What factors drove the changes in Nokia's revenue and profit?

What is Nokia's gross profit margin?

What does Nokia do and what are its main business segments?

What guidance did Nokia's management provide for the next earnings period?

What is the revenue and EPS growth rate for Nokia year over year?

What were the key takeaways from Nokia's earnings call?

Did Nokia beat or miss consensus estimates last quarter?

What were the key takeaways from Nokia’s earnings call?

- **AI/Cloud Growth Driver**: 2025 AI/cloud orders EUR 2.4 billion, Optical Networks +17% Q4. 2026 targets: Network Infrastructure CAGR 6-8%, Optical/IP CAGR 10-12%.
- **Profitability Focus**: Mobile Infrastructure operating profit ≥EUR 1.5 billion. 2026 operating profit EUR 2-2.5 billion, free cash flow conversion 65-75%.
- **CapEx & Restructuring**: EUR 900-1 billion CapEx for Optical manufacturing. EUR 450 million restructuring costs, with EUR 800-1.2 billion savings by 2028.
- **Risks**: Supply chain constraints, AT&T contract loss, Fixed Networks de-prioritization. Opportunities: EU regulations, defense market expansion.

**【CEO Summary Section】**
- **Q4 2025 Performance**: Net sales of EUR 6.1 billion (+3% YoY), operating profit of EUR 1 billion, and free cash flow of EUR 0.2 billion. Full-year net sales of EUR 19.9 billion and operating profit of EUR 2 billion, slightly above midpoint of guidance.
- **Strategic Focus**: Emphasized AI and cloud growth, with EUR 2.4 billion in orders from AI/cloud customers in 2025. Optical Networks grew 17% in Q4, driven by 800G ZR/ZR+ pluggable products.
- **Mobile Infrastructure Restructuring**: Formed new segment to improve profitability, targeting EUR 1.5 billion+ operating profit. Acquired full ownership of Nokia Shanghai Bell, with EUR 200 million run-rate cost synergies by 2028.
- **2026 Financial Targets**: Operating profit of EUR 2-2.5 billion. Network Infrastructure CAGR of 6-8% (2025-2028), with Optical/IP CAGR of 10-12%. Mobile Infrastructure gross margin to stabilize, operating profit ≥EUR 1.5 billion.

**【CFO Financial Commentary】**
- **Q4 2025 Results**: Gross margin 48.1% (+90bps), operating margin 17.3% (-90bps due to growth investments). Free cash flow EUR 226 million, ending year with EUR 3.4 billion net cash.
- **Segment Performance**: Network Infrastructure net sales +7% (Optical +17%), Mobile Networks +6%, Nokia Technologies -17%. Full-year Mobile Networks gross margin 37% (up 200bps YoY).
- **2026 Guidance**: Operating profit EUR 2-2.5 billion. Free cash flow conversion 65-75%. CapEx EUR 900-1 billion for Optical manufacturing and R&D. Restructuring costs EUR 450 million (cash outflow), with EUR 800-1.2 billion savings by 2028.

**【Q&A Highlights】**
- **Optical Growth & Supply Constraints**: CEO confident in 10-12% CAGR for Optical/IP, despite Q4 0% growth. CapEx EUR 900-1 billion for 2026 to scale production. Supply chain constraints expected to persist, with pricing impacts mitigated by long-term contracts.
- **Mobile Networks Challenges**: Headwinds from AT&T contract loss, but stable market. Defense & mission-critical enterprise growth offsetting Fixed Networks decline (deemphasizing low-margin CPE).
- **Regulatory Impact**: EU Digital Network Act & Cybersecurity Act create opportunities for Nokia's 5G/6G leadership, with potential EUR 1.4 billion annual patent licensing run rate.
- **Q1 2026 Outlook**: Sequential decline >24% (seasonal), with operating margin slightly below 2025. Full-year free cash flow conversion 65-75%.


Nokia Oyj (NOK) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: Q3 net sales +9%, driven by AI/cloud (6% of sales) and Infinera acquisition.
- **Profitability**: Operating margin flat YoY (9%), with €429M free cash flow.
- **Strategic Focus**: 6G R&D investments, hyperscale switching design wins, and Nscale partnership.
- **Q4 Outlook**: Net sales growth >22% YoY, tracking to midpoint of €1.7-2.2B operating profit range.
- **Risk Management**: Mobile Networks gross margin volatility due to software mix; 2026 normalization expected.

**【CEO Summary Section】**
- Delivered 9% net sales growth in Q3, driven by all business groups. AI and cloud customers contributed 6% of total sales, up from 5% in Q2.
- Network Infrastructure gross margin improved sequentially, while Mobile Networks margin was impacted by lower software revenue mix.
- On track to meet full-year operating profit guidance, with Q4 net sales expected to grow above historical seasonality of 22%.
- Announced strategic partnership with Nscale and Supermicro, securing new design wins in hyperscale switching.
- Infinera acquisition contributed strongly to order intake and net sales growth.

**【CFO Financial Commentary】**
- Q3 net sales: €5.3B (9% YoY), with all business groups growing.
- GAAP net income: €420M; Non-GAAP EPS: €1.08 (beat expectations).
- Operating margin declined 220bps YoY due to one-time prior-year loss allowance reversal; adjusted margin flat YoY.
- Free cash flow: €429M; net cash position: €3B.
- Cost savings program targets €450M in 2025, focusing on continuous improvement vs. large restructuring programs.
- Network Infrastructure (11% growth) and Cloud & Network Services (13% growth) led segment performance.

**【Q&A Highlights】**
- **AI & Cloud Growth**: 6% of sales from AI/cloud customers, up from 5% Q2; hyperscale book-to-bill >1x in Optical.
- **6G Strategy**: Early investments in 6G pre-standardization; R&D focus on AI-RAN, Cloud RAN, and spectrum efficiency.
- **Mobile Networks Margin**: Q3 gross margin 35% (down 370bps YoY) due to software mix; expect normalization in 2026.
- **Capital Markets Day**: November 19 event to detail strategy to unlock portfolio potential in AI/Cloud supercycle.
- **Venture Fund Shift**: Scaling back passive investments; focusing on targeted direct minority investments (e.g., Nscale partnership).

Nokia Oyj (NOK) Q3 2025 Earnings Call Transcript

- **AI-driven growth acceleration**: 5% of sales from hyperscalers, with Optical book-to-bill >1 and 800G pluggable wins signaling momentum.
- **Challenges and risks**: Full-year guidance cut to EUR 1.6-2.1B due to 6% currency headwind and EUR 50-80M tariffs. Q3 gross margin temporarily impacted by product mix.
- **Cash resilience**: EUR 88M Q2 free cash flow, net cash EUR 2.9B. Currency sensitivity: EUR 10-15M per 0.01 EUR/USD move.
- **Strategic shifts**: Unified corporate functions to unlock operating leverage, while maintaining business group accountability. Capital Markets Day on Nov 19 for full strategy update.

**【CEO Summary Section】**
- **Optimism on AI-driven connectivity growth**: CEO highlights Nokia's unique position in optical, IP, and mobile networks to capitalize on hyperscale and defense sector demand. Hyperscalers now account for 5% of net sales.
- **Organizational restructuring**: Unified corporate functions to improve agility and operating leverage, while maintaining business group accountability. Capital Markets Day scheduled for November 19 to detail strategy.
- **Q2 mixed performance**: Network Infrastructure (+8%) and Cloud & Network Services (+14%) offset Mobile Networks decline (-13%) due to prior-year accelerated revenue recognition. Operating profit impacted by EUR 50M non-cash venture fund loss (EUR 60M currency-related).
- **Full-year guidance revision**: Comparable operating profit range lowered to EUR 1.6-2.1B due to 6% currency headwind (EUR 230M) and tariffs (EUR 50-80M). Free cash flow conversion target remains 50-80%.

**【CFO Financial Commentary】**
- **Q2 financials**: Net sales EUR 4.55B (-1% YoY). Gross margin stable at 44.7%, with Cloud & Network Services improving 520bps. Operating margin 6.6% (-70bps YoY) due to Infinera integration costs and tariffs.
- **Regional trends**: North America (-mix trends), APAC (India pause in Mobile Networks), Europe (+17% Fixed Networks). Mobile Networks gross margin 41.1% (-70bps YoY) due to product mix.
- **Cash performance**: EUR 88M free cash flow (H1: EUR 800M). Net cash EUR 2.9B. Currency sensitivity: EUR 10-15M impact per 0.01 EUR/USD move.

**【Q&A Key Highlights】**
- **Hyperscale strategy**: CEO emphasizes customer intimacy and portfolio alignment, with Optical book-to-bill >1 and 800G pluggable wins. Targeting double-digit hyperscale share.
- **U.S. fiber growth**: Encouraged by Big Beautiful Bill, Nokia sees opportunity in OLT and PON innovation. Q3 gross margin headwind from product mix expected to normalize.
- **Europe momentum**: Broad-based growth across all businesses, driven by fiber and AI infrastructure investments.
- **Guidance transparency**: CFO details EUR 140M currency headwind (EUR 90M venture funds, EUR 50M tariffs). Q4 back-end loading due to CSP seasonality.
- **Organizational changes**: Simplified functions to reduce HQ costs, while maintaining P&L accountability. No major restructuring beyond 2023 program.


Nokia Oyj (NOK) Q2 2025 Earnings Call Transcript

- **Revenue Growth**: Network Infrastructure +11% (Optical +15%), Cloud & Network Services +8%, Mobile Networks stable.
- **Profit Headwinds**: €120M one-time Mobile Networks charge, Nokia Technologies catch-up sales drag.
- **Tariff Risk**: €20-30M Q2 impact, no H2 guidance yet.
- **Infinera Momentum**: Optical book-to-bill >1, hyperscale order growth exceeds expectations.
- **Cash Strength**: €700M free cash flow, €3B net cash post-acquisition.
- **Hyperscale Play**: Optical leadership, early IP co-development with hyperscalers, €100M/year R&D investment.


**【CEO Opening Remarks】**
- **Market Recovery and Growth**: Q1 net sales declined 3% YoY, but adjusted for one-time factors, Network Infrastructure grew 11% (Optical Networks +15%), Cloud & Network Services +8%, and Mobile Networks stabilized (+2%).
- **Key Wins**: Extended RAN agreement with T-Mobile U.S., 5G core wins with AT&T, Boost Mobile, Ooredoo Qatar, and Telefonica.
- **Profitability Challenges**: Operating margin impacted by one-time contract settlement in Mobile Networks (-€120M) and catch-up sales in Nokia Technologies.
- **Tariff Risk**: €20-30M Q2 impact from U.S. tariffs, with no assumptions for H2 2025.
- **Infinera Synergies**: Optical Networks book-to-bill >1, targeting €200M synergies by 2027.

**【CFO Financial Highlights】**
- **Topline**: Q1 net sales €4.8B (-3% YoY). Network Infrastructure +11%, Cloud & Network Services +8%, Mobile Networks +2%.
- **Margins**: Gross margin 42.3% (-820bps YoY) due to Nokia Technologies. Network Infrastructure operating margin +190bps to 7.8%, Mobile Networks -8.8% (impacted by one-time charge).
- **Cash Flow**: €700M free cash flow, €3B net cash post-Infinera acquisition.
- **Guidance**: 2025 operating profit €1.9-2.4B (unchanged), but top end now more challenging due to Mobile Networks charge.

**【Q&A Key Takeaways】**
- **Infinera Integration**: Q1 Infinera loss €31M (only March data), but optical order growth in hyperscale exceeds expectations. Synergies expected to accelerate in 2025.
- **Mobile Networks Risk**: One-time €120M charge from 2019 project, no similar risks identified. Focus on stabilizing and expanding core network share.
- **Hyperscale Traction**: Optical Networks book-to-bill >1, IP Networks in early stages of co-development with hyperscalers. €100M/year R&D investment targeting €1B+ revenue by 2028.
- **Tariff Mitigation**: 5 manufacturing facilities in U.S., leveraging global supply chain to minimize impact. No pricing pass-through in contracts.
- **Nokia Technologies**: Run rate €1.4B, Amazon licensing deal resolves litigation. No material catch-up payments in future deals.


Nokia Oyj (NOK) Q1 2025 Earnings Call Transcript

- **Record Q4 Margins:** 47.2% gross margin, 19.1% operating margin, highest since 2015.
- **€100M IP Investment:** Targeting €1B data center sales by 2028, backed by Infinera acquisition.
- **Stable Mobile Networks:** 2025 MN sales flat vs. 4% AT&T headwind, 18,000 new base stations won in 2024.
- **NT Growth:** €1.3-1.4B run rate, targeting €1.4-1.5B mid-term.
- **Free Cash Flow:** €2B in 2024, 50-80% conversion in 2025.


**【CEO Opening Remarks】**
- Q4 2024 revenue grew 9% YoY, driven by 17% growth in Network Infrastructure (NI) and 24% in IP networks. Nokia Technologies (NT) achieved 85% Q4 sales growth, with a run rate of €1.3-1.4 billion.
- Comparable gross margin reached 47.2%, highest since 2015, with operating margin at 19.1%. Free cash flow was €2 billion, ending the year with €4.9 billion net cash.
- 2025 outlook: Comparable operating profit €1.9-2.4 billion, excluding Infinera. Target 50-80% free cash flow conversion.

**【CFO Financial Breakdown】**
- **Network Infrastructure (NI):** 17% growth, IP networks up 24%, Fixed Networks 16%, Optical 7%. Gross margin 45.4% due to product mix. Mobile Networks (MN) sales stabilized at -2%, North America up double-digit. NT contributed €430 million to Q4 sales.
- **Cloud & Network Services (CNS):** 7% growth, operating margin 22.4%. 850 private wireless customers (+20% YoY). NT run rate €1.3-1.4 billion, targeting €1.4-1.5 billion by mid-term.
- **Region Performance:** North America (+10%), India (fixed wireless), Europe (NT-driven). 2024 cash generation exceeded expectations, with €1.4 billion returned to shareholders.

**【CEO Strategic Updates】**
- **Infinera Acquisition:** Expected Q1 2025 close, adding optical leadership for data center growth. €100 million annual investment in IP networks to target €1 billion incremental sales by 2028.
- **Mobile Networks (MN):** 18,000 new base stations won in 2024, 12 new RAN customers. 2025 MN sales stable despite 4% headwind from AT&T. Defense sector expansion with Phoenix acquisition.
- **Enterprise Growth:** 117 5G standalone core customers, 48 network API partners. Rapid’s Technology acquisition bolsters network monetization.

**【Q&A Highlights】**
- **2025 Visibility:** Order backlog growth and customer CapEx confidence support NI and CNS growth. MN stability despite AT&T headwind.
- **IP Networks Investment:** €100M annual R&D + go-to-market spend, targeting 2028 data center leadership.
- **Hyperscalers & AI:** Microsoft deployment in 30+ countries; edge compute partnerships with T-Mobile. Telcos exploring AI-driven edge workloads.
- **China Competition:** Chinese vendors remain aggressive, but Nokia focuses on quality and long-term partnerships.
- **BEAD Program:** Wisconsin manufacturing aligns with U.S. broadband goals; Q4 orders from 3 BEAD recipients.


Actual											0.011	0.071	0.0583	0.1677	0.0848	0.107	0.0934	0.1484	0.0736	0.1019	0.0984	0.1737	0.0659	0.078	0.0528	0.1083	0.0959	0.0655	0.065	0.1878	0.0341	0.0471	0.0697	0.1911
Forecast											0.0074	0.033	0.0629	0.1324	0.008	0.05	0.0751	0.1302	0.0704	0.0868	0.0922	0.1404	0.0788	0.0855	0.0791	0.1249	0.0782	0.0508	0.0705	0.1375	0.0482	0.0611	0.0576	0.1712	0.0464
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+48.65%	+115.15%	-7.31%	+26.66%	+960.00%	+114.00%	+24.37%	+13.98%	+4.55%	+17.40%	+6.72%	+23.72%	-16.37%	-8.77%	-33.25%	-13.29%	+22.63%	+28.94%	-7.80%	+36.58%	-29.25%	-22.91%	+21.01%	+11.62%	0.00%

Actual	--	--	--	--	--	--	--	--	--	--	5.38B	6.02B	6.17B	7.87B	6.15B	6.31B	6.30B	7.32B	5.62B	5.99B	6.14B	8.09B	6.43B	6.37B	5.27B	6.18B	4.97B	4.87B	4.68B	6.24B	4.99B	5.35B	5.61B	7.32B	--
Forecast	--	--	--	--	--	--	--	--	--	--	5.61B	5.95B	6.36B	7.70B	5.68B	6.16B	6.34B	7.40B	5.80B	5.80B	6.03B	7.50B	6.24B	6.47B	6.08B	6.80B	5.37B	5.15B	5.17B	6.03B	4.77B	5.54B	5.43B	7.12B	5.31B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-4.13%	+1.26%	-3.04%	+2.15%	+8.21%	+2.51%	-0.64%	-0.98%	-3.11%	+3.24%	+1.83%	+7.81%	+3.08%	-1.56%	-13.42%	-9.07%	-7.37%	-5.34%	-9.34%	+3.49%	+4.70%	-3.39%	+3.37%	+2.68%	0.00%

NOK

NOK fundamentals

NOK Q1 2026 Earnings Preview

Earnings Call

You can ask Aime

NOK

NOK fundamentals

NOK Q1 2026 Earnings Preview

Earnings Call

NOK Earnings Call Summary for Q1/2026Upcoming4:30 AM on Apr 23, 2026

NOK Earnings Call Summary for Q4/20254:30 AM on Jan 29, 2026

NOK Earnings Call Summary for Q3/20254:30 AM on Oct 23, 2025

NOK Earnings Call Summary for Q2/20254:30 AM on Jul 24, 2025

NOK Earnings Call Summary for Q1/20255:00 AM on Apr 24, 2025

You can ask Aime