Nokia Q2 2025 Revenue Down 18%, Adjusted EBIT Down 35%

Nokia reported Q2 2025 net revenue of €4.6bn, down 18% y-o-y, with adjusted EBIT of €400m, a 35% decline. Adjusted net income was €264m, down from €479m in Q2 2024. CEO Pekka Lundmark stated that despite a challenging environment, the company maintains profitability and remains confident in achieving its 2025 targets. Nokia confirmed its full-year outlook, targeting net sales between €22.7bn and €24.1bn and an adjusted EBIT margin of 11.5-13%.

Title: Nokia's Q2 2025 Performance: Challenges and Optimism

Nokia Corporation has reported its Q2 2025 financial results, showcasing a resilient performance despite challenging market conditions. The company's net sales decreased by 1% on a constant currency and portfolio basis, totaling €4.551 billion, a decline of 18% year-over-year (y-o-y) [1]. This performance was influenced by a 13% decrease in Mobile Networks, primarily due to prior year settlement benefits and project timing in India. Conversely, Network Infrastructure grew by 8%, Cloud and Network Services by 14%, and Nokia Technologies by 3% [1].

The company's gross margin remained stable at 44.7% y-o-y, with operating profit impacted by a negative €50 million venture fund impact and a €60 million negative currency revaluation, leading to a comparable operating margin of 6.6% [1]. Despite these challenges, Nokia generated €0.1 billion in free cash flow and maintained a net cash balance of €2.9 billion [1].

CEO Justin Hotard expressed optimism about the company's position in the AI supercycle, highlighting Nokia's unique portfolio in mobile and fiber access, data center, and transport networks. He noted that customer conversations have validated Nokia's technology, partnering culture, and talent, and emphasized the need to unify corporate functions to drive value [1].

Looking ahead, Nokia expects a stronger second half performance, particularly in Q4, and maintains its full-year outlook. The company targets net sales between €22.7 billion and €24.1 billion and an adjusted EBIT margin of 11.5-13% [1]. However, the outlook is subject to risks, including currency fluctuations and tariffs, which could impact the company's performance.

In summary, Nokia's Q2 2025 results demonstrate the company's ability to navigate challenging market conditions while maintaining profitability. The company's full-year outlook remains positive, with a focus on growth in Network Infrastructure and Cloud and Network Services.

References

[1] https://www.nokia.com/newsroom/nokia-corporation-report-for-q2-and-half-year-2025/