Nokia Reports In-Line Q4/FY2025 Results, Issues 2026 Guidance, and Highlights Strategic NVIDIA Partnership
summarizeSummary
Nokia reported Q4 and full year 2025 results in line with expectations, provided 2026 guidance, and announced a significant strategic partnership with NVIDIA, including a EUR 0.86 billion equity investment.
check_boxKey Events
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Q4 and Full Year 2025 Results In-Line
Nokia reported Q4 2025 comparable net sales growth of 3% year-over-year (constant currency and portfolio basis) to EUR 6.1 billion, with full year comparable net sales growing 2%. Full year comparable operating profit was EUR 2.0 billion, within prior guidance.
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Introduces 2026 Financial Guidance
The company targets comparable operating profit of EUR 2.0 to 2.5 billion for full year 2026, with Network Infrastructure net sales growth of 6-8% CAGR and free cash flow conversion of 55-75%.
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Strategic NVIDIA Partnership and Equity Investment
NVIDIA Corporation made a USD 1.0 billion (EUR 0.86 billion) equity investment in Nokia, acquiring an approximately 2.90% stake. This is part of a strategic partnership to lead the AI-RAN market and support data center networking evolution.
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Proposed Dividend for 2025
The Board proposes a dividend authorization of EUR 0.14 per share for the financial year 2025, with EUR 0.03 per share resolved for distribution in Q4 2025.
auto_awesomeAnalysis
Nokia's Q4 and full year 2025 financial results were in line with prior expectations, providing stability. The company's 2026 guidance for comparable operating profit, targeting EUR 2.0 to 2.5 billion, offers a clear forward-looking trajectory. A key highlight is the strategic partnership with NVIDIA, which included a substantial USD 1.0 billion (EUR 0.86 billion) equity investment, signaling strong confidence in Nokia's AI-RAN market leadership and data center networking evolution. This capital infusion and strategic alignment with AI trends are significant for Nokia's future growth. Additionally, the proposed EUR 0.14 per share dividend for 2025 is a positive for shareholders, and the simplification of the operating model into Network Infrastructure and Mobile Infrastructure segments, effective January 2026, aims to sharpen execution and accountability.
At the time of this filing, NOK was trading at $6.40 on NYSE in the Manufacturing sector, with a market capitalization of approximately $37.8B. The 52-week trading range was $4.00 to $8.19. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.