Nokia sales growth strengthens in Q3 while restructuring costs weigh on margins, cash flow

Nokia reported Q3 earnings, highlighting 5% growth in Mobile Infrastructure sales and 8% growth in Technology Standards. The company secured design wins in optical technology and added hyperscaler customers. Gross margins declined in Network Infrastructure but remained stable in Mobile Infrastructure. Nokia expects Q4 sales growth of 20-24% and maintained its operating-profit guidance. It plans to invest €400M more in working capital due to demand.

Nokia (NOK) reported Q3 2026 earnings, highlighting strong demand in Optical and IP Networks, with growth expectations raised to 25-30% for 2027. The company secured design wins and partnerships, including with hyperscalers and telcos, driving demand for AI and cloud infrastructure. Nokia also announced progress in AI RAN technology and strategic partnerships, while continuing cost-saving initiatives and portfolio simplification.

Nokia (NOK) shares fell 15.4% on Thursday despite beating earnings expectations. The company reported 9.7% revenue growth and 50% EPS growth, driven by AI and cloud segment growth of 123%. However, the market reacted negatively, possibly due to high expectations and sector-wide AI stock sell-offs. Nokia's P/E ratio was in the high 70s before the drop. The company reiterated its 2026 guidance without increasing it.

Ukraine and Finland signed €300M agreements, including defense and energy support. Nokia and ICEYE will provide satellite capabilities for Ukraine's defense. Finland will supply locomotives, energy equipment, and financial aid. Finland's bomb shelters are operational, accommodating 4.8M people. European leaders consider appointing a representative to negotiate with Putin.

Nokia (NOK) shares dropped 9% despite Q3 revenue of €5.15B beating estimates. The company increased investment in working capital and reduced its free cash flow conversion outlook. CEO Justin Hotard expects 25-30% growth in Optical and IP Networks by 2027, but the stock trades above its 5-year average forward P/E.

Nokia (NOK) shares fell 10% despite Q3 2026 earnings and revenue beats, due to weaker cash flow guidance and rising restructuring costs. Adjusted EPS was €0.102 vs. €0.070 estimate, revenue €5.83B vs. €5.73B. Free cash flow turned negative at €99M, with full-year guidance cut to 35%-55%. Restructuring costs reached €1.1B, and technical support at €7.50 was breached.