Nokia Corporation
Interim report
22 October 2026 at 08:00 EEST
Nokia Corporation Interim Report for Q3 2026
Nokia delivers strong net sales and profit growth
- Q3 net sales grew 9% y-o-y on a constant currency basis (+10% reported).
- Network Infrastructure net sales grew 15% y-o-y on a constant currency basis, led by IP Networks growing 43% and Optical Networks 18%. Group net sales to AI & Cloud customers grew 123% and order intake 118%.
- Mobile Infrastructure net sales grew 5% y-o-y, in part due to acceleration of revenue from Q4 into Q3. The segment benefited from product mix, commercial discipline and continued execution of the cost reduction program.
- Q3 comparable gross margin was largely stable y-o-y at 44.6%. Reported gross margin declined 220bps to 42.2%.
- Q3 comparable operating margin increased 220bps y-o-y to 11.7% benefiting from revenue growth and operating efficiency. Reported operating margin declined 160bps to 3.8% due to accelerated restructuring and integration cost.
- Q3 comparable diluted EPS from continued operations of EUR 0.09; reported diluted EPS from continued operations of EUR 0.03.
- Nokia's full year financial outlook is unchanged.
"Team Nokia continues to deliver on our commitments as we execute against our strategy. In Q3, we grew net sales by 9% and improved comparable operating margin by 220 basis points. We continue to simplify our portfolio, and we are on track to complete the Infinera integration by the end of 2026, one year ahead of plan with EUR 200 million of net synergies.
In AI & Cloud, net sales more than doubled year-over-year and we secured EUR 1.5 billion in new orders. Our strong order backlog also positions us for future growth. We expect our combined Optical and IP Networks businesses to grow between 25% and 30% in 2027. Nokia’s strengths are uniquely suited to meet growing demands for AI infrastructure that is larger, more distributed and hyperconnected. We are investing where we can differentiate and co-innovate with hyperscalers. Our partnership with Google in support of their EUR 13 billion investment in Finland is an example of how our optical and IP networks provide the critical connectivity AI infrastructure requires.
AI-native networks are moving into the physical world, and our AI-RAN platform is being developed to deliver the performance needed for this market. Together with T-Mobile and NVIDIA, we completed the world’s first AI-RAN call in a live operator network in line with the commitment we announced last year. As we move towards commercial deployment the features and spectral efficiency delivered by our platform are uniquely differentiated in the market.
Overall, growth is accelerating, operating leverage is becoming more visible and I’m confident in the long-term shareholder value Team Nokia is creating."
Justin Hotard, President and CEO
This is a summary of the Nokia Corporation Interim Report for Q3 2026 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group's financial information as well as on Nokia's outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. Investors should not solely rely on summaries of Nokia's financial reports and should also review the complete reports with tables.
FINANCIAL RESULTS
EUR million (except for EPS in EUR) |
Q3'26 |
Q3'25 |
YoY change |
Q1-Q3'26 |
Q1-Q3'25 |
YoY change |
Reported results |
|
|
|
|
|
|
Net sales |
5 154 |
4 700 |
10% |
14 402 |
13 443 |
7% |
Gross margin % |
42.2% |
44.4% |
(220)bps |
43.7% |
43.5% |
20bps |
Operating profit |
196 |
252 |
(22)% |
229 |
403 |
(43)% |
Operating margin % |
3.8% |
5.4% |
(160)bps |
1.6% |
3.0% |
(140)bps |
Profit from continuing operations |
176 |
90 |
96% |
307 |
150 |
105% |
Loss from discontinued operations |
(21) |
(10) |
|
(59) |
(34) |
|
Profit for the period |
156 |
80 |
95% |
248 |
116 |
114% |
EPS from continuing operations, diluted |
0.03 |
0.01 |
200% |
0.05 |
0.02 |
150% |
Net cash and interest-bearing financial investments |
2 584 |
3 001 |
(14)% |
2 584 |
3 001 |
(14)% |
Comparable results |
|
|
|
|
|
|
Net sales |
5 154 |
4 705 |
10% |
14 405 |
13 453 |
7% |
Constant currency and portfolio YoY change |
|
|
9% |
|
|
7% |
Gross margin % |
44.6% |
44.8% |
(20)bps |
45.5% |
44.4% |
110bps |
Operating profit |
605 |
448 |
35% |
1 340 |
1 024 |
31% |
Operating margin % |
11.7% |
9.5% |
220bps |
9.3% |
7.6% |
170bps |
Profit from continuing operations |
498 |
334 |
49% |
1 223 |
760 |
61% |
EPS from continuing operations, diluted |
0.09 |
0.06 |
50% |
0.21 |
0.13 |
62% |
Segment results |
Network Infrastructure |
Mobile Infrastructure |
Portfolio Businesses |
EUR million |
Q3'26 |
Q3'25 |
Q3'26 |
Q3'25 |
Q3'26 |
Q3'25 |
Net sales |
2 158 |
1 850 |
2 902 |
2 755 |
96 |
97 |
YoY change |
17% |
|
5% |
|
(1)% |
|
Constant currency YoY change |
15% |
|
5% |
|
(2)% |
|
Gross margin % |
41.2% |
42.7% |
47.5% |
47.3% |
31.3% |
18.6% |
Operating profit/(loss) |
216 |
143 |
420 |
355 |
3 |
(4) |
Operating margin % |
10.0% |
7.7% |
14.5% |
12.9% |
3.1% |
(4.1)% |
OUTLOOK
|
Full Year 2026 |
Comparable operating profit(1),(2) |
EUR 2.1 billion to EUR 2.6 billion |
1 Please refer to Alternative performance measures section in Nokia Corporation Interim Report for Q3 2026 for a full explanation of how this term is defined.
2 Outlook is based on a EUR:USD rate of 1.14 for the remainder of 2026.
The outlook and the underlying outlook assumptions are forward-looking statements subject to a number of risks and uncertainties as described or referred to in the Risk Factors section later in this release.
Along with Nokia's official outlook target provided above, Nokia provides the below assumptions that support the group level financial outlook for 2026.
|
Full year 2026 |
Comment |
Q4 seasonality |
|
Nokia assumes a 20% to 24% q-o-q increase in net sales in Q4. Comparable operating profit: Nokia assumes a typically strong q-o-q increase in operating profit in Q4 to deliver full year operating profit above the mid-point of our comparable operating profit outlook. |
Network Infrastructure net sales growth(1) |
12 - 14% |
This incorporates an updated assumption for combined Optical and IP Networks to grow somewhat above Nokia's prior 18-20% assumption in 2026. |
Comparable financial income and expenses |
Positive EUR 300 to 400 million (update) |
Strong income from Nokia's venture fund investments is leading to an increase in the outlook assumption for 2026. |
Comparable income tax rate |
~26% (update) |
Nokia's effective tax rate remains sensitive to geographic mix. |
Cash outflows related to income taxes |
EUR 500 million |
|
Capital expenditures |
EUR 750 - 850 million (update) |
Reduced assumption partially due to some changes in real estate plans and the timing of some of the cash impact of manufacturing investments moving to 2027. Nokia's optical manufacturing expansion plans remain on-track, this only relates to timing of some cash payments. |
Free cash flow conversion from comparable operating profit |
35% to 55% (update) |
Nokia is lowering its FCF conversion assumption due to investments the company is making in working capital during 2026 to secure supply and support the growth opportunity in 2027 along with accelerated restructuring. Nokia is now planning to invest an additional EUR 400 million in working capital this year. |
Restructuring and associated charges related to cost savings programs |
EUR 1 100 million (update) |
Nokia has increased the scale of some of its restructuring programs as it accelerates efforts to simplify the company's operations and location strategy and increase operating leverage in the business going forward. |
Restructuring and associated cash outflows |
EUR 800 - 900 million (update) |
Restructuring and related cash outflows relating to all Nokia restructuring programs. |
1 Net sales growth assumption is on a constant currency and portfolio basis.
SHAREHOLDER DISTRIBUTION
Dividend
Under the authorization by the Annual General Meeting held on 9 April 2026, the Board of Directors may resolve on the distribution of an aggregate maximum of EUR 0.14 per share to be paid in respect of financial year 2025. The authorization will be used to distribute dividend and/or assets from the reserve for invested unrestricted equity in four installments during the authorization period unless the Board decides otherwise for a justified reason.
On 22 October 2026, the Board resolved to distribute a dividend of EUR 0.03 per share. The dividend record date is 27 October 2026 and the dividend will be paid on 5 November 2026. The actual dividend payment date outside Finland will be determined by the practices of the intermediary banks transferring the dividend payments.
Following this announced distribution, the Board’s remaining distribution authorization is a maximum of EUR 0.03 per share.
RISK FACTORS
Nokia and its businesses are exposed to a number of risks and uncertainties which include but are not limited to:
- Competitive intensity, which is expected to continue at a high level as some competitors seek to take share;
- Changes in customer network investments related to their ability to monetize the network or opportunities related to AI and data center growth;
- Our ability to ensure competitiveness of our product roadmaps and costs through additional R&D investments;
- Our ability to procure or manufacture certain components (e.g. semiconductors), the costs thereof and our ability to align our inventory levels and supplier commitments with customer demand
- Disturbance in the global supply chain;
- Impact of inflation, increased global macro-uncertainty, major currency fluctuations, changes in tariffs and higher interest rates;
- Potential economic impact and disruption of global pandemics;
- War or other geopolitical conflicts, disruptions and potential costs thereof;
- Other macroeconomic, industry and competitive developments;
- Timing and value of new, renewed and existing patent licensing agreements with licensees;
- Results in technology licensing; costs to protect and enforce our intellectual property rights; on-going litigation with respect to licensing and regulatory landscape for patent licensing;
- The outcomes of on-going and potential disputes and litigation;
- Our ability to execute, complete, successfully integrate and realize the expected benefits from transactions;
- Timing of completions and acceptances of certain projects;
- Our product and regional mix;
- Uncertainty in forecasting income tax expenses and cash outflows, over the long-term, as they are also subject to possible changes due to business mix, the timing of patent licensing cash flow and changes in tax legislation, including potential tax reforms in various countries and OECD initiatives;
- Our ability to utilize our Finnish deferred tax assets and their recognition on our balance sheet;
- Our ability to meet our sustainability and other ESG targets, including our targets relating to greenhouse gas emissions;
as well the risk factors specified under Forward-looking statements of this release, and our 2025 annual report on Form 20-F published on 5 March 2026 under Operating and financial review and prospects-Risk factors.
FORWARD-LOOKING STATEMENTS
Certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia's current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, projects, programs, products, growth management, licenses, operational key performance indicators and decisions on market exits; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of geopolitical conflicts and the general or regional macroeconomic conditions on our businesses, our supply chain, the timing of market changes or turning points in demand and our customers’ businesses) and any future dividends and other distributions of profit; C) expectations and targets regarding financial performance and results of operations, including market share, prices, net sales, income, margins, cash flows, cost savings, the timing of receivables, operating expenses, provisions, impairments, tariffs, taxes, currency exchange rates, hedging, investment funds, inflation, product cost reductions, competitiveness, value creation, revenue generation in any specific region, and licensing income and payments; D) our ability to execute, expectations, plans or benefits related to transactions, investments and changes in organizational structure and operating model; E) impact on revenue with respect to litigation/renewal discussions; and F) any statements preceded by or including "anticipate", “continue”, “believe”, “envisage”, “expect”, “aim”, “will”, “target”, “may”, “would”, “could“, "see", “plan”, “ensure” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in the Risk Factors above.
ANALYST WEBCAST
- Nokia's webcast will begin on 22 October 2026 at 3.00 p.m. Finnish time (EEST). The webcast will last approximately 60 minutes.
- The webcast will be a presentation followed by a Q&A session. Presentation slides will be available for download at www.nokia.com/financials.
- A link to the webcast will be available at www.nokia.com/financials.
- Media representatives may join the conference call via the link, where dial-in details are also available.
FINANCIAL CALENDAR
Nokia plans to publish its fourth quarter and full year 2026 results on 28 January 2027.
About Nokia
Nokia is a global leader in connectivity infrastructure, enabling the AI supercycle. We build networks that connect intelligence and deliver a comprehensive connectivity solution across fixed, mobile, IP, optical, core, and data center networks. With security by design, AI-driven innovation, and AI-optimized architecture, Nokia delivers trusted infrastructure that enables AI to scale and advances connectivity to secure a brighter world.
Inquiries:
Nokia
Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Vice President, Corporate Communications
Nokia
Investor Relations
Phone: +358 931 580 507
Email: investor.relations@nokia.com
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