Key Takeaways
- Nokia shares climbed +1.3% to €9.286 following a second-quarter earnings report that surpassed analyst forecasts
- Operating profit on a comparable basis reached €434 million, representing an 18% year-over-year increase and exceeding the consensus estimate of approximately €382 million
- Revenue from artificial intelligence and cloud infrastructure clients surged 105% compared to the same period last year; orders nearly tripled from the previous quarter
- The company increased its annual comparable operating profit forecast to a range of €2.1–€2.6 billion
- JPMorgan maintained its Overweight stance with a target price of €18.00 after reviewing the quarterly report
Nokia delivered results that exceeded Wall Street projections on July 23, 2026, propelling shares higher at market open before consolidating with a +1.3% advance to €9.286. During intraday trading, the stock reached a peak of €9.800.
Total revenue registered at €4.82 billion, representing a 9% improvement when adjusted for currency fluctuations. Operating profit on a comparable basis hit €434 million, marking an 18% year-over-year climb and significantly outpacing Street expectations of roughly €382 million.
The standout metric that captured investor attention was the performance in artificial intelligence and cloud infrastructure. Revenue from these client segments jumped 105% versus the prior-year period. New orders from AI and cloud customers totaled €2.8 billion during the quarter — representing a near-tripling compared to the €1 billion recorded in the first quarter.
The company’s Network Infrastructure division, which carries the greatest exposure to AI-related capital expenditure, reported 12% revenue expansion on a constant-currency basis. Breaking that down further, Optical Networks posted 20% growth while IP Networks increased 16%.
Company Elevates Annual Forecast, Announces Dividend Payment
Nokia increased its full-year comparable operating profit projection to between €2.1 billion and €2.6 billion. Additionally, management announced a dividend of €0.04 per share for stockholders.
Following the quarterly release, JPMorgan confirmed its Overweight recommendation and €18.00 price objective, highlighting the impressive EBIT outperformance. SEB Equities had previously raised Nokia to a Buy rating in anticipation of the report, emphasizing the growth opportunity in AI and cloud infrastructure.
Shares relinquished a portion of their early session gains as trading progressed. Market participants balanced the positive earnings surprise against Nokia’s disclosure of an additional €200 million in European restructuring expenses.
Competitive Landscape: Ericsson Context Provides Perspective
Competitor Ericsson had recently highlighted increasing AI-related component expenses as an industry challenge. That commentary had created some overhang on Nokia’s valuation in the weeks preceding this earnings announcement.
Nokia’s second-quarter performance effectively countered those worries, demonstrating that revenue momentum from AI infrastructure buildouts is outpacing supply chain cost inflation.
Finland’s primary equity benchmark, the OMX Helsinki 25, had already posted gains in the trading session immediately before Nokia’s results were released.
Looking at valuation metrics, Nokia trades at a price-to-earnings multiple of 61.11x, substantially elevated compared to its historical median of 22.66x. The GF Score registers at 58 out of 100, indicating moderate prospects for long-term shareholder returns.
Balance sheet indicators remain healthy, featuring a current ratio of 1.57 and a debt-to-equity ratio of just 0.16. Corporate filings show no insider transaction activity over the trailing twelve-month period.
Nokia’s market capitalization stands at approximately $57.39 billion. The stock began the trading day at €9.762 before settling at €9.286, representing a 1.3% daily gain.
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