Nokia (NOK) Earnings Date & Reports

Key Takeaways

• Nokia reported Q3 2026 net sales of €5.15 billion, up 10% year over year, beating the FactSet consensus estimate of roughly €5.06 billion.
• Comparable operating profit rose 35% to €605 million, well above the approximately €462 million analysts had expected.
• Net sales to AI & Cloud customers jumped 123% year over year, with €1.5 billion in new orders booked during the quarter.
• Reported diluted earnings per share (EPS) tripled to €0.03, while comparable diluted EPS from continuing operations rose 50% to €0.09.
• The company kept its full-year 2026 comparable operating profit outlook of €2.1 billion to €2.6 billion unchanged, and expects results above the midpoint.
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Earnings Context and Why It Matters

Nokia's third-quarter report offers investors a clear window into whether the telecom equipment maker can convert rising demand for artificial intelligence (AI) networking into durable, profitable growth. After a difficult stretch defined by sluggish spending from traditional telecom operators, the company has pivoted toward data center, cloud, and AI-driven infrastructure customers. This quarter tests that strategy at a critical moment, as hyperscalers and network builders ramp up spending on the high-capacity optical and IP (Internet Protocol) connectivity that AI workloads require. Strong execution here would signal that Nokia is regaining pricing power and operating leverage, while any softness in cash flow or margins could renew concerns about the cost of its transformation.

Reported Results

Nokia delivered net sales of €5,154 million in Q3 2026, up 10% on a reported basis and 9% in constant currency, exceeding the analyst consensus of roughly €5,058 million. Comparable operating profit climbed 35% to €605 million, comfortably beating the approximately €462 million expected, with a comparable operating margin that expanded 220 basis points (bps; one basis point equals 0.01 percentage point) to 11.7%.

Reported figures were weighed down by accelerated restructuring and integration costs. Reported operating profit fell 22% to €196 million, and the reported operating margin declined to 3.8%. Net profit surged 95% to €156 million. Reported diluted EPS from continuing operations rose to €0.03 from €0.01 a year earlier, while comparable diluted EPS increased 50% to €0.09.

Segment performance was led by Network Infrastructure, where net sales grew 15% in constant currency, driven by a 43% jump in IP Networks and an 18% rise in Optical Networks. Mobile Infrastructure net sales rose 5%. The standout was AI & Cloud, where net sales more than doubled, rising 123% year over year.

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Market Reaction and Investor Sentiment

Despite a clear earnings beat, Nokia's shares moved lower following the release, trading down about 3% to €7.98 in Helsinki by midday and around 0.1% lower at $9.24 in overnight New York trading. The muted-to-negative reaction reflects investor focus on areas where the results were less reassuring. Free cash flow turned negative during the quarter, a key concern given the company's heavy investments in working capital and restructuring. A modest decline in comparable gross margin also drew attention, as product mix shifts and ramp-up costs in high-growth segments pressured profitability. Still, sentiment remains supported by accelerating AI & Cloud momentum, the company's unchanged full-year outlook, and faster-than-expected progress on integrating the Infinera acquisition.

Forward Outlook and Key Factors to Monitor

Nokia reaffirmed its full-year 2026 comparable operating profit guidance of €2.1 billion to €2.6 billion and indicated it expects to land above the midpoint of that range. Management also guided for a typically strong fourth quarter, assuming a 20% to 24% quarter-over-quarter increase in group net sales.

Investors should watch several factors closely in the coming quarters. First, the pace of AI & Cloud order conversion into revenue will be critical, particularly whether the €1.5 billion in new Q3 orders translates into sustained sales growth. Second, cash flow generation remains a focal point after negative free cash flow this quarter, driven by an additional €400 million planned investment in working capital to secure supply.

Third, the Infinera integration is now expected to complete by the end of 2026, one year ahead of schedule, with €200 million in net synergies — a milestone that could shape both cost structure and optical networking competitiveness. Finally, management expects combined Optical and IP Networks revenue to grow 25% to 30% in 2027, a forecast that will be tested against broader demand for AI infrastructure. Margin trends and restructuring costs will also remain key indicators of whether Nokia's growth is translating into durable profitability.

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