Nokia Stock Earnings Reports

Nokia reported a solid start to 2026: group net sales grew 4% to EUR 4.5bn, gross profit was ~EUR 2.0bn with gross margin expanding 320 bps, operating profit was EUR 281m (6.2% margin) and free cash flow was EUR 629m. Optical Networks and AI & cloud customers drove most of the momentum: AI & Cloud sales grew 49% and Nokia recorded ~EUR 1bn of new orders in the quarter, with book-to-bill >1 (and well above 1 in Network Infrastructure). Following strong demand and improving supply confidence (including ramp plans for a second indium phosphide fab in San Jose), Nokia materially raised its 2026 growth assumptions for Network Infrastructure to 12–14% (from 6–8%) and for Optical + IP combined to 18–20% (from 10–12%). Management now sees the AI & cloud addressable market growing at a 27% CAGR (2025–2028), up from the 16% previously stated, and expects continued product launches (including new hyperscale multi-rail and a multi-engine optical roadmap) and further design-win traction in IP networks. Mobile Infrastructure showed steady execution (core software +5%, radio deals and AI RAN trials with NVIDIA planned for field trials by year-end) while Technology Licensing remained stable. Margins improved YoY, but Nokia is deliberately investing in R&D, production capacity and go-to-market to capture long-term AI/cloud-driven demand; group guidance range for comparable operating profit remains unchanged (EUR 2.0–2.5bn) and management says they are tracking somewhat above the midpoint. Seasonality notes: Q2 typically lower cash due to incentive payments; management expects H1 to represent ~24–28% of full-year operating profit.