Nokia tops Q3 net sales expectations on AI-related demand

By Reuters News


Overview

  • Finland connectivity infrastructure provider's Q3 net sales rose 10% yr/yr, beating analyst expectations

  • Comparable diluted EPS from continuing operations up 50% yr/yr

  • Comparable operating margin rose 220 bps to 11.7%, supported by revenue growth and efficiency


Outlook

  • Nokia sees 2026 comparable operating profit between EUR 2.1 bln and EUR 2.6 bln

  • Company expects Q4 net sales to rise 20% to 24% quarter-on-quarter

  • Nokia expects 2026 Network Infrastructure net sales growth of 12% to 14%


Result Drivers

  • NETWORK INFRASTRUCTURE - Co said segment net sales grew 15% y-o-y, driven by 43% growth in IP Networks and 18% in Optical Networks

  • AI & CLOUD DEMAND - Net sales to AI & Cloud customers more than doubled, with order intake up 118% y-o-y

  • MOBILE INFRASTRUCTURE - Segment net sales up 5% y-o-y, aided by revenue acceleration from Q4 and product mix


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

EUR 5.15 bln

EUR 5.04 bln (15 Analysts)

Q3 Gross Margin

42.20%

Q3 EBIT

EUR 196 mln

Q3 EBIT Margin

3.80%


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 15 "strong buy" or "buy", 6 "hold" and 6 "sell" or "strong sell"

  • The average consensus recommendation for the communications & networking peer group is "buy."

  • Wall Street's median 12-month price target for Nokia Oyj is €10.00, about 21.5% above its October 21 closing price of €8.23

  • The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 32 three months ago


Reuters Recommended Reads

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  • Oct 20 - Half of OVHcloud capacity is available, AI model launching in early 2027, CEO says


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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