Nokia (NYSE:NOK) Posts Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Nokia beat quarterly EPS estimates, reporting $0.08 per share versus the $0.07 consensus. Revenue came in at $5.50 billion, slightly below expectations, but still rose 8.4% year over year.
• AI & Cloud was the biggest growth driver, with sales more than doubling to EUR 446 million and order intake reaching EUR 2.8 billion. Management said demand is being fueled by data-center interconnect and scale-out fabric needs.
• Despite strong operating trends, cash flow remains a concern, as free cash flow was negative EUR 732 million in Q2 and restructuring charges are expected to stay heavy. Nokia also said it remains on track to finish somewhat above the midpoint of its full-year operating profit guidance.

Nokia (NYSE:NOK - Get Free Report) announced its earnings results on Thursday. The technology company reported $0.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.07 by $0.01, Zacks reports. Nokia had a net margin of 4.02% and a return on equity of 9.05%. The business had revenue of $5.50 billion during the quarter, compared to analysts' expectations of $5.57 billion. During the same quarter last year, the company posted $0.04 EPS. The firm's revenue for the quarter was up 8.4% on a year-over-year basis.

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 Trading Down 4.3%

Shares of NYSE NOK traded down $0.45 during midday trading on Thursday, hitting $9.84. The stock had a trading volume of 106,954,182 shares, compared to its average volume of 80,915,508. The firm has a market cap of $56.47 billion, a P/E ratio of 61.66, a price-to-earnings-growth ratio of 1.51 and a beta of 1.17. Nokia has a fifty-two week low of $4.00 and a fifty-two week high of $17.45. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.57 and a quick ratio of 1.32. The company's 50-day simple moving average is $13.56 and its 200 day simple moving average is $10.25.

Analyst Upgrades and Downgrades

NOK has been the topic of several research analyst reports. Barclays reaffirmed an "underweight" rating on shares of Nokia in a research note on Wednesday, April 29th. Argus upgraded shares of Nokia from a "hold" rating to a "buy" rating and set a $15.00 target price for the company in a research note on Monday, April 27th. Danske raised Nokia from a "hold" rating to a "buy" rating in a report on Wednesday, July 1st. Morgan Stanley reaffirmed an "overweight" rating on shares of Nokia in a report on Friday, May 22nd. Finally, Northland Securities set a $20.00 price objective on Nokia in a research report on Wednesday, June 3rd. Thirteen investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $12.57.

Hedge Funds Weigh In On Nokia

Hedge funds have recently added to or reduced their stakes in the company. Wexford Capital LP bought a new stake in Nokia during the 3rd quarter worth about $29,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Nokia during the 3rd quarter worth approximately $34,000. CIBC Private Wealth Group LLC raised its stake 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 worth $39,000 after buying an additional 2,773 shares during the last quarter. Barclays PLC acquired a new position in Nokia in the fourth quarter valued at approximately $40,000. Finally, EP Wealth Advisors LLC acquired a new stake in Nokia during the 2nd quarter worth $54,000. Institutional investors own 5.28% of the company's stock.

Key Nokia News

Here are the key news stories impacting Nokia this week:

• Positive Sentiment: Nokia said Q2 sales rose on a constant-currency basis, with Network Infrastructure up 12% and AI & Cloud customer sales surging 105%, highlighting strong demand tied to data-center and AI spending. Nokia Corporation Report for Q2 and Half Year 2026
• Positive Sentiment: The company beat quarterly EPS estimates at $0.08 versus $0.07 expected and raised its full-year profit outlook, suggesting management sees momentum continuing. Nokia Q2 profit beat on AI demand
• Positive Sentiment: Management said AI and cloud order intake reached €2.8 billion in the quarter and sales in that segment more than doubled, reinforcing the bullish AI narrative around the stock. Nokia says AI, cloud boosted sales in second quarter
• Neutral Sentiment: Nokia also provided recast financial information after reclassifying some businesses as discontinued operations; this is mainly an accounting presentation change and is unlikely to be a direct driver of the stock. Nokia provides recast comparative financial information reflecting the presentation of Fixed Wireless Access CPE and Enterprise Campus Edge businesses as discontinued operations
• Neutral Sentiment: Separately, Nokia and NestAI unveiled AI-enabled command-and-control tools for deployable 5G defense networks, an incremental technology win but not likely a major near-term earnings driver. Nokia HLSE: NOKIA Delivers AI Led Defense Control For Deployable 5G Networks

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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