Key Highlights
- Nokia shares opened higher with a +1.3% increase to €9.286 following second quarter results that exceeded expectations
- Operating profit on a comparable basis reached €434 million, climbing 18% year-over-year and surpassing the ~€382 million consensus
- Revenue from AI and cloud customers more than doubled with a 105% YoY increase; quarterly orders nearly tripled compared to the first quarter
- Annual comparable operating profit outlook increased to €2.1–€2.6 billion range
- JPMorgan maintained its Overweight rating with a price target of €18.00 after reviewing the quarterly report
Nokia delivered second quarter results that surpassed analyst projections on July 23, 2026, driving the shares higher at market open before stabilizing at a +1.3% advance to €9.286. Intraday trading saw the stock reach a peak of €9.800.
Revenue totaled €4.82 billion, representing 9% growth when adjusted for currency fluctuations. Comparable operating profit hit €434 million, marking an 18% annual improvement and significantly exceeding the Street’s forecast of approximately €382 million.
The standout metric came from the AI and cloud segment. Revenue from these customer categories jumped 105% compared to the prior year period. Orders from AI and cloud clients reached €2.8 billion during the second quarter — roughly triple the €1 billion recorded in the first quarter.
The Network Infrastructure division at Nokia, which carries the greatest exposure to AI infrastructure investments, delivered 12% constant-currency revenue expansion. Drilling down, Optical Networks increased 20% while IP Networks advanced 16%.
Outlook Upgraded, Dividend Announced
Nokia raised its full-year comparable operating profit forecast to €2.1–€2.6 billion. Management also announced a €0.04 per share dividend payment.
JPMorgan confirmed its Overweight stance and €18.00 target price following the quarterly release, highlighting the robust EBIT outperformance. SEB Equities had previously elevated Nokia to Buy ahead of earnings, emphasizing the AI and cloud expansion opportunity.
The stock surrendered a portion of its early session gains. Market participants balanced the positive guidance revision against disclosed European restructuring expenses totaling €200 million.
Ericsson Context Provides Industry Perspective
Competitor Ericsson had earlier highlighted increasing AI-related component expenses as a sector challenge. That commentary had created pressure on Nokia shares in the weeks preceding this quarterly report.
Nokia’s second quarter performance countered that narrative, demonstrating that revenue momentum from demand is outpacing input cost inflation.
The OMX Helsinki 25 index in Finland had already advanced during the previous trading session in anticipation of these results.
Looking at valuation metrics, Nokia trades at a P/E multiple of 61.11x, considerably elevated versus its historical median of 22.66x. The GF Score registers at 58 out of 100, indicating moderate prospects for long-term returns.
Balance sheet health indicators remain robust, featuring a current ratio of 1.57 and a debt-to-equity ratio of 0.16. There have been no reported insider transactions during the past twelve months.
Nokia carries a market capitalization of approximately $57.39 billion. Shares opened at €9.762 before retreating to end the trading session at €9.286, representing a 1.3% daily gain.
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