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Nokia
(NYSE:NOK)
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Rating:54Neutral
Price Target:
$8.50
▼(-17.87% Downside)
Action:Reiterated
Date:10/24/26
Overall score reflects solid balance-sheet strength and a generally positive operational/guidance narrative from the latest earnings call, but is held back by sharply weakened TTM free cash flow and clear bearish technicals. A high P/E further limits valuation support despite a modest dividend yield.
Positive Factors
Revenue and Margin Growth
Recent sales growth and substantial operating-margin expansion indicate improving execution and operating leverage across Nokia. If sustained, this combination can strengthen earnings capacity, support reinvestment in strategic businesses, and improve the resilience of the core network portfolio.
Negative Factors
Weak Cash Conversion
The sharp deterioration in operating and free cash flow shows that reported earnings are currently converting poorly into cash. Persistently weak conversion could constrain investment, dividends, and strategic flexibility, while increasing reliance on balance-sheet resources to fund operations.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Growth
Recent sales growth and substantial operating-margin expansion indicate improving execution and operating leverage across Nokia. If sustained, this combination can strengthen earnings capacity, support reinvestment in strategic businesses, and improve the resilience of the core network portfolio.
Read all positive factors
Nokia Key Performance Indicators (KPIs)
Any
Revenue by Segment
Highlights revenue contributions from different business units, indicating which segments drive growth and profitability, and where strategic shifts may be needed.
Highlights revenue contributions from different business units, indicating which segments drive growth and profitability, and where strategic shifts may be needed.
Data provided by:
The Fly
The FlyNokia (NOK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.72B
Dividend Yield2.01%
Average Volume (3M)85.40M
Price to Earnings (P/E)52.9
Beta (1Y)0.66
Revenue Growth9.69%
EPS Growth-8.89%
CountryUS
Employees78,434
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.14
Shares Outstanding5,742,239,700
10 Day Avg. Volume85,128,504
30 Day Avg. Volume85,400,509
Financial Highlights & Ratios
PEG Ratio-0.96
Price to Book (P/B)1.42
Price to Sales (P/S)1.50
P/FCF Ratio20.36
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue2.77
Enterprise Value/Gross Profit6.23
Enterprise Value/Ebitda21.29
Forecast
1Y Price Target
$16.50Price Target Upside59.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.4
Revenue Forecast (FY)$23.55B
Nokia Business Overview & Revenue Model
Company Description
Nokia Oyj stands as a global technology leader, delivering comprehensive network infrastructure and solutions across mobile, fixed, and cloud domains. Its operations are structured into four primary divisions: Mobile Networks, Network Infrastructu...
How the Company Makes Money
Nokia primarily makes money by selling communications network equipment, software, and related services, supplemented by licensing income from its intellectual property. (1) Network infrastructure sales: A large share of revenue comes from contrac...
Nokia Earnings Call Summary
Earnings Call Date:Oct 22, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 28, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall, led by 9% group sales growth, 220 basis points of operating-margin expansion, rapid AI and cloud growth, strong Optical and IP Networks momentum, multiple design wins and an outlook above the midpoint of full-year operating profit guidance. The main challenges were negative free cash flow, increased working-capital needs, restructuring charges, supply constraints, component cost inflation, lower Network Infrastructure gross margin and weakness in Fixed Networks and Core Software. Management nevertheless described the Q3 performance as strong and remained confident in the growth opportunity and improving operating leverage.Positive Updates
Strong Third-Quarter Sales and Operating Margin Expansion
Net sales grew 9% in Q3, while operating margin expanded by 220 basis points to 11.7%. Operating profit was EUR 605 million, supported mainly by higher sales and continued operating leverage across the group.
Negative Updates
Negative Free Cash Flow
Free cash flow was negative EUR 99 million in Q3. Cash generation was impacted by restructuring payments and a further buildup in working capital, including higher receivables and inventory.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Sales and Operating Margin Expansion
Net sales grew 9% in Q3, while operating margin expanded by 220 basis points to 11.7%. Operating profit was EUR 605 million, supported mainly by higher sales and continued operating leverage across the group.
Read all positive updates
Company Guidance
Nokia said Optical Networks and IP Networks are on track to grow somewhat above the 18% to 20% assumption provided for the full year, with these businesses expected to grow between 25% and 30% on a combined basis in 2027; it expects free cash flow conversion for 2026 to be between 35% and 55%, after planning to invest an additional EUR 400 million in working capital, restructuring charges of approximately EUR 1.1 billion in 2026, and restructuring and associated cash outflows between EUR 800 million and EUR 900 million; there is no change to comparable operating profit guidance, and Nokia continues to track above the midpoint of its comparable operating profit guidance range; fourth-quarter net sales are assumed to increase sequentially between 20% and 24%, the market is expected to be flat, pricing is expected to go up, and the company is on track to achieve the EUR 200 million synergy target by the end of this year, 1 year ahead of schedule.Nokia Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
35
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.56B | 19.89B | 19.22B | 21.14B | 23.76B | 22.20B |
| Gross Profit | 9.13B | 8.66B | 8.86B | 8.55B | 10.10B | 8.83B |
| EBITDA | 2.67B | 2.25B | 3.43B | 2.91B | 3.53B | 3.23B |
| Net Income | 781.10M | 651.00M | 1.28B | 665.00M | 4.25B | 1.62B |
Balance Sheet | ||||||
| Total Assets | 38.32B | 37.58B | 39.15B | 39.86B | 42.94B | 40.05B |
| Cash, Cash Equivalents and Short-Term Investments | 4.75B | 6.42B | 8.91B | 8.24B | 9.16B | 9.60B |
| Total Debt | 3.43B | 5.21B | 4.75B | 5.19B | 5.52B | 5.66B |
| Total Liabilities | 16.62B | 16.53B | 18.40B | 19.23B | 21.52B | 22.59B |
| Stockholders Equity | 21.60B | 20.96B | 20.66B | 20.54B | 21.33B | 17.36B |
Cash Flow | ||||||
| Free Cash Flow | 6.21M | 1.47B | 2.02B | 665.00M | 873.00M | 2.06B |
| Operating Cash Flow | 629.51M | 2.07B | 2.49B | 1.32B | 1.47B | 2.63B |
| Investing Cash Flow | -376.58M | -1.40B | -117.00M | 1.04B | -1.88B | -1.79B |
| Financing Cash Flow | -1.15B | -1.61B | -2.00B | -1.50B | -837.00M | -1.21B |
Nokia Technical Analysis
Negative
10.35
Price Trends
10.12
Negative
10.98
Negative
10.21
Negative
Market Momentum
-0.50
Positive
33.08
Neutral
15.39
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOK, the sentiment is Negative. The current price of 10.35 is above the 20-day moving average (MA) of 9.76, above the 50-day MA of 10.12, and above the 200-day MA of 10.21, indicating a bearish trend. The MACD of -0.50 indicates Positive momentum. The RSI at 33.08 is Neutral, neither overbought nor oversold. The STOCH value of 15.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOK.
Nokia Risk Analysis
Nokia disclosed 34 risk factors in its most recent earnings report. Nokia reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 New Risks
1.
We may be unable to realize the anticipated benefits, synergies, cost savings or efficiencies from acquisitions, and we may encounter issues or inefficiencies related to our organizational and operational structure including being unable to successfully implement related business plans. Q4, 2024
Nokia Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $45.42B | 69.32 | 22.82% | ― | 32.57% | 367.53% | |
76 Outperform | $35.28B | 17.99 | 18.10% | 2.92% | 3.88% | -16.99% | |
74 Outperform | $419.89B | 31.70 | 27.39% | 1.57% | 11.77% | 27.65% | |
71 Outperform | $35.56B | 37.01 | 85.62% | 0.58% | 27.22% | 34.82% | |
67 Neutral | $79.74B | 37.53 | 85.76% | 1.00% | 10.30% | 1.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $46.72B | 52.87 | 3.65% | 2.01% | 9.69% | -8.89% |
* Technology Sector Average
NOK
Nokia
8.14
1.87
29.89%
CIEN
Ciena
320.26
137.72
75.45%
CSCO
Cisco Systems
106.50
36.41
51.94%
ERIC
Telefonaktiebolaget LM Ericsson
10.66
1.42
15.42%
MSI
Motorola Solutions
481.83
42.93
9.78%
UI
Ubiquiti Networks
587.42
-153.01
-20.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.