$NOK · NOKIA CORP

Nokia reported Q3 2026 results with net sales of EUR 5,154M (+9% constant currency, +10% reported). Comparable operating profit rose 35% y-o-y to EUR 605M (11.7% margin), while reported operating profit fell 22% to EUR 196M (3.8% margin) due to accelerated restructuring and Infinera integration costs. AI & Cloud net sales more than doubled to EUR 631M. Full-year comparable operating profit outlook held at EUR 2.1-2.6B, but free cash flow conversion was cut to 35-55% and restructuring charges raised to EUR 1.1B.

Extended-hours trading shows NOK at $8.58, down 7.34% from the regular close of $9.26. The drop likely reflects concern over the EUR 400M working capital investment increase and FCF conversion guidance cut, despite strong AI-driven revenue growth and unchanged full-year comparable operating profit outlook of EUR 2.1-2.6B.

Nokia's AI & Cloud revenue doubling and EUR 1.5B in new orders signal a credible hyperscaler pivot, but the FCF conversion cut and working capital build raise execution questions.

Nokia's AI & Cloud segment doubling revenue aligns with the broader telecom infrastructure pivot toward hyperscaler AI buildouts. The 25-30% 2027 growth target for combined Optical and IP Networks signals confidence in sustained AI-driven demand.

Nokia flags competitive intensity, supply chain disruption, and customer investment uncertainty tied to AI/data center monetization. Restructuring charges increased to EUR 1.1B for 2026 as the company accelerates simplification efforts.