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Nokia
(NYSE:NOK)
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Rating:58Neutral
Price Target:
$11.00
▲(6.28% Upside)
Action:Reiterated
Date:07/24/26
NOK scores in the mid range primarily due to solid balance-sheet strength and improving operating momentum highlighted in the latest earnings call, partially offset by materially weaker recent cash-flow performance. The technical setup is bearish (below key moving averages with negative MACD), and valuation is a headwind given the high P/E and modest dividend yield.
Positive Factors
Conservative balance sheet
Nokia’s low leverage and substantial equity cushion provide financial resilience through telecom investment cycles. This supports continued research, product development, capacity investment, and strategic execution while reducing dependence on external financing when operating conditions weaken.
Negative Factors
Weak and volatile cash generation
Negative quarterly free cash flow and lower expected conversion reduce confidence that reported operating gains will consistently translate into cash. Persistent volatility could constrain internally funded investment, increase reliance on working-capital management, and make earnings quality less dependable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Nokia’s low leverage and substantial equity cushion provide financial resilience through telecom investment cycles. This supports continued research, product development, capacity investment, and strategic execution while reducing dependence on external financing when operating conditions weaken.
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
$57.93B
Dividend Yield1.61%
Average Volume (3M)76.61M
Price to Earnings (P/E)71.1
Beta (1Y)0.60
Revenue Growth13.04%
EPS Growth-24.13%
CountryUS
Employees78,434
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.12
Shares Outstanding5,742,239,700
10 Day Avg. Volume96,095,124
30 Day Avg. Volume76,608,494
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$16.83Price Target Upside62.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.39
Revenue Forecast (FY)$23.68B
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:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presents strong commercial momentum—notably double‑digit growth in Network Infrastructure and >100% year‑on‑year growth in AI & Cloud sales—with margin expansion and multiple strategic product launches (AI RAN) and manufacturing investments. Offsetting risks include a negative free cash flow quarter, sizable restructuring and one‑time charges (~EUR 800m), supply‑chain constraints and order lumpiness (only ~50% of Q2 AI orders expected to convert within 12 months). Management remains confident on operating profit guidance (tracking somewhat above midpoint) and has significant net cash (EUR 2.8bn), but near‑term cash and margin phasing and execution on capacity ramps are key watch items.Positive Updates
Revenue and Margin Expansion
Net sales grew 9% in Q2 FY2026; gross margin expanded 70 basis points to 46%; operating margin expanded 70 basis points to 9%.
Negative Updates
Negative Free Cash Flow and Working Capital Buildup
Free cash flow was negative EUR 732 million in Q2 (quarter typically weakest for cash due to employee incentives); management reports some working capital increase and expects to track toward the low end of FCF conversion guidance (55%–75%).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Margin Expansion
Net sales grew 9% in Q2 FY2026; gross margin expanded 70 basis points to 46%; operating margin expanded 70 basis points to 9%.
Read all positive updates
Company Guidance
The company left its full‑year comparable operating profit guidance operationally unchanged and said it is tracking somewhat above the midpoint of the range; for Q3 it expects sequential net sales to rise 3–7% and operating profit to be broadly similar to Q2 (with mobile infrastructure gross margin phased to about 44–46% in Q3 before improving in Q4). Key numbers from the quarter: net sales +9% YoY, gross margin 46% (+70 bps), operating margin 9% (+70 bps), operating profit €434m, free cash flow negative €732m and net cash €2.8bn. AI & Cloud sales more than doubled to €446m with order intake of €2.8bn (about half of that expected to convert to revenue within 12 months). Segment and program metrics: network infrastructure sales +12% (optical +20%, IP +16%), fixed networks −2%, optical line terminal sales +18%; NI gross margin 42.7% (+240 bps) and NI operating margin 8.1%; the company has achieved €1.2bn gross cost savings to date and expects ~€800m of restructuring charges in 2026 (including ~€350m China integration charges recognized by end‑2026 and ~€200m of new European efficiency charges). Cash conversion is expected toward the low end of the 55–75% free cash flow conversion assumption.Nokia Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.27B | 19.89B | 19.22B | 21.14B | 23.76B | 22.20B |
| Gross Profit | 9.00B | 8.66B | 8.86B | 8.55B | 10.10B | 8.83B |
| EBITDA | 2.15B | 2.25B | 3.43B | 2.91B | 3.53B | 3.23B |
| Net Income | 708.00M | 651.00M | 1.28B | 665.00M | 4.25B | 1.62B |
Balance Sheet | ||||||
| Total Assets | 37.28B | 37.58B | 39.15B | 39.86B | 42.94B | 40.05B |
| Cash, Cash Equivalents and Short-Term Investments | 5.13B | 6.42B | 8.91B | 8.24B | 9.16B | 9.60B |
| Total Debt | 3.36B | 5.21B | 4.75B | 5.19B | 5.52B | 5.66B |
| Total Liabilities | 15.98B | 16.53B | 18.40B | 19.23B | 21.52B | 22.59B |
| Stockholders Equity | 21.20B | 20.96B | 20.66B | 20.54B | 21.33B | 17.36B |
Cash Flow | ||||||
| Free Cash Flow | 536.00M | 1.47B | 2.02B | 665.00M | 873.00M | 2.06B |
| Operating Cash Flow | 1.14B | 2.07B | 2.49B | 1.32B | 1.47B | 2.63B |
| Investing Cash Flow | -285.00M | -1.40B | -117.00M | 1.04B | -1.88B | -1.79B |
| Financing Cash Flow | -1.33B | -1.61B | -2.00B | -1.50B | -837.00M | -1.21B |
Nokia Technical Analysis
Negative
10.35
Price Trends
10.05
Positive
11.81
Negative
9.93
Positive
Market Momentum
<0.01
Positive
46.72
Neutral
23.64
Neutral
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 below the 20-day moving average (MA) of 10.38, above the 50-day MA of 10.05, and above the 200-day MA of 9.93, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 23.64 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $421.62B | 32.03 | 27.39% | 1.54% | 11.77% | 27.65% | |
71 Outperform | $30.95B | 12.42 | 23.57% | 3.49% | 2.72% | 56.42% | |
71 Outperform | $33.85B | 35.76 | 85.62% | 0.60% | 27.22% | 34.82% | |
69 Neutral | $50.33B | 76.15 | 22.82% | ― | 32.57% | 367.53% | |
67 Neutral | $73.83B | 34.77 | 85.76% | 1.08% | 10.30% | 1.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $57.93B | 71.14 | 4.55% | 1.61% | 13.04% | -24.13% |
* Technology Sector Average
NOK
Nokia
10.14
5.39
113.52%
CIEN
Ciena
351.82
200.10
131.89%
CSCO
Cisco Systems
107.63
40.27
59.80%
ERIC
Telefonaktiebolaget LM Ericsson
9.15
0.98
12.01%
MSI
Motorola Solutions
445.97
-5.72
-1.27%
UI
Ubiquiti Networks
567.53
-103.12
-15.38%
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.