Nokia tops Q3 net sales expectations on AI-related demand
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
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(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.)