivered 20% sales growth, a new product roadmap was unveiled (multi‑rail amplifier and modular optical engines), and a second indium‑phosphide fab in San Jose is set to ramp later this year to expand capacity.
• Management flagged ongoing risks — semiconductor/supply constraints and elongated order cycles, product‑mix headwinds, a 13% decline in Fixed Networks from deliberate portfolio pruning and elevated investment (CapEx/OpEx) that could weigh on near‑term margins and cash seasonality despite strong Q1 cash.

Nokia Stock Up 1.4%

Shares of NOK traded up $0.15 during trading on Friday, reaching $10.48. The company's stock had a trading volume of 54,364,709 shares, compared to its average volume of 55,420,414. Nokia has a twelve month low of $4.00 and a twelve month high of $10.90. The company has a quick ratio of 1.36, a current ratio of 1.58 and a debt-to-equity ratio of 0.11. The company has a market cap of $60.16 billion, a price-to-earnings ratio of 80.66, a P/E/G ratio of 1.82 and a beta of 0.77. The company has a fifty day moving average of $8.51 and a two-hundred day moving average of $7.13.

Nokia Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 12th. Shareholders of record on Tuesday, April 28th will be given a $0.0468 dividend. This represents a $0.19 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend is Tuesday, April 28th. This is a positive change from Nokia's previous quarterly dividend of $0.04. Nokia's dividend payout ratio is currently 69.23%.

Wall Street Analysts Forecast Growth

Several equities analysts recently commented on NOK shares. Argus raised Nokia to a "hold" rating in a research report on Wednesday, February 11th. Nordea Equity Research raised Nokia from a "hold" rating to a "buy" rating in a research report on Friday. Morgan Stanley assumed coverage on Nokia in a research report on Monday, February 9th. They set an "overweight" rating and a $8.00 price target on the stock. Kepler Capital Markets raised Nokia from a "hold" rating to a "buy" rating in a research report on Wednesday, January 7th. Finally, Santander raised Nokia from a "neutral" rating to an "outperform" rating in a research report on Monday, February 2nd. Ten equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $8.83.

Institutional Investors Weigh In On Nokia

A number of institutional investors have recently made changes to their positions in NOK. Wexford Capital LP bought a new stake in shares of Nokia in the 3rd quarter valued at approximately $29,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Nokia in the 3rd quarter valued at approximately $34,000. CIBC Private Wealth Group LLC increased its holdings in shares of Nokia by 86.1% in the 4th quarter. CIBC Private Wealth Group LLC now owns 5,994 shares of the technology company's stock valued at $39,000 after acquiring an additional 2,773 shares during the last quarter. Barclays PLC bought a new stake in shares of Nokia in the 4th quarter valued at approximately $40,000. Finally, EP Wealth Advisors LLC bought a new stake in shares of Nokia in the 2nd quarter valued at approximately $54,000. 5.28% of the stock is currently owned by institutional investors.

Key Stories Impacting Nokia

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: Q1 results showed a marked AI/cloud revenue lift: comparable operating profit jumped ~54% and the company booked ~€1bn of orders from data‑center/AI customers, driven by Optical Networks and AI & Cloud sales. Nokia Oyj (NOK) Q1 2026 Earnings Call Highlights: Strong AI and Cloud Growth Amid Strategic Shifts
• Positive Sentiment: Management and analysts now see faster Network Infrastructure growth (company guiding ~12–14% and Optical Networks ~18–20% in some notes) and margin expansion potential as AI data‑center buildouts lift high‑margin optical sales. Nokia: Sleeping Giant Boosted By AI
• Positive Sentiment: Street reaction: Northland raised its price target to $13 (from $10), and retail flows pushed the shares to multi‑year highs as traders piled into the AI narrative. Analyst uplift and retail momentum support near‑term upside. Northland Lifts PT on Nokia Oyj (NOK), Cites AI Optical Connectivity Demand Acceleration
• Positive Sentiment: Market coverage and headlines highlight the company’s fiber/optical connectivity wins for hyperscalers — a clear revenue driver tied to the AI capex cycle. Nokia’s Fiber Optic Bet Is Paying Off as AI Hunger Lifts Earnings
• Neutral Sentiment: Q1 EPS broadly matched consensus ($0.06) while reported revenue and comparable profit metrics were stronger; results are interpreted as a beat on sales/profitability but EPS neutrality tempers immediate upside. Nokia (NOK) Q1 earnings / MarketBeat summary
• Neutral Sentiment: CEO commentary flagged a structural risk: Europe may lag the US/China in AI data‑center buildouts — a reminder that addressable market dynamics vary by region. This is longer‑term and not an immediate earnings shock. Europe risks falling behind US, China on AI data centre build-up, Nokia CEO says
• Negative Sentiment: Near‑term caution in company guidance: the Q2 revenue band sits around $5.5–$5.7B versus Street consensus near the top of that band, leaving limited upside to estimates and some execution risk if AI demand normalizes. Nokia Oyj 2026 Q1 - Results - Earnings Call Presentation
• Negative Sentiment: Operational headwinds remain (fixed‑networks softness and semiconductor supply constraints cited), which could limit upside to margins or slow some product rollouts. Nokia Oyj (NOK) Q1 2026 Earnings Call Highlights: Strong AI and Cloud Growth Amid Strategic Shifts

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.

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