Nokia Corporation Interim Report for Q3 2026

Accelerated restructuring weighed on reported operating profit, while additional working capital investment lowered expected cash conversion.

Rhea-AI Summary

Nokia (NOK) reported Q3 2026 net sales of EUR 5.154 billion, with reported operating profit declining despite higher revenue. Sales rose 10% year over year, while operating profit fell 22% to EUR 196 million. Reported gross margin fell 220 basis points to 42.2%, and operating margin declined to 3.8%. Profit from continuing operations rose 96% to EUR 176 million, with diluted earnings per share of EUR 0.03.

Comparable operating profit, an adjusted measure, rose 35% to EUR 605 million. Network Infrastructure sales increased 15% at constant currencies; Mobile Infrastructure sales rose 5%, partly reflecting revenue accelerated from Q4. Nokia maintained its 2026 comparable operating profit outlook of EUR 2.1–2.6 billion, but lowered expected free cash flow conversion to 35%–55%. Restructuring charges are now expected at EUR 1.1 billion, with related cash outflows of EUR 800–900 million.

24 points · 0 major

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0 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointQ3 reported sales rose 10% year over year to EUR 5.154 billion; nine-month sales rose 7% to EUR 14.402 billion.
• Moderate pointQ3 continuing-operations profit rose 96% to EUR 176 million; nine-month profit rose 105% to EUR 307 million.
• Moderate pointComparable operating profit rose 35% to EUR 605 million in Q3 and 31% to EUR 1.340 billion over nine months.
• Moderate pointComparable operating margin reached 11.7% in Q3, up 220 basis points; nine-month margin rose 170 basis points to 9.3%.
• Moderate pointAI & Cloud Q3 order intake grew 118%, with EUR 1.5 billion in new orders secured.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Infinera integration remains targeted for end-2026, one year ahead of plan, with EUR 200 million of net synergies.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Combined Optical and IP Networks growth is expected at 25%–30% in 2027.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 Network Infrastructure growth assumption is 12%–14% at constant currencies and portfolio; Optical/IP growth is assumed somewhat above 18%–20%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Q4 net sales are assumed to rise 20%–24% sequentially; Nokia assumes full-year comparable operating profit above its outlook midpoint.

15 minor points

• Minor pointQ3 reported diluted continuing-operations EPS rose 200% to EUR 0.03; nine-month EPS rose 150% to EUR 0.05.
• Minor pointQ3 total profit rose 95% to EUR 156 million; nine-month profit rose 114% to EUR 248 million.
• Minor pointComparable continuing-operations profit rose 49% to EUR 498 million in Q3 and 61% to EUR 1.223 billion over nine months.
• Minor pointComparable diluted continuing-operations EPS rose 50% to EUR 0.09 in Q3 and 62% to EUR 0.21 over nine months.
• Minor pointNetwork Infrastructure Q3 sales rose 17% to EUR 2.158 billion, or 15% at constant currencies.
• Minor pointIP Networks and Optical Networks Q3 sales grew 43% and 18%, respectively, at constant currencies.
• Minor pointNetwork Infrastructure operating profit reached EUR 216 million, versus EUR 143 million; margin increased to 10.0% from 7.7%.
• Minor pointAI & Cloud Q3 sales grew 123% year over year.
• Minor pointMobile Infrastructure Q3 sales rose 5% to EUR 2.902 billion, partly reflecting revenue accelerated from Q4.
• Minor pointMobile Infrastructure operating profit reached EUR 420 million, versus EUR 355 million; margin rose to 14.5% from 12.9%.
• Minor pointMobile Infrastructure gross margin increased to 47.5% in Q3 from 47.3% a year earlier.
• Minor pointPortfolio Businesses operating profit reached EUR 3 million, versus a EUR 4 million loss; gross margin rose to 31.3%.
• Minor pointNine-month reported gross margin rose 20 basis points to 43.7%; comparable gross margin rose 110 basis points to 45.5%.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 comparable financial income and expenses are expected positive EUR 300–400 million, an increased assumption.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 capital expenditure assumption fell to EUR 750–850 million, partly reflecting cash payments moving to 2027; optical expansion remains on track.

Negative

• Moderate pointReported operating profit fell 22% to EUR 196 million in Q3 and 43% to EUR 229 million over nine months.
• Moderate pointQ3 reported gross margin fell 220 basis points to 42.2%; comparable gross margin fell 20 basis points to 44.6%.
• Moderate pointNet cash and interest-bearing financial investments fell 14% year over year to EUR 2.584 billion.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 free cash flow conversion assumption was lowered to 35%–55% of comparable operating profit.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Additional 2026 working capital investment is planned at EUR 400 million to secure supply and support 2027 growth.
• Moderate point. Forward-looking: it has not happened yet and may not happen.2026 restructuring charges are now expected at EUR 1.1 billion as Nokia increases the scale of some programs.

6 minor points

• Minor pointReported operating margin fell 160 basis points to 3.8% in Q3; nine-month margin fell 140 basis points to 1.6%.
• Minor pointDiscontinued-operations losses widened to EUR 21 million in Q3 from EUR 10 million; nine-month losses reached EUR 59 million.
• Minor pointNetwork Infrastructure Q3 gross margin fell to 41.2% from 42.7% a year earlier.
• Minor pointPortfolio Businesses Q3 sales fell 1% to EUR 96 million, or 2% at constant currencies.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 restructuring-related cash outflows are expected at EUR 800–900 million across all Nokia restructuring programs.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 income-tax cash outflows are assumed at EUR 500 million.

News Explained

Nokia says the Infinera integration remains on track for completion by year-end 2026, one year ahead of plan.

In its Q3 report, Nokia says its board resolved on 22 October 2026 to pay a dividend of EUR 0.03 per share, for holders of record on 27 October 2026, with payment on 5 November 2026.

The board’s remaining distribution authorization is a maximum of EUR 0.03 per share, rather than a second resolved payment.

Nokia says it plans an additional EUR 400 million in working-capital investment in 2026 to secure supply and support 2027 growth, and cites this investment alongside accelerated restructuring as a reason for lowering its free-cash-flow-conversion assumption.

Key Figures

Q3 net sales growth: 9% constant currency; 10% reported Network Infrastructure net sales growth: 15% AI & Cloud net sales growth: 123% +5 more

Q3 net sales growth

9% constant currency; 10% reported

Year over year

Network Infrastructure net sales growth

15%

Q3 year over year, constant currency

AI & Cloud net sales growth

123%

Year over year

Comparable operating margin

11.7%, up 220 bps

Q3 year over year

Reported operating margin

3.8%, down 160 bps

Q3 year over year

Comparable diluted EPS

EUR 0.09

Q3 from continuing operations; up 50% year over year

Full-year comparable operating profit outlook

EUR 2.1 billion to EUR 2.6 billion

Full year 2026

Dividend

EUR 0.03 per share

Board-resolved distribution; record date October 27, 2026

Key Terms

constant currency, diluted eps, basis points, free cash flow, +1 more

5 terms

constant currency financial

"Q3 net sales grew 9% y-o-y on a constant currency basis"

Constant currency is a way of measuring financial results that removes the effects of changes in currency exchange rates. It allows for a clearer comparison of a company's performance over time by showing what the numbers would look like if exchange rates had stayed the same. This helps investors understand whether growth comes from actual business improvements or just currency fluctuations.

diluted eps financial

"Q3 comparable diluted EPS from continued operations of EUR 0.09"

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

basis points financial

"improved comparable operating margin by 220 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

free cash flow financial

"Free cash flow conversion from comparable operating profit"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

working capital financial

"Nokia is now planning to invest an additional EUR 400 million in working capital this year"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

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Nokia Corporation
Interim report
22 October 2026 at 08:00 EEST

Nokia Corporation Interim Report for Q3 2026

Nokia delivers strong net sales and profit growth

• Q3 net sales grew 9% y-o-y on a constant currency basis (+10% reported).
• Network Infrastructure net sales grew 15% y-o-y on a constant currency basis, led by IP Networks growing 43% and Optical Networks 18%. Group net sales to AI & Cloud customers grew 123% and order intake 118%.
• Mobile Infrastructure net sales grew 5% y-o-y, in part due to acceleration of revenue from Q4 into Q3. The segment benefited from product mix, commercial discipline and continued execution of the cost reduction program.
• Q3 comparable gross margin was largely stable y-o-y at 44.6%. Reported gross margin declined 220bps to 42.2%.
• Q3 comparable operating margin increased 220bps y-o-y to 11.7% benefiting from revenue growth and operating efficiency. Reported operating margin declined 160bps to 3.8% due to accelerated restructuring and integration cost.
• Q3 comparable diluted EPS from continued operations of EUR 0.09; reported diluted EPS from continued operations of EUR 0.03.
• Nokia's full year financial outlook is unchanged.

"Team Nokia continues to deliver on our commitments as we execute against our strategy. In Q3, we grew net sales by 9% and improved comparable operating margin by 220 basis points. We continue to simplify our portfolio, and we are on track to complete the Infinera integration by the end of 2026, one year ahead of plan with EUR 200 million of net synergies.

In AI & Cloud, net sales more than doubled year-over-year and we secured EUR 1.5 billion in new orders. Our strong order backlog also positions us for future growth. We expect our combined Optical and IP Networks businesses to grow between 25% and 30% in 2027. Nokia’s strengths are uniquely suited to meet growing demands for AI infrastructure that is larger, more distributed and hyperconnected. We are investing where we can differentiate and co-innovate with hyperscalers. Our partnership with Google in support of their EUR 13 billion investment in Finland is an example of how our optical and IP networks provide the critical connectivity AI infrastructure requires.

AI-native networks are moving into the physical world, and our AI-RAN platform is being developed to deliver the performance needed for this market. Together with T-Mobile and NVIDIA, we completed the world’s first AI-RAN call in a live operator network in line with the commitment we announced last year. As we move towards commercial deployment the features and spectral efficiency delivered by our platform are uniquely differentiated in the market.

Overall, growth is accelerating, operating leverage is becoming more visible and I’m confident in the long-term shareholder value Team Nokia is creating."

Justin Hotard, President and CEO

This is a summary of the Nokia Corporation Interim Report for Q3 2026 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group's financial information as well as on Nokia's outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. Investors should not solely rely on summaries of Nokia's financial reports and should also review the complete reports with tables.

FINANCIAL RESULTS

EUR million (except for EPS in EUR)	Q3'26	Q3'25	YoY change	Q1-Q3'26	Q1-Q3'25	YoY change
Reported results
Net sales	5 154	4 700	10%	14 402	13 443	7%
Gross margin %	42.2%	44.4%	(220)bps	43.7%	43.5%	20bps
Operating profit	196	252	(22)%	229	403	(43)%
Operating margin %	3.8%	5.4%	(160)bps	1.6%	3.0%	(140)bps
Profit from continuing operations	176	90	96%	307	150	105%
Loss from discontinued operations	(21)	(10)		(59)	(34)
Profit for the period	156	80	95%	248	116	114%
EPS from continuing operations, diluted	0.03	0.01	200%	0.05	0.02	150%
Net cash and interest-bearing financial investments	2 584	3 001	(14)%	2 584	3 001	(14)%
Comparable results
Net sales	5 154	4 705	10%	14 405	13 453	7%
Constant currency and portfolio YoY change			9%			7%
Gross margin %	44.6%	44.8%	(20)bps	45.5%	44.4%	110bps
Operating profit	605	448	35%	1 340	1 024	31%
Operating margin %	11.7%	9.5%	220bps	9.3%	7.6%	170bps
Profit from continuing operations	498	334	49%	1 223	760	61%
EPS from continuing operations, diluted	0.09	0.06	50%	0.21	0.13	62%

Segment results	Network Infrastructure		Mobile Infrastructure		Portfolio Businesses
EUR million	Q3'26	Q3'25	Q3'26	Q3'25	Q3'26	Q3'25
Net sales	2 158	1 850	2 902	2 755	96	97
YoY change	17%		5%		(1)%
Constant currency YoY change	15%		5%		(2)%
Gross margin %	41.2%	42.7%	47.5%	47.3%	31.3%	18.6%
Operating profit/(loss)	216	143	420	355	3	(4)
Operating margin %	10.0%	7.7%	14.5%	12.9%	3.1%	(4.1)%

OUTLOOK

	Full Year 2026
Comparable operating profit(1),(2)	EUR 2.1 billion to EUR 2.6 billion

¹ Please refer to Alternative performance measures section in Nokia Corporation Interim Report for Q3 2026 for a full explanation of how this term is defined.
² Outlook is based on a EUR:USD rate of 1.14 for the remainder of 2026.

The outlook and the underlying outlook assumptions are forward-looking statements subject to a number of risks and uncertainties as described or referred to in the Risk Factors section later in this release.
Along with Nokia's official outlook target provided above, Nokia provides the below assumptions that support the group level financial outlook for 2026.

	Full year 2026	Comment
Q4 seasonality		Nokia assumes a 20% to 24% q-o-q increase in net sales in Q4. Comparable operating profit: Nokia assumes a typically strong q-o-q increase in operating profit in Q4 to deliver full year operating profit above the mid-point of our comparable operating profit outlook.
Network Infrastructure net sales growth(1)	12 - 14%	This incorporates an updated assumption for combined Optical and IP Networks to grow somewhat above Nokia's prior 18-20% assumption in 2026.
Comparable financial income and expenses	Positive EUR 300 to 400 million (update)	Strong income from Nokia's venture fund investments is leading to an increase in the outlook assumption for 2026.
Comparable income tax rate	~26% (update)	Nokia's effective tax rate remains sensitive to geographic mix.
Cash outflows related to income taxes	EUR 500 million
Capital expenditures	EUR 750 - 850 million (update)	Reduced assumption partially due to some changes in real estate plans and the timing of some of the cash impact of manufacturing investments moving to 2027. Nokia's optical manufacturing expansion plans remain on-track, this only relates to timing of some cash payments.
Free cash flow conversion from comparable operating profit	35% to 55% (update)	Nokia is lowering its FCF conversion assumption due to investments the company is making in working capital during 2026 to secure supply and support the growth opportunity in 2027 along with accelerated restructuring. Nokia is now planning to invest an additional EUR 400 million in working capital this year.
Restructuring and associated charges related to cost savings programs	EUR 1 100 million (update)	Nokia has increased the scale of some of its restructuring programs as it accelerates efforts to simplify the company's operations and location strategy and increase operating leverage in the business going forward.
Restructuring and associated cash outflows	EUR 800 - 900 million (update)	Restructuring and related cash outflows relating to all Nokia restructuring programs.

¹ Net sales growth assumption is on a constant currency and portfolio basis.

SHAREHOLDER DISTRIBUTION

Dividend

Under the authorization by the Annual General Meeting held on 9 April 2026, the Board of Directors may resolve on the distribution of an aggregate maximum of EUR 0.14 per share to be paid in respect of financial year 2025. The authorization will be used to distribute dividend and/or assets from the reserve for invested unrestricted equity in four installments during the authorization period unless the Board decides otherwise for a justified reason.

On 22 October 2026, the Board resolved to distribute a dividend of EUR 0.03 per share. The dividend record date is 27 October 2026 and the dividend will be paid on 5 November 2026. The actual dividend payment date outside Finland will be determined by the practices of the intermediary banks transferring the dividend payments.

Following this announced distribution, the Board’s remaining distribution authorization is a maximum of EUR 0.03 per share.

RISK FACTORS

Nokia and its businesses are exposed to a number of risks and uncertainties which include but are not limited to:

• Competitive intensity, which is expected to continue at a high level as some competitors seek to take share;
• Changes in customer network investments related to their ability to monetize the network or opportunities related to AI and data center growth;
• Our ability to ensure competitiveness of our product roadmaps and costs through additional R&D investments;
• Our ability to procure or manufacture certain components (e.g. semiconductors), the costs thereof and our ability to align our inventory levels and supplier commitments with customer demand
• Disturbance in the global supply chain;
• Impact of inflation, increased global macro-uncertainty, major currency fluctuations, changes in tariffs and higher interest rates;
• Potential economic impact and disruption of global pandemics;
• War or other geopolitical conflicts, disruptions and potential costs thereof;
• Other macroeconomic, industry and competitive developments;
• Timing and value of new, renewed and existing patent licensing agreements with licensees;
• Results in technology licensing; costs to protect and enforce our intellectual property rights; on-going litigation with respect to licensing and regulatory landscape for patent licensing;
• The outcomes of on-going and potential disputes and litigation;
• Our ability to execute, complete, successfully integrate and realize the expected benefits from transactions;
• Timing of completions and acceptances of certain projects;
• Our product and regional mix;
• Uncertainty in forecasting income tax expenses and cash outflows, over the long-term, as they are also subject to possible changes due to business mix, the timing of patent licensing cash flow and changes in tax legislation, including potential tax reforms in various countries and OECD initiatives;
• Our ability to utilize our Finnish deferred tax assets and their recognition on our balance sheet;
• Our ability to meet our sustainability and other ESG targets, including our targets relating to greenhouse gas emissions;

as well the risk factors specified under Forward-looking statements of this release, and our 2025 annual report on Form 20-F published on 5 March 2026 under Operating and financial review and prospects-Risk factors.

FORWARD-LOOKING STATEMENTS

Certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia's current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, projects, programs, products, growth management, licenses, operational key performance indicators and decisions on market exits; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of geopolitical conflicts and the general or regional macroeconomic conditions on our businesses, our supply chain, the timing of market changes or turning points in demand and our customers’ businesses) and any future dividends and other distributions of profit; C) expectations and targets regarding financial performance and results of operations, including market share, prices, net sales, income, margins, cash flows, cost savings, the timing of receivables, operating expenses, provisions, impairments, tariffs, taxes, currency exchange rates, hedging, investment funds, inflation, product cost reductions, competitiveness, value creation, revenue generation in any specific region, and licensing income and payments; D) our ability to execute, expectations, plans or benefits related to transactions, investments and changes in organizational structure and operating model; E) impact on revenue with respect to litigation/renewal discussions; and F) any statements preceded by or including "anticipate", “continue”, “believe”, “envisage”, “expect”, “aim”, “will”, “target”, “may”, “would”, “could“, "see", “plan”, “ensure” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in the Risk Factors above.

ANALYST WEBCAST

• Nokia's webcast will begin on 22 October 2026 at 3.00 p.m. Finnish time (EEST). The webcast will last approximately 60 minutes.
• The webcast will be a presentation followed by a Q&A session. Presentation slides will be available for download at www.nokia.com/financials.
• A link to the webcast will be available at www.nokia.com/financials.
• Media representatives may join the conference call via the link, where dial-in details are also available.

FINANCIAL CALENDAR

Nokia plans to publish its fourth quarter and full year 2026 results on 28 January 2027.

About Nokia

Nokia is a global leader in connectivity infrastructure, enabling the AI supercycle. We build networks that connect intelligence and deliver a comprehensive connectivity solution across fixed, mobile, IP, optical, core, and data center networks. With security by design, AI-driven innovation, and AI-optimized architecture, Nokia delivers trusted infrastructure that enables AI to scale and advances connectivity to secure a brighter world.

Inquiries:

Nokia
Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Vice President, Corporate Communications

Nokia
Investor Relations
Phone: +358 931 580 507
Email: investor.relations@nokia.com

Attachment

• 2026_Q3_Nokia_ Earnings_release_English

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Nokia's full-year 2026 operating profit outlook?

Nokia maintained its full-year 2026 outlook for comparable operating profit of EUR 2.1 billion to EUR 2.6 billion. The outlook uses a EUR:USD exchange rate of 1.14 for the remainder of 2026. Nokia assumes a sequential increase in Q4 operating profit sufficient to deliver full-year comparable operating profit above the outlook midpoint.

When will Nokia pay its newly declared dividend?

Nokia will pay a dividend of EUR 0.03 per share on 5 November 2026, with a record date of 27 October 2026. Payment dates outside Finland depend on intermediary bank practices. Following this distribution, the board's remaining distribution authorization is a maximum of EUR 0.03 per share.

What tax-rate assumption is Nokia using for 2026?

Nokia's updated 2026 comparable income tax rate assumption is approximately 26%. The company says its effective tax rate remains sensitive to the geographic mix of its business.