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Nokia
(NYSE:NOK)
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Rating:58Neutral
Price Target:
$10.00
â–²(9.89% Upside)
Action:Reiterated
Date:07/24/26
NOK scores in the mid range primarily due to solid balance-sheet strength and improving operating momentum highlighted in the latest earnings call, partially offset by materially weaker recent cash-flow performance. The technical setup is bearish (below key moving averages with negative MACD), and valuation is a headwind given the high P/E and modest dividend yield.
Positive Factors
Conservative Balance Sheet
Low leverage and a sizeable equity cushion provide durable financial flexibility across multi-year telecom cycles. With a conservative debt-to-equity profile, Nokia can fund capex, R&D, restructuring or M&A without relying heavily on external debt, reducing solvency risk over the next 2–6 months.
Negative Factors
Weakened Cash Generation
Material decline in free cash flow weakens confidence in cash conversion and constrains internal funding for capex and strategic investments. Even with a net-cash position reported for the quarter, continued cash volatility raises funding and execution risk across the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low leverage and a sizeable equity cushion provide durable financial flexibility across multi-year telecom cycles. With a conservative debt-to-equity profile, Nokia can fund capex, R&D, restructuring or M&A without relying heavily on external debt, reducing solvency risk over the next 2–6 months.
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
$51.22B
Dividend Yield1.78%
Average Volume (3M)95.50M
Price to Earnings (P/E)62.8
Beta (1Y)0.64
Revenue Growth13.04%
EPS Growth-24.13%
CountryUS
Employees78,434
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.12
Shares Outstanding5,742,239,700
10 Day Avg. Volume114,403,330
30 Day Avg. Volume95,498,140
Financial Highlights & Ratios
PEG Ratio-0.96
Price to Book (P/B)1.42
Price to Sales (P/S)1.50
P/FCF Ratio20.36
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$17.89Price Target Upside96.59% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.39
Revenue Forecast (FY)$23.67B
Nokia Business Overview & Revenue Model
Company Description
Nokia Corporation (NOK) is a telecommunications and networking equipment company that develops and sells technology for mobile, fixed, and IP networks. The company provides network infrastructure and related software and services used by telecom o...
How the Company Makes Money
Nokia primarily makes money by selling telecommunications network equipment, software, and services, supplemented by intellectual property licensing. Its core revenue stream comes from providing network infrastructure to customers such as communic...
Nokia Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call presents strong commercial momentum—notably double‑digit growth in Network Infrastructure and >100% year‑on‑year growth in AI & Cloud sales—with margin expansion and multiple strategic product launches (AI RAN) and manufacturing investments. Offsetting risks include a negative free cash flow quarter, sizable restructuring and one‑time charges (~EUR 800m), supply‑chain constraints and order lumpiness (only ~50% of Q2 AI orders expected to convert within 12 months). Management remains confident on operating profit guidance (tracking somewhat above midpoint) and has significant net cash (EUR 2.8bn), but near‑term cash and margin phasing and execution on capacity ramps are key watch items.Positive Updates
Revenue and Margin Expansion
Net sales grew 9% in Q2 FY2026; gross margin expanded 70 basis points to 46%; operating margin expanded 70 basis points to 9%.
Negative Updates
Negative Free Cash Flow and Working Capital Buildup
Free cash flow was negative EUR 732 million in Q2 (quarter typically weakest for cash due to employee incentives); management reports some working capital increase and expects to track toward the low end of FCF conversion guidance (55%–75%).
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and Margin Expansion
Net sales grew 9% in Q2 FY2026; gross margin expanded 70 basis points to 46%; operating margin expanded 70 basis points to 9%.
Read all positive updates
Company Guidance
The company left its full‑year comparable operating profit guidance operationally unchanged and said it is tracking somewhat above the midpoint of the range; for Q3 it expects sequential net sales to rise 3–7% and operating profit to be broadly similar to Q2 (with mobile infrastructure gross margin phased to about 44–46% in Q3 before improving in Q4). Key numbers from the quarter: net sales +9% YoY, gross margin 46% (+70 bps), operating margin 9% (+70 bps), operating profit €434m, free cash flow negative €732m and net cash €2.8bn. AI & Cloud sales more than doubled to €446m with order intake of €2.8bn (about half of that expected to convert to revenue within 12 months). Segment and program metrics: network infrastructure sales +12% (optical +20%, IP +16%), fixed networks −2%, optical line terminal sales +18%; NI gross margin 42.7% (+240 bps) and NI operating margin 8.1%; the company has achieved €1.2bn gross cost savings to date and expects ~€800m of restructuring charges in 2026 (including ~€350m China integration charges recognized by end‑2026 and ~€200m of new European efficiency charges). Cash conversion is expected toward the low end of the 55–75% free cash flow conversion assumption.Nokia Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 20.27B | 19.89B | 19.22B | 21.14B | 23.76B | 22.20B |
| Gross Profit | 9.00B | 8.66B | 8.86B | 8.55B | 10.10B | 8.83B |
| EBITDA | 2.15B | 2.25B | 3.43B | 2.91B | 3.53B | 3.23B |
| Net Income | 708.00M | 651.00M | 1.28B | 665.00M | 4.25B | 1.62B |
Balance Sheet | ||||||
| Total Assets | 37.28B | 37.58B | 39.15B | 39.86B | 42.94B | 40.05B |
| Cash, Cash Equivalents and Short-Term Investments | 5.13B | 6.42B | 8.91B | 8.24B | 9.16B | 9.60B |
| Total Debt | 3.36B | 5.21B | 4.75B | 5.19B | 5.52B | 5.66B |
| Total Liabilities | 15.98B | 16.53B | 18.40B | 19.23B | 21.52B | 22.59B |
| Stockholders Equity | 21.20B | 20.96B | 20.66B | 20.54B | 21.33B | 17.36B |
Cash Flow | ||||||
| Free Cash Flow | 536.00M | 1.47B | 2.02B | 665.00M | 873.00M | 2.06B |
| Operating Cash Flow | 1.14B | 2.07B | 2.49B | 1.32B | 1.47B | 2.63B |
| Investing Cash Flow | -285.00M | -1.40B | -117.00M | 1.04B | -1.88B | -1.79B |
| Financing Cash Flow | -1.33B | -1.61B | -2.00B | -1.50B | -837.00M | -1.21B |
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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $72.33B | 34.69 | 90.39% | 1.13% | 8.32% | 2.54% | |
72 Outperform | $457.17B | 38.41 | 25.14% | 1.45% | 9.21% | 25.97% | |
70 Outperform | $63.43B | 43.93 | 6.12% | 1.17% | 23.33% | 2.87% | |
66 Neutral | $32.90B | 12.66 | 23.57% | 3.35% | 2.72% | 56.42% | |
62 Neutral | $33.68B | 35.72 | 101.45% | 0.59% | 33.34% | 71.52% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $51.22B | 62.76 | 4.55% | 1.80% | 13.04% | -24.13% |
* Technology Sector Average
NOK
Nokia
9.58
5.52
136.02%
CSCO
Cisco Systems
121.50
53.69
79.19%
ERIC
Telefonaktiebolaget LM Ericsson
10.06
2.83
39.18%
MSI
Motorola Solutions
438.14
0.95
0.22%
UI
Ubiquiti Networks
569.12
112.32
24.59%
HPE
Hewlett Packard Enterprise
53.22
33.50
169.88%
Nokia Corporate Events
Nokia Discloses Senior Manager Share Purchases on NYSE
Jun 1, 2026
On May 31, 2026, Nokia disclosed that senior manager Victoria Hanrahan acquired a total of 44,682 Nokia American depositary shares on the New York Stock Exchange in two transactions dated May 26 and May 28, 2026. The purchases, executed at volume-...
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.