Nokia (NOK) AI Stock Analysis

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Nokia

(NYSE:NOK)

Rating:57Neutral

Price Target:

$4.50

▲(8.70% Upside)

Nokia's overall stock score reflects a mixed financial outlook with strong cash flow and balance sheet stability. The technical analysis indicates bearish trends, while valuation suggests potential overvaluation. Earnings call insights reveal strategic strengths but also caution due to external financial pressures, impacting profitability targets.

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

Market Cap

$22.43B

Dividend Yield3.75%

Average Volume (3M)21.48M

Price to Earnings (P/E)21.3

Beta (1Y)0.42

Revenue Growth-2.39%

EPS Growth157.33%

CountryUS

Employees78,434

SectorTechnology

Sector Strength96

IndustryCommunication Equipment

Share Statistics

EPS (TTM)0.05

Shares Outstanding5,455,850,600

10 Day Avg. Volume18,516,151

30 Day Avg. Volume21,478,628

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.20

Enterprise Value/Revenue3.00

Enterprise Value/Gross Profit7.08

Enterprise Value/Ebitda46.22

Forecast

1Y Price Target

$5.80

Price Target Upside40.10% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Nokia Business Overview & Revenue Model

Company DescriptionNokia 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 MoneyNokia 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 Key Performance Indicators (KPIs)

Any

Gross Profit by Segment

Gross Profit by Segment
Shows profit after direct costs for each business unit, revealing efficiency and pricing power across different segments.

Chart InsightsNokia's Network Infrastructure and Cloud and Network Services segments show resilience with recent growth, driven by strong demand and strategic deals. However, Mobile Networks faces challenges, reflected in declining profits due to past revenue recognition and external pressures like currency fluctuations and tariffs. Despite these hurdles, Nokia's focus on AI and technology advancements, alongside robust infrastructure growth, positions it for long-term opportunities. The revised profit outlook highlights the impact of macroeconomic factors, yet the company remains optimistic about cash flow and strategic growth areas.

Data provided by:

Main Street Data

Nokia Earnings Call Summary

Earnings Call Date:Jul 24, 2025

(Q2-2025)

% Change Since: -7.59%|

Next Earnings Date:Oct 23, 2025

Earnings Call Sentiment Neutral

The earnings call highlighted strong performance in Network Infrastructure and Cloud and Network Services, with significant new deals and advancements in technology. However, challenges in Mobile Networks, currency fluctuations, and a revised outlook due to external factors present notable challenges.

Q2-2025 Updates

Positive Updates

Strength in Network Infrastructure

Network Infrastructure delivered 8% growth with Fixed Networks growing 17%, Optical Networks 6%, and IP Networks 3%. This growth was particularly driven by demand in Optical Networks and positive reception to the Infinera acquisition.

New Deals and Partnerships

Nokia secured significant deals, including its first award from a hyperscaler for 800 gig ZR/ZR+ pluggables and a deal with a large U.S. communication service provider. Additionally, new 5G deals were signed with T-Mobile U.S., Elisa in Finland, and Optus in Australia.

Strong Cloud and Network Services Performance

Cloud and Network Services net sales grew by 14%, reflecting momentum in Core Networks, with strong growth in North America and Asia Pacific.

Advancements in AI and Technology

Nokia is actively participating in consortiums bidding for the EU's EUR 20 billion program to build AI gigafactories, indicating long-term growth opportunities in AI infrastructure.

Negative Updates

Decline in Mobile Networks

Mobile Networks net sales declined by 13% due to EUR 150 million in accelerated revenue recognition from a contract settlement in the prior year.

Profitability Impacted by Currency Fluctuations

The company faced a EUR 50 million noncash negative impact from venture funds, including a EUR 60 million impact from currency fluctuations, particularly due to a weaker U.S. dollar.

Revised Full Year Outlook

Nokia lowered its full year operating profit outlook from EUR 1.9 billion to EUR 2.4 billion to a new range of EUR 1.6 billion to EUR 2.1 billion due to currency movements and tariff impacts.

Company Guidance

During Nokia's second quarter 2025 results call, the company provided guidance for the full year, adjusting its operating profit outlook from EUR 1.9 billion to EUR 2.4 billion to a new range of EUR 1.6 billion to EUR 2.1 billion. This revision was driven by two main factors: currency fluctuations and tariffs. The euro-dollar exchange rate had shifted from 1.04 to 1.17, contributing to a EUR 230 million headwind, including a EUR 90 million noncash impact from currency within their venture fund portfolio. Tariffs were expected to impact the full-year operating profit by EUR 50 million to EUR 80 million. Despite these challenges, Nokia maintained its guidance for free cash flow conversion at 50% to 80% of comparable operating profit and projected strong growth in Network Infrastructure, growth in Cloud and Network Services, and stable net sales in Mobile Networks, with Nokia Technologies expected to deliver EUR 1.1 billion in operating profit.

Nokia Financial Statement Overview

Summary

Nokia's financial statements reveal a robust cash flow and a strong balance sheet with improved leverage. However, revenue volatility and challenges in revenue growth present risks. Profitability margins have improved, and cost management remains effective, supporting financial resilience.

Income Statement

Positive

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

Positive

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

Positive

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.22B	22.26B	24.91B	22.20B	21.87B
Gross Profit	8.86B	8.69B	10.22B	8.83B	8.21B
EBITDA	3.43B	2.94B	3.55B	3.23B	2.05B
Net Income	1.28B	665.00M	4.25B	1.62B	-2.42B
Balance Sheet
Total Assets	39.15B	39.86B	42.94B	40.05B	36.28B
Cash, Cash Equivalents and Short-Term Investments	8.91B	8.24B	9.16B	9.60B	8.28B
Total Debt	4.75B	5.19B	5.52B	5.66B	6.49B
Total Liabilities	18.40B	19.23B	21.52B	22.59B	23.65B
Stockholders Equity	20.66B	20.54B	21.33B	17.36B	12.56B
Cash Flow
Free Cash Flow	2.02B	665.00M	873.00M	2.07B	1.28B
Operating Cash Flow	2.49B	1.32B	1.47B	2.63B	1.76B
Investing Cash Flow	-117.00M	1.04B	-1.88B	-1.79B	-1.52B
Financing Cash Flow	-2.00B	-1.50B	-837.00M	-1.21B	883.00M

Nokia Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.14

Price Trends

50DMA

4.81

Negative

100DMA

4.94

Negative

200DMA

4.75

Negative

Market Momentum

MACD

-0.21

Negative

RSI

26.30

Positive

STOCH

63.73

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 4.14 is below the 20-day moving average (MA) of 4.29, below the 50-day MA of 4.81, and below the 200-day MA of 4.75, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 26.30 is Positive, neither overbought nor oversold. The STOCH value of 63.73 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

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 (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSI	77 Outperform	$78.50B	37.92	152.71%	0.90%	6.45%	44.24%
HPE	73 Outperform	$27.02B	21.27	6.39%	2.44%	11.63%	-24.41%
CIEN	71 Outperform	$13.63B	134.28	3.71%	―	2.86%	-29.92%
JNPR	71 Outperform	$13.42B	38.18	7.58%	2.20%	-2.56%	52.05%
ERIC	64 Neutral	$25.79B	15.18	19.63%	3.65%	0.98%	―
Sector *	57 Neutral	HK$14.39B	9.80	-0.60%	4.57%	7.08%	-37.99%
NOK	57 Neutral	$22.43B	21.25	4.31%	3.75%	-2.39%	157.33%

* Technology Sector Average

Performance Comparison

NOK

Nokia

4.14

0.26

6.70%

CIEN

Ciena

96.40

46.37

92.68%

JNPR

Juniper Networks

39.95

2.08

5.49%

ERIC

Telefonaktiebolaget LM Ericsson

7.61

0.89

13.24%

MSI

Motorola Solutions

471.20

56.70

13.68%

HPE

Hewlett Packard Enterprise

21.32

4.04

23.38%

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.Date of analysis: Jul 25, 2025