Nokia Oyj Stock Earnings Reports

Nokia delivered a solid start to 2026: net sales rose 4% to EUR 4.5bn, gross profit was ~EUR 2bn (gross margin +320 bps), operating profit EUR 281m (6.2% margin, +200 bps) and free cash flow EUR 629m. AI & cloud momentum is a major driver—AI & cloud sales grew 49% and the company recorded ~EUR 1bn of new orders (book-to-bill >1). Management raised 2026 growth assumptions for Network Infrastructure to 12–14% (from 6–8%) and for Optical + IP Networks to 18–20% (from 10–12%), reflecting stronger demand and improving supply confidence. Key product and capacity actions: new hyperscale multi-rail optical product shipping later this year, a building-block optical roadmap targeting 2027 volume shipments, and the San Jose indium phosphide fab expected to ramp later in 2026. Integration with Infinera is ahead of plan and already helping Optical margins; long-term target remains double-digit Optical operating margin. Group guidance (comparable operating profit EUR 2.0–2.5bn) is unchanged and management says they are currently tracking somewhat above the midpoint. Near-term notes: Q2 sales expected to rise sequentially 5–9%; H1 operating profit expected to be ~24–28% of full year; lead times in Optical broadly ~12–18 months; supply-chain and semiconductor constraints remain a risk and management is investing in capacity and the supply chain (CapEx guidance remains ~EUR 900m–1.0bn). Management emphasizes prioritizing profitable, higher‑margin customer segments (e.g., hyperscalers, AI & cloud) and being disciplined in lower-margin fixed/CPE business.