Nokia (NOK)
NYSE:NOK
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Nokia
(NYSE:NOK)
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Rating:63Neutral
Price Target:
$9.00
▲(9.09% Upside)
Action:ReiteratedDate:03/18/26
The score is supported by a resilient financial foundation (manageable leverage, positive free cash flow) and constructive technical trend signals. It is held back by weakening operating performance (declining revenue and 2025 margin/ROE compression) and an expensive valuation (high P/E with modest yield), while the earnings call adds moderate support via optimistic multi-year targets tempered by near-term cost and seasonality headwinds.
Positive Factors
Strong cash generation and net cash
Consistent positive operating cash flow and high FCF conversion provide durable financial flexibility. A net cash position of EUR 3.4bn reduces refinancing risk, funds capex for optical manufacturing, and underpins the ability to absorb cyclical telecom spending shocks or invest in strategic priorities over the next 2–6 months.
Negative Factors
Top-line trend weakness
A multi-year revenue decline signals secular or market-share headwinds that impair scale economics. Persistent top-line weakness limits operating leverage, constrains reinvestment capacity, and makes margin and earnings targets harder to sustain absent clear, sustained demand recovery or successful repositioning.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and net cash
Consistent positive operating cash flow and high FCF conversion provide durable financial flexibility. A net cash position of EUR 3.4bn reduces refinancing risk, funds capex for optical manufacturing, and underpins the ability to absorb cyclical telecom spending shocks or invest in strategic priorities over the next 2–6 months.
Read all positive factors
Nokia (NOK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.63B
Dividend Yield2.26%
Average Volume (3M)51.08M
Price to Earnings (P/E)49.4
Beta (1Y)0.38
Revenue Growth5.05%
EPS Growth115.92%
CountryUS
Employees78,434
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.19
Shares Outstanding5,742,239,700
10 Day Avg. Volume60,457,738
30 Day Avg. Volume51,079,663
Financial Highlights & Ratios
PEG Ratio-0.95
Price to Book (P/B)1.42
Price to Sales (P/S)1.56
P/FCF Ratio21.19
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue2.04
Enterprise Value/Gross Profit4.86
Enterprise Value/Ebitda20.17
Forecast
1Y Price Target
$7.30Price Target Upside-11.52% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.37
Revenue Forecast (FY)$23.92B
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 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 Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism. Nokia reported modest revenue growth, strong order momentum in Optical and AI & Cloud, multiple design wins and a solid cash position, and it set clear multi-year targets and strategic reorganizations (Infinera acquisition, Mobile Infrastructure, Nokia Defense). At the same time, the company faces near-term margin pressure from growth investments and acquisition/integration costs, restructuring cash outflows, Q1 seasonality headwinds, a notable decline and impairment in Nokia Technologies, and regional/contract-related pressures (e.g., North America). Overall the positives — strategic positioning for AI & cloud, product ramps, design wins, and healthy cash conversion — outweigh the near-term transitional challenges and costs.Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 net sales of EUR 6.1 billion, up 3% year-over-year; full-year 2025 net sales EUR 19.9 billion, with full-year operating profit of EUR 2.0 billion (slightly above midpoint of guidance).
Negative Updates
Operating Margin Pressure and Short-Term Profit Impact
Q4 operating margin 17.3%, 90 basis points below prior year, driven by increased investments in growth areas (including costs related to the Infinera acquisition) and new product ramp effects.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Q4 net sales of EUR 6.1 billion, up 3% year-over-year; full-year 2025 net sales EUR 19.9 billion, with full-year operating profit of EUR 2.0 billion (slightly above midpoint of guidance).
Read all positive updates
Company Guidance
Nokia guided 2026 operating profit of EUR 2.0–2.5 billion, saying Network Infrastructure growth in 2026 should be in line with its 2025–2028 targets (6–8% CAGR overall and 10–12% for Optical+IP) and that Network Infrastructure operating margin should expand toward 13–17% by 2028 (versus 9.5% in 2025); Mobile Infrastructure is targeted to deliver at least EUR 1.5 billion of operating profit in 2026 (consistent with 2025), Portfolio Businesses (2025: EUR 850 million net sales, EUR 97 million operating loss) are expected to show a lower operating loss in 2026, and Group Common costs are forecast at ~EUR 150 million (vs EUR 190 million in 2025). Additional modelling assumptions include comparable financial income/expense of +EUR 50–150 million, a comparable tax rate around 26–27% with ~EUR 500 million of cash tax outflows, CapEx of EUR 900–1,000 million (to expand optical manufacturing), free cash flow conversion of 65–75% (2025: 72%), end‑Q4 net cash of EUR 3.4 billion, NSB integration run‑rate cost synergies of ~EUR 200 million with integration costs of ~EUR 350–400 million over 24–36 months, an expectation that Q1 2026 net sales will fall somewhat more than the historical ~24% sequential seasonal decline, and FX assumptions around USD/EUR ~1.18 (c. EUR 50 million operating profit sensitivity per EUR 0.02 move, ~half hedged).Nokia Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
68
Positive
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 19.10B | 19.22B | 21.14B | 24.91B | 22.20B |
| Gross Profit | 8.04B | 8.86B | 8.69B | 10.22B | 8.83B |
| EBITDA | 1.94B | 3.43B | 2.87B | 3.55B | 2.68B |
| Net Income | 604.18M | 1.28B | 665.00M | 4.25B | 1.62B |
Balance Sheet | |||||
| Total Assets | 37.58B | 39.15B | 39.86B | 42.94B | 40.05B |
| Cash, Cash Equivalents and Short-Term Investments | 6.42B | 8.91B | 8.24B | 9.16B | 9.60B |
| Total Debt | 5.21B | 4.75B | 5.19B | 5.52B | 5.66B |
| Total Liabilities | 16.53B | 18.40B | 19.23B | 21.52B | 22.59B |
| Stockholders Equity | 20.96B | 20.66B | 20.54B | 21.33B | 17.36B |
Cash Flow | |||||
| Free Cash Flow | 1.41B | 2.02B | 665.00M | 873.00M | 2.06B |
| Operating Cash Flow | 1.99B | 2.49B | 1.32B | 1.47B | 2.63B |
| Investing Cash Flow | -1.34B | -117.00M | 1.04B | -1.88B | -1.79B |
| Financing Cash Flow | -1.55B | -2.00B | -1.50B | -837.00M | -1.21B |
Nokia Technical Analysis
Positive
8.25
Price Trends
7.35
Positive
6.91
Positive
5.85
Positive
Market Momentum
0.25
Positive
58.34
Neutral
30.19
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 8.25 is above the 20-day moving average (MA) of 8.05, above the 50-day MA of 7.35, and above the 200-day MA of 5.85, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 30.19 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $48.98B | 35.83 | 120.56% | 0.49% | 36.77% | 102.83% | |
75 Outperform | $75.65B | 29.58 | 103.24% | 1.18% | 6.17% | 35.41% | |
74 Outperform | $319.39B | 23.23 | 23.64% | 2.09% | 8.91% | 14.53% | |
70 Outperform | $37.61B | 11.10 | 29.57% | 2.51% | 1.04% | ― | |
66 Neutral | $31.71B | 17.34 | -0.64% | 2.17% | 14.17% | -102.25% | |
63 Neutral | $45.63B | 49.36 | 4.38% | 2.26% | 5.05% | 115.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
NOK
Nokia
8.25
3.11
60.41%
CSCO
Cisco Systems
80.86
20.53
34.02%
ERIC
Telefonaktiebolaget LM Ericsson
11.46
3.47
43.47%
MSI
Motorola Solutions
454.75
28.18
6.61%
UI
Ubiquiti Networks
834.48
521.89
166.95%
HPE
Hewlett Packard Enterprise
23.90
8.23
52.48%
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.