Nokia (NOK)
NYSE:NOK
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Nokia
(NYSE:NOK)
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Rating:67Neutral
Price Target:
$16.50
â–²(60.04% Upside)
Action:Downgraded
Date:04/30/26
The score is driven by improving operating momentum from the latest earnings call (raised Network Infrastructure/Optical guidance and strong Q1 cash generation) and constructive technical trend, tempered by only moderate underlying financial profitability/cash-flow momentum and a weak valuation profile due to the very high P/E and modest yield.
Positive Factors
Strong free cash flow and net cash position
Sizable quarterly free cash flow and a net cash position provide durable financial flexibility. This supports sustained R&D, targeted CapEx (fab ramp), working-capital buffers and potential M&A, reducing refinancing risk and allowing multi‑year strategic investments without degrading liquidity.
Negative Factors
Modest profitability and low returns
Despite strong revenue rebound, margins and ROE remain subdued, limiting earnings power and shareholder returns. Persistent low operating profitability reduces ability to convert top‑line growth into durable free cash flow and constrains internal funding for long‑term initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow and net cash position
Sizable quarterly free cash flow and a net cash position provide durable financial flexibility. This supports sustained R&D, targeted CapEx (fab ramp), working-capital buffers and potential M&A, reducing refinancing risk and allowing multi‑year strategic investments without degrading liquidity.
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
$86.71B
Dividend Yield2.26%
Average Volume (3M)115.68M
Price to Earnings (P/E)67.7
Beta (1Y)0.55
Revenue Growth12.83%
EPS Growth9.07%
CountryUS
Employees78,434
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.14
Shares Outstanding5,742,239,700
10 Day Avg. Volume112,444,916
30 Day Avg. Volume115,679,641
Financial Highlights & Ratios
PEG Ratio-0.88
Price to Book (P/B)1.42
Price to Sales (P/S)1.50
P/FCF Ratio20.36
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue3.41
Enterprise Value/Gross Profit7.72
Enterprise Value/Ebitda30.47
Forecast
1Y Price Target
$13.13Price Target Upside27.35% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.39
Revenue Forecast (FY)$24.43B
Nokia Business Overview & Revenue Model
Company Description
Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide. The company operates through four segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. It offers products and services for r...
How the Company Makes Money
Nokia primarily makes money by selling telecommunications network infrastructure and associated software and services to operators and enterprises. Key revenue streams include: (1) Network equipment sales—hardware and software for mobile networks ...
Nokia Earnings Call Summary
Earnings Call Date:Apr 23, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call emphasized strong execution in Q1 with notable revenue and margin expansion, robust free cash flow, outsized AI & cloud demand (49% growth) and a significant upgrade to Network Infrastructure/Optical guidance. Management acknowledged supply constraints, order elongation and near-term margin/seasonality headwinds, but reported Infinera synergies ahead of plan and committed investments (fab and product roadmap) to capture a structural AI-driven market expansion. Overall, the positives — raised guidance, strong Optical performance, large new orders, margin improvement and healthy cash generation — outweigh the near-term operational and timing challenges.Positive Updates
Group Revenue and Margin Expansion
Net sales grew 4% year-on-year to EUR 4.5 billion. Gross profit was EUR 2.0 billion, with gross margin expanding 320 basis points to 45.5%. Operating profit was EUR 281 million, with operating margin improving by 200 basis points to 6.2%.
Negative Updates
Fixed Networks Decline
Fixed Networks sales declined 13% in Q1 as Nokia pursues a portfolio strategy to focus on higher-margin products; consumer premise (CPE) reductions contributed to the decline.
Read all updates
Q1-2026 Updates
Positive
Negative
Group Revenue and Margin Expansion
Net sales grew 4% year-on-year to EUR 4.5 billion. Gross profit was EUR 2.0 billion, with gross margin expanding 320 basis points to 45.5%. Operating profit was EUR 281 million, with operating margin improving by 200 basis points to 6.2%.
Read all positive updates
Company Guidance
Nokia left its group-level 2026 financial outlook unchanged but said it is tracking somewhat above the midpoint of comparable operating profit guidance of EUR 2.0–2.5 billion; Q1 actuals were EUR 4.5 billion net sales, 6.2% operating margin, EUR 629 million free cash flow and EUR 3.8 billion net cash. Management raised Network Infrastructure 2026 growth guidance to 12–14% (from 6–8%) and now targets Optical + IP Networks growth of 18–20% (up from 10–12%); they expect Q2 net sales to increase sequentially by 5–9%, Q2 to represent 12–16% of full‑year operating profit (implying H1 at 24–28% of full‑year operating profit), and Mobile Infrastructure net sales to be largely flat for the year with margin seasonality (weaker in Q2–Q3, stronger in Q4). They also highlighted market assumptions underpinning the upside: AI & cloud addressable market now modeled at a 27% CAGR for 2025–2028 (network‑infrastructure addressable market ~14% CAGR), hyperscaler CapEx expectations rising to >$700 billion in 2026, and AI traffic at ~20% (~80 exabytes/month).Nokia Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
74
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.00B | 19.89B | 19.22B | 21.14B | 23.76B | 22.20B |
| Gross Profit | 8.82B | 8.66B | 8.86B | 8.55B | 10.10B | 8.83B |
| EBITDA | 2.23B | 2.25B | 3.43B | 2.91B | 3.53B | 3.23B |
| Net Income | 796.00M | 651.00M | 1.28B | 665.00M | 4.25B | 1.62B |
Balance Sheet | ||||||
| Total Assets | 37.29B | 37.58B | 39.15B | 39.86B | 42.94B | 40.05B |
| Cash, Cash Equivalents and Short-Term Investments | 6.12B | 6.42B | 8.91B | 8.24B | 9.16B | 9.60B |
| Total Debt | 3.33B | 5.21B | 4.75B | 5.19B | 5.52B | 5.66B |
| Total Liabilities | 16.01B | 16.53B | 18.40B | 19.23B | 21.52B | 22.59B |
| Stockholders Equity | 21.18B | 20.96B | 20.66B | 20.54B | 21.33B | 17.36B |
Cash Flow | ||||||
| Free Cash Flow | 1.37B | 1.47B | 2.02B | 665.00M | 873.00M | 2.06B |
| Operating Cash Flow | 1.96B | 2.07B | 2.49B | 1.32B | 1.47B | 2.63B |
| Investing Cash Flow | -812.00M | -1.40B | -117.00M | 1.04B | -1.88B | -1.79B |
| Financing Cash Flow | -1.62B | -1.61B | -2.00B | -1.50B | -837.00M | -1.21B |
Nokia Technical Analysis
Positive
10.31
Price Trends
11.35
Positive
9.27
Positive
7.42
Positive
Market Momentum
1.14
Positive
60.31
Neutral
61.57
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOK, the sentiment is Positive. The current price of 10.31 is below the 20-day moving average (MA) of 14.07, below the 50-day MA of 11.35, and above the 200-day MA of 7.42, indicating a bullish trend. The MACD of 1.14 indicates Positive momentum. The RSI at 60.31 is Neutral, neither overbought nor oversold. The STOCH value of 61.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $467.61B | 39.82 | 25.14% | 2.09% | 9.21% | 25.97% | |
72 Outperform | $42.88B | 15.91 | 25.11% | 2.51% | 4.40% | 1595.74% | |
70 Outperform | $68.31B | 31.99 | 90.39% | 1.18% | 8.32% | 2.54% | |
69 Neutral | $50.70B | -368.24 | -0.64% | 2.17% | 15.04% | -108.60% | |
67 Neutral | $86.71B | 67.71 | 5.06% | 2.26% | 12.83% | 9.07% | |
62 Neutral | $36.01B | 37.51 | 101.45% | 0.49% | 33.34% | 71.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
NOK
Nokia
14.84
9.63
184.89%
CSCO
Cisco Systems
120.42
58.01
92.94%
ERIC
Telefonaktiebolaget LM Ericsson
13.06
4.70
56.18%
MSI
Motorola Solutions
403.28
-11.36
-2.74%
UI
Ubiquiti Networks
583.86
189.95
48.22%
HPE
Hewlett Packard Enterprise
43.04
26.13
154.49%
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.