Nokia Reports Lower Q2 Revenue and Earnings Below Expectations

Nokia reported Q2 revenue of €4,546 million, up 1.8% YoY, but below the consensus of €4,799 million. Operating profit fell to €81 million from €432 million, and adjusted operating profit was €301 million, below the expected €407 million. Net profit after tax totaled €96 million, compared to a loss of €142 million last year.

Nokia (NYSE:NOK) reported its Q2 2025 financial results, revealing that the company missed both top-line and bottom-line estimates. The company's Q2 non-GAAP EPS of €0.04 fell short by €0.02, while revenue of €4.55 billion was €240 million below the consensus of €4.799 billion [1].

Operating profit declined to €81 million from €432 million in the same period last year, and adjusted operating profit was €301 million, missing the expected €407 million. Net profit after tax totaled €96 million, compared to a loss of €142 million in the previous year [1].

The company attributed the shortfall to a 13% decline in Mobile Networks, which had benefited from accelerated revenue recognition in the prior year. Network Infrastructure grew by 8%, while Cloud and Network Services increased by 14% [1]. Comparable gross margin remained flat at 44.7%, and comparable operating margin decreased by 290 basis points to 6.6% [1].

Nokia also announced a revised full-year 2025 comparable operating profit outlook, ranging from €1.6 billion to €2.1 billion, down from the previous range of €1.9 billion to €2.4 billion. The company cited currency and tariff pressures, particularly the weaker U.S. dollar, as the primary reasons for the downgrade [2].

The weaker U.S. dollar and tariffs are expected to lower the outlook by around €230 million, while tariffs could impact earnings by €50-€80 million [2]. Despite the challenges, Nokia's sales in North America have been growing steadily, although it has lost market share to Nordic rival Ericsson (ERICb.ST) [2].

References:
[1] https://seekingalpha.com/news/4471143-nokia-misses-q2-top-line-and-bottom-line-estimates-lowers-fy25-outlook
[2] https://www.reuters.com/markets/europe/nokia-cuts-2025-profit-guidance-citing-tariffs-weaker-us-dollar-2025-07-22/