Nokia Stock Earnings Reports

Nokia reported a solid start to 2026 with Q1 net sales up 4% to EUR 4.5bn, operating profit of EUR 281m (6.2% margin) and strong free cash flow of EUR 629m. Optical Networks was the main growth driver (20% sales growth) supported by accelerated AI & cloud demand and early synergy benefits from the Infinera acquisition; Nokia disclosed ~EUR 1bn of AI/cloud-related new orders in Q1 and book-to-bill >1. Management materially increased 2026 growth assumptions for Network Infrastructure to 12–14% (from 6–8%) and for Optical+IP to 18–20% (from 10–12%), citing stronger demand, improved supply confidence and IP design-win momentum. Nokia now estimates its AI & cloud addressable market will grow at a 27% CAGR (2025–2028), implying a 14% CAGR for network infrastructure. Product innovation (next-gen hyperscale multi-rail, a building-block optical engine roadmap) and a second indium phosphide fab in San Jose (ramping later this year) underpin the growth plan. Management is investing in R&D, manufacturing and supply-chain capacity to capture the opportunity; they expect some near-term margin/headwind noise from product mix and full-quarter Infinera costs, but remain on track for their longer-term margin targets (including double-digit optical margin ambition) and reiterate the group-level financial outlook (tracking somewhat above the midpoint of the comparable operating profit range of EUR 2.0–2.5bn). Quarterly seasonality and working-capital timing were noted (Q2 cash typically lower due to incentive payments).