Nokia (NOKN) AI Stock Analysis

Nokia

(BMV:NOKN)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

AI and Cloud GrowthRapid AI and cloud growth is expanding Nokia’s exposure to data-center connectivity and higher-capacity networks. The combination of 123% sales growth, rising order intake, and demand exceeding supply supports durable customer adoption and strengthens the company’s position in strategic growth markets.

Negative Factors

Weak Cash ConversionThe sharp deterioration in operating and free cash flow shows that reported earnings are currently converting poorly into cash. Near-breakeven FCF can constrain reinvestment, shareholder returns, and balance-sheet flexibility, particularly while working capital and restructuring requirements remain elevated.

Nokia (NOKN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 46.23B
Dividend Yield: 1.89%
Average Volume (3M): 4,710
Price to Earnings (P/E): 55.6
Beta (1Y): -0.40
Revenue Growth: -1.35%
EPS Growth: -17.41%
Country: Mexico
Employees: 78,434
Sector: Technology
Sector Strength: 61
Industry: Communication Equipment

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 Infrastructure,...

Nokia Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q3-2026)|% Change Since:-6.42%|Next Earnings Date:Jan 27, 2027

Earnings Call SentimentPositive

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.

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 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 Risk

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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:NOKN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	81Outperform	$411.45B	31.10	27.39%	1.60%	11.77%	27.65%
CIEN	78Outperform	$45.48B	69.42	22.82%	―	32.57%	367.53%
ERIC	73Outperform	$37.06B	18.67	18.10%	2.78%	3.88%	-16.99%
UI	72Outperform	$34.11B	35.53	85.62%	0.60%	27.22%	34.82%
MSI	68Neutral	$81.35B	38.28	85.76%	0.98%	10.30%	1.37%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

MX:NOKN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:NOKN	Nokia	161.63	32.38	25.05%
CIEN	Ciena Corporation	320.72	131.16	69.19%
CSCO	Cisco	104.51	31.41	42.98%
ERIC	Telefonaktiebolaget LM Ericsson Class B	11.18	1.12	11.14%
MSI	Motorola Solutions	491.53	104.52	27.01%
UI	Ubiquiti Networks Inc	563.81	-206.13	-26.77%

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.

Nokia AI Stock Analysis