TLDR
- Nokia’s Q3 comparable operating profit rose 35% to 605 million euros, well above the 453 million euro estimate.
- Net sales climbed 10% to 5.15 billion euros, ahead of the 5.05 billion euro consensus.
- Sales to AI and cloud customers grew 123%, and orders from that group rose 118% to 1.5 billion euros.
- Nokia kept its 2026 comparable operating profit outlook at 2.1 billion to 2.6 billion euros.
- The CEO expects Optical and IP Networks to grow 25% to 30% in 2027.
Nokia (NOKIA) stock was down about 2% on Thursday, even after the company beat Wall Street’s earnings estimates. The stock is still up 48% year-to-date.
The Finnish telecom equipment maker reported third-quarter comparable operating profit of 605 million euros, or about $680 million. That compares with 448 million euros a year earlier, a gain of 35%.
Analysts had expected far less. The company-provided poll average sat at 453 million euros, so the result beat it by a wide margin.
NOKIA $NOK Q3’26 EARNINGS HIGHLIGHTS
🔹 Net Sales: €5,154M (Est. €5.04B) 🟢; +10% YoY
🔹 Adj. EPS: €0.09 (Est. €0.06) 🟢; +50% YoY
🔹 Comparable Gross Margin: 44.6%; -20 bps YoY
🔹 Comparable Oper Profit: €605M (Est. €442M) 🟢FY26 Guide:
🔹 Comparable Oper Profit:… pic.twitter.com/2IbWdpVnoG— Wall St Engine (@wallstengine) October 22, 2026
Comparable net sales rose 10% to 5.15 billion euros. The consensus was 5.05 billion euros.
Comparable operating margin widened to 11.7% from 9.5% a year ago. That is a 2.2 percentage point jump in one year.
AI and cloud orders drive the quarter
The main story was demand from AI and cloud customers. Sales to that group surged 123% from a year earlier.
Order intake from those customers rose 118% to 1.5 billion euros. That gives Nokia a decent pipeline heading into the final quarter.
Network Infrastructure led the way, with sales up 15% in constant currency. Within that unit, IP Networks grew 43% and Optical Networks rose 18%.
Mobile Infrastructure sales grew 5%. Part of that gain came from revenue pulled forward from the fourth quarter, the company said.
Reported profit tells a different story
Not every number looked as good. Reported operating profit fell 22% to 196 million euros.
The drop came from restructuring and integration costs. Nokia booked 357 million euros in restructuring-related charges during the quarter.
That gap between comparable and reported profit may explain some of the cautious reaction in the stock. Traders often look past a beat when the bottom line shows a decline.
Nokia held its full-year outlook steady. It still expects 2026 comparable operating profit of 2.1 billion to 2.6 billion euros.
For the fourth quarter, the company expects sales to rise 20% to 24% from the third quarter. That is a big step up in just three months.
CEO Justin Hotard said growth is accelerating and operating leverage is becoming more visible. He added that he is confident in the long-term value the team is creating for shareholders.
Hotard also gave a look at 2027. He expects the combined Optical and IP Networks businesses to grow between 25% and 30% next year, backed by AI infrastructure demand.
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