Nokia (NOK) AI Stock Analysis

• Market Cap: $33.97B
• Dividend Yield: 2.43%
• Average Volume (3M): 57.60M
• Price to Earnings (P/E): 34.2
• Beta (1Y): 0.39
• 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: 21,529,316
• 30 Day Avg. Volume: 57,600,917
• 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: $6.80
• Price Target Upside: 12.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 0.31
• Revenue Forecast (FY): $23.01B

• Rating: 66 Neutral
• Price Target: $6.50 ▲(7.08% 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 Corporation is a Finnish multinational telecommunications, information technology, and consumer electronics company. Founded in 1865, Nokia operates primarily in two sectors: Networks and Nokia Technologies. The Networks segment provides a range of telecommunications infrastructure, software, and services to mobile network operators and service providers globally, focusing on 5G technology and Internet of Things (IoT) solutions. Nokia Technologies, on the other hand, encompasses the company’s patent licensing and technology development activities, allowing it to monetize its vast intellectual property portfolio. The company is known for its commitment to innovation, sustainability, and delivering connectivity solutions across various industries.

How the Company Makes Money

Nokia generates revenue through multiple streams. The primary revenue source is its Networks segment, which includes sales of hardware (like base stations and network equipment), software, and managed services to telecom operators and enterprises. The company benefits from the ongoing global rollout of 5G networks, which drives demand for its cutting-edge solutions. Additionally, Nokia earns significant income through its Nokia Technologies division, which licenses its patents to other companies in the telecommunications and electronics industries. This includes royalties from licensing agreements with smartphone manufacturers and other technology firms. Strategic partnerships with major telecommunications companies and industry collaborations also play a crucial role in enhancing Nokia's market presence and revenue potential. Furthermore, the company invests in research and development to innovate and expand its service offerings, ensuring a steady pipeline of revenue-generating products.

Nokia Financial Statement Overview

Summary

Nokia shows strong revenue recovery and maintains a solid balance sheet with low leverage. However, profitability margins are under pressure, and cash flow generation has declined, indicating areas for improvement.

Income Statement

Nokia's income statement shows a strong gross profit margin of 60.31% in the TTM, indicating efficient cost management. However, the net profit margin has decreased to 5.87% from 6.64% in the previous year, reflecting some pressure on profitability. Revenue growth is positive at 40.2% TTM, a significant improvement from the previous year's decline, suggesting a strong recovery and growth trajectory.

Balance Sheet

The balance sheet is stable with a debt-to-equity ratio of 0.21, indicating a conservative leverage position. Return on equity is modest at 5.75%, down from previous years, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 54.33%, reflecting a solid equity base relative to total assets.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 10.62% TTM, indicating challenges in cash generation. The operating cash flow to net income ratio is 0.20, suggesting that operating cash flows are not fully covering net income, which could be a concern if it persists. However, the free cash flow to net income ratio remains healthy at 67.65%, showing decent cash conversion.

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: Neutral
• Last Price: 6.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOK, the sentiment is Neutral. The current price of 6.07 is below the 20-day moving average (MA) of 6.37, above the 50-day MA of 6.04, and above the 200-day MA of 5.13, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 70.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NOK.

Nokia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CSCO	77 Outperform	$308.07B	29.40	23.01%	2.09%	8.91%	14.53%
ERIC	74 Outperform	$31.99B	12.79	25.45%	2.56%	1.04%	―
HPE	72 Outperform	$30.22B	28.11	0.23%	2.27%	14.00%	-102.25%
MSI	71 Outperform	$62.36B	30.04	115.80%	1.16%	6.17%	35.41%
NOK	66 Neutral	$33.97B	34.16	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	$34.39B	43.10	155.78%	0.48%	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.