Nokia Beats Q3 Estimates as AI and Cloud Sales Surge 123%
Nokia beat Q3 revenue and EPS estimates as net sales to AI and cloud customers grew 123% and comparable operating margin expanded 220 basis points to 11.7%. It lowered its capex and cash conversion ranges.
Nokia (NOK) reported third-quarter net sales of €5.15 billion, about $5.79 billion, ahead of the $5.66 billion consensus, and comparable EPS of about $0.101 against $0.067 expected. Net sales rose 10% (9% on a constant currency and portfolio basis), and net sales to AI and cloud customers surged 123%. Comparable operating profit was €605 million, an 11.7% margin that was up 220 basis points. Nokia reports in euros; dollar figures here are approximate, at €1 = $1.1229 as used in the summary supplied. Figures come from Nokia's Q3 2026 interim report.
Q3 results
| Measure | Q3 2026 | Change |
|---|---|---|
| Net sales | €5,154M (about $5.79B) | +10% (+9% cc and portfolio) |
| Comparable gross margin | 44.6% | −20 bps |
| Reported gross margin | 42.2% | −220 bps |
| Comparable operating profit | €605M (about $679M) | Margin 11.7%, +220 bps |
| Reported operating profit | €196M | Margin 3.8%, −160 bps |
| Comparable EPS, diluted | €0.09 (about $0.101) | — |
| Reported EPS, diluted | €0.03 (about $0.034) | — |
| Net cash and interest-bearing investments | €2,584M | −14% from €3,001M |
The dollar-converted revenue beat is about 2.2%, and the EPS beat is about 51% on a small base, by our calculation. The gap between comparable and reported results reflects restructuring and other items; Nokia expects €1.1 billion of restructuring charges this year. Net sales to AI and cloud customers grew 123%, and order intake grew 118%; Nokia's CEO cited about €1.5 billion (about $1.68 billion) in new orders.
Segment results
| Segment | Net sales | Growth | Operating profit | Margin |
|---|---|---|---|---|
| Network Infrastructure | €2,158M | +17% (+15% cc) | €216M | 10.0% |
| Mobile Infrastructure | €2,902M | +5% | €420M | 14.5% |
| Portfolio Businesses | €96M | −1% (−2% cc) | €3M | 3.1% |
Within Network Infrastructure, IP Networks grew 43% and Optical Networks grew 18%. In dollars at the supplied rate, the three segments were about $2.42 billion, $3.26 billion and $108 million.
2026 outlook
| Item | Outlook |
|---|---|
| Comparable operating profit | €2.1B–€2.6B (about $2.36B–$2.92B), at EUR:USD 1.14 |
| Network Infrastructure net sales growth | 12%–14% (updated) |
| Capex | €750M–€850M (about $842M–$954M), lowered |
| Free cash flow conversion | 35%–55% of comparable operating profit, lowered |
| Comparable financial income and expenses | Positive €300M–€400M (updated) |
| Comparable tax rate | About 26% (updated) |
| Restructuring charges / cash outflows | €1.1B / €800M–€900M (updated) |
| Q4 net sales | Up 20%–24% quarter over quarter |
Nokia plans an extra €400 million of working capital investment this year and expects a €500 million cash tax outflow. A 20%–24% sequential increase implies fourth-quarter net sales of roughly €6.19 billion–€6.39 billion, by our calculation. The headline comparable operating profit range is unchanged.
Developments and dividend
Nokia said its Infinera integration remains on track to finish by the end of 2026, a year ahead of plan, with €200 million of net synergies. Nokia, T-Mobile US (TMUS) and NVIDIA (NVDA) also completed what Nokia calls the first AI-RAN call on a live operator network, and Nokia is moving toward commercial deployment. The board approved a dividend of €0.03 per share (about $0.034), with a record date of October 27 and payment on November 5, leaving up to €0.03 per share of the authorization.
Sources: Nokia Corporation Interim Report for Q3 2026, with consensus estimates and dollar conversions as shown in the summary supplied. This is informational, not a recommendation to buy or sell.
Readers also read
MarketCatalyst LLC is not a registered investment advisor and does not manage client assets. Content on this platform is provided for informational and educational purposes only. It is not investment advice, and MarketCatalyst is not a stock-picking or trade-alert service. Trading stocks and options involves risk, including the possible loss of principal. Consider your own goals, time horizon, and risk tolerance, and consult a qualified financial advisor before making any investment decision.