Nokia Beats on Q3 as AI/Cloud Revenue Doubles, but Restructuring Costs and Cash Flow Cut Sink Shares 5.7%
NOK sits 61% above its 52-week low of $5.45.
Summary
Nokia beat on the top and bottom line: Q3 net sales rose 10% to EUR 5.15 billion and adjusted EPS came in at 10 cents versus the 8 cent consensus. The growth engine is AI and Cloud, where revenue jumped 126% to EUR 631 million, 12.2% of total sales, and the company booked EUR 1.5 billion of AI/cloud orders in the quarter. The problem is the profit line as reported: operating profit fell 22% to EUR 196 million and the margin narrowed to 3.8% from 5.4%, while Nokia raised its full-year restructuring cost forecast to as much as EUR 1.1 billion from EUR 800 million and cut free cash flow conversion guidance to 35%-55%. Comparable operating profit actually rose 35% to EUR 605 million, and management reaffirmed the 2026 comparable operating profit range of EUR 2.1-2.6 billion while guiding Q4 revenue up 20%-24% sequentially. Shares were down 5.73% at $8.72 premarket, so the market is trading the cash flow and restructuring hit over the AI beat. The NVIDIA partnership on chip-based mobile network equipment is the other thread to track; the Infinera integration is targeted for completion by end-2026 with about EUR 200 million in cost savings.
At the time of this announcement, NOK was trading at $8.80 on NYSE in the Technology sector, with a market capitalization of approximately $52.3B. The 52-week trading range was $5.45 to $17.45. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Benzinga.