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

Nokia (NYSE:NOK) announced its earnings results on Thursday. The technology company reported $0.10 EPS for the quarter, topping the consensus estimate of $0.08 by $0.02, FiscalAI reports. The business had revenue of $5.84 billion during the quarter, compared to analysts’ expectations of $5.72 billion. Nokia had a net margin of 3.49% and a return on equity of 9.83%. The firm’s revenue was up 9.7% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.06 earnings per share.

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

NOK stock traded down $0.89 during midday trading on Thursday, reaching $8.37. 55,405,024 shares of the company were exchanged, compared to its average volume of 80,321,031. Nokia has a one year low of $5.84 and a one year high of $17.45. The firm has a market capitalization of $48.03 billion, a price-to-earnings ratio of 59.82, a price-to-earnings-growth ratio of 1.08 and a beta of 1.19. The business has a 50-day moving average price of $10.21 and a two-hundred day moving average price of $11.46. The company has a debt-to-equity ratio of 0.09, a current ratio of 1.50 and a quick ratio of 1.22.

Analyst Ratings Changes

Several brokerages have issued reports on NOK. UBS Group reiterated a “neutral” rating on shares of Nokia in a research note on Wednesday, July 1st. Sanford C. Bernstein restated a “neutral” rating on shares of Nokia in a research note on Thursday, July 23rd. B. Riley Financial assumed coverage on Nokia in a report on Thursday, September 17th. They issued a “buy” rating and a $15.00 price objective for the company. Barclays reaffirmed a “sell” rating on shares of Nokia in a research report on Monday, June 29th. Finally, S&P Equity Research reiterated a “positive” rating on shares of Nokia in a report on Thursday, July 30th. One 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target 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.