Nokia (NOK) AI Stock Analysis

• Market Cap: $34.36B
• Dividend Yield: 2.43%
• Average Volume (3M): 67.71M
• Price to Earnings (P/E): 34.1
• Beta (1Y): 0.38
• Revenue Growth: 5.05%
• EPS Growth: 115.92%
• Country: US
• Employees: 78,434
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.07
• Shares Outstanding: 5,742,239,700
• 10 Day Avg. Volume: 46,748,879
• 30 Day Avg. Volume: 67,706,208
• PEG Ratio: 0.20
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 11.57
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.22
• Enterprise Value/Gross Profit: 2.77
• Enterprise Value/Ebitda: 9.02
• 1Y Price Target: $6.46
• Price Target Upside: 6.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.31
• Revenue Forecast (FY): $23.02B

• Rating: 66 Neutral
• Price Target: $6.50 ▲(7.26% Upside)

Nokia's overall score reflects strong revenue growth and strategic advancements in AI and cloud services, as highlighted in the earnings call. However, valuation concerns and margin pressures weigh on the score. The technical analysis suggests mixed market sentiment, and the financial performance indicates areas needing improvement, particularly in profitability and cash flow.

Positive Factors

5G Network Expansion

This strategic partnership to expand 5G networks in Italy strengthens Nokia's market position and supports long-term revenue growth in telecommunications.

AI and Cloud Growth

Growth in AI and cloud segments indicates Nokia's successful diversification and potential for sustainable revenue streams in emerging tech markets.

Strategic Partnership with NVIDIA

The partnership with NVIDIA enhances Nokia's capabilities in AI and 6G, positioning it strongly for future technological advancements and market leadership.

Negative Factors

Declining Margins

Declining margins could impact profitability, indicating challenges in cost management and pricing power, which may affect long-term financial health.

Cash Flow Challenges

A decline in cash flow growth suggests potential difficulties in funding operations and investments, impacting Nokia's financial flexibility and growth initiatives.

Operating Margin Decline

A decline in operating margin reflects increased costs or reduced pricing power, potentially affecting Nokia's ability to sustain profitability over time.

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 radio access networks covering technologies from 2G to 5G, and microwave radio links for transport networks. The company provides fixed networking solutions, such as fiber and copper-based access infrastructure, and cloud and virtualization services, as well as wi-fi portfolio, including mesh solutions and cloud-based controllers; IP routing solutions for IP aggregation, and edge and core applications for residential, business, mobile, and industrial services; a portfolio of optical networks comprising portfolio coherent optical transponders, optical transport network switchers, wavelength-division multiplexers, reconfigurable optical add-drop multiplexer solutions, and optical line systems for metro access and aggregation, data center interconnect, regional, and long-haul/ultra-long-haul applications; and submarine networks. In addition, it offers business applications software, cloud and cognitive services, core networks software, and enterprise solutions. Further, the company provides hardware, software, and services, as well as licensing of intellectual property, including patents, technologies, and the Nokia brand. It serves communications service providers, webscales, hyperscalers, digital industries, and government. Nokia Oyj was founded in 1865 and is headquartered in Espoo, Finland.

How the Company Makes Money

Nokia generates revenue primarily through the sale of network equipment and services to telecom operators, enterprises, and public sector organizations. The Nokia Networks division is a key revenue driver, offering a range of products such as base stations, routers, and software for network management and optimization. Additionally, Nokia Technologies contributes significantly through licensing agreements, where the company monetizes its vast intellectual property portfolio by allowing other companies to use its patented technologies. Key partnerships with major telecom operators and technology companies further bolster Nokia's revenue, particularly in the deployment of 5G networks and the Internet of Things (IoT) solutions. The company's focus on innovation and investment in R&D also plays a crucial role in maintaining competitive advantages and driving future earnings.

Nokia Financial Statement Overview

Summary

Nokia's financial performance is solid with strong cash flow and a stable balance sheet, despite revenue volatility. Improved profitability margins and effective cost management contribute positively, although revenue growth challenges remain.

Income Statement

Nokia's revenue has shown volatility, with a notable drop from 2022 to 2024. However, gross profit margins remain relatively stable, indicating consistent cost management. The net profit margin improved significantly from 2023 to 2024, reflecting better profitability despite lower revenues. The EBIT and EBITDA margins are satisfactory, indicating operational efficiency.

Balance Sheet

The balance sheet illustrates a strong equity position with an equity ratio of around 52.8% in 2024. The debt-to-equity ratio has improved, showing reduced leverage. Return on equity has increased, reflecting improved profitability relative to shareholder investments. Overall, the balance sheet reflects financial stability and effective debt management.

Cash Flow

Operating cash flow has significantly improved in 2024, showcasing robust cash generation capabilities. Free cash flow has grown impressively, indicating effective capital expenditure management. The operating cash flow to net income ratio is strong, suggesting efficient conversion of income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.15B	19.22B	21.14B	24.91B	22.20B	21.87B
Gross Profit	8.89B	8.86B	8.69B	10.22B	8.83B	8.21B
EBITDA	2.73B	3.43B	2.87B	3.55B	2.68B	1.93B
Net Income	1.20B	1.28B	665.00M	4.25B	1.62B	-2.52B
Balance Sheet
Total Assets	36.04B	39.15B	39.86B	42.94B	40.05B	46.52B
Cash, Cash Equivalents and Short-Term Investments	5.67B	8.91B	8.24B	9.16B	9.60B	9.86B
Total Debt	4.07B	4.75B	5.19B	5.52B	5.66B	7.94B
Total Liabilities	16.37B	18.40B	19.23B	21.52B	22.59B	31.17B
Stockholders Equity	19.58B	20.66B	20.54B	21.33B	17.36B	15.25B
Cash Flow
Free Cash Flow	1.37B	2.02B	665.00M	873.00M	2.06B	1.28B
Operating Cash Flow	2.02B	2.49B	1.32B	1.47B	2.63B	1.76B
Investing Cash Flow	-1.34B	-117.00M	1.04B	-1.88B	-1.79B	-1.52B
Financing Cash Flow	-2.74B	-2.00B	-1.50B	-837.00M	-1.21B	883.00M

Nokia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 6.06 is below the 20-day moving average (MA) of 6.62, above the 50-day MA of 5.87, and above the 200-day MA of 5.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 45.04 is Neutral, neither overbought nor oversold. The STOCH value of 18.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NOK.

Nokia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	77 Outperform	$301.55B	28.78	23.01%	2.11%	8.91%	14.53%
ERIC	74 Outperform	$32.06B	12.79	25.45%	3.13%	1.04%	―
MSI	71 Outperform	$61.54B	29.65	115.80%	1.17%	6.17%	35.41%
HPE	67 Neutral	$27.83B	26.64	5.37%	2.42%	14.39%	-38.96%
NOK	66 Neutral	$34.36B	34.10	4.03%	2.43%	5.05%	115.92%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
UI	60 Neutral	$33.66B	42.55	155.78%	0.49%	36.77%	102.83%

Nokia Corporate Events

Nokia Announces $1 Billion Strategic Partnership with NVIDIA

On October 28, 2025, Nokia announced a significant strategic partnership with NVIDIA, which includes a USD 1.0 billion equity investment by NVIDIA in Nokia. This investment will see NVIDIA become a 2.90% shareholder of Nokia. The partnership aims to advance the AI-RAN market and enhance data center networking, with Nokia using the proceeds to accelerate its strategic plans, including the development of 5G and 6G RAN software on NVIDIA’s architecture. This collaboration is expected to create substantial value for both companies and strengthen Nokia’s presence in the AI and Cloud market.

Nokia Manager’s Share Acquisition Highlights Market Confidence

On October 27, 2025, Nokia Corporation reported a manager’s transaction involving Tommi Uitto, a senior manager, who acquired shares on NASDAQ Helsinki. This transaction, under the EU Market Abuse Regulation, highlights Nokia’s ongoing internal financial activities and could indicate confidence in the company’s market positioning and future prospects.