Nokia Corporation
Financial Statement Release
29 January 2026 at 08:00 EET
Nokia Corporation Financial Report for Q4 2025 and full year 2025
Fourth quarter in-line with expectations
- Q4 comparable net sales grew 3% y-o-y on a constant currency and portfolio basis (+2% reported) with growth in both Network Infrastructure and Mobile Networks.
- Q4 comparable gross margin expanded 90bps y-o-y to 48.1%, benefiting from strong product mix offsetting a lower contribution from Nokia Technologies. Reported gross margin declined 120bps to 44.9% due to higher restructuring related charges in the fourth quarter.
- Q4 comparable operating margin decreased 90bps y-o-y to 17.3% due to growth investments in Network Infrastructure including the integration of Infinera. Reported operating margin decreased 560bps to 8.8% due to higher restructuring.
- Q4 comparable diluted EPS for the period of EUR 0.16; reported diluted EPS for the period of EUR 0.10.
- Q4 free cash flow of EUR 0.2 billion, net cash balance of EUR 3.4 billion.
- Full year 2025 net sales grew 2% y-o-y on a constant currency and portfolio basis (+3% reported). Comparable operating profit was EUR 2.0 billion and free cash flow was EUR 1.5 billion, equating to FCF conversion of 72%. Full year results are within Nokia’s prior guidance. Comparable diluted EPS of EUR 0.29 reported diluted EPS of EUR 0.12.
- Board proposes dividend authorization of EUR 0.14 per share.
- Nokia introduces financial guidance for 2026 and targets EUR 2.0 to 2.5 billion of comparable operating profit.
This is a summary of the Nokia Corporation Financial Report for Q4 and full year 2025 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group’s financial information as well as on Nokia’s outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at http://www.nokia.com/financials. Investors should not solely rely on summaries of Nokia’s financial reports and should also review the complete reports with tables.
JUSTIN HOTARD, PRESIDENT AND CEO, ON Q4 AND FULL YEAR 2025 RESULTS
In the following quote, net sales comments and growth rates are referring to comparable net sales and are on a constant currency and portfolio basis. References to margins are related to Nokia’s comparable reporting.
Our fourth quarter performance was in line with our expectations, reflecting disciplined execution across the business. Fourth quarter net sales grew 3% to reach EUR 6.1 billion and we generated full year operating profit of EUR 2.0 billion, slightly above the mid-point of our guidance. I want to thank Team Nokia for their disciplined execution and commitment in delivering these results.
Network Infrastructure delivered 7% net sales growth in the fourth quarter including 17% growth in Optical Networks. Order intake was strong across Optical and IP Networks, with book-to-bill remaining above one, driven by demand from AI & Cloud customers. Optical is a critical component of the infrastructure required to support AI at scale, and we are investing with a long-term view. In IP Networks, we made further progress as we work to expand our presence inside the data center which supported the order intake. In the quarter Fixed Networks was flat but this reflected growth in fiber optical line terminals of 16% offset by softness in parts of the portfolio we are de-prioritizing.
Across our mobile-related businesses we remained focused on profitability and disciplined execution. Mobile Networks net sales grew by 6% in Q4 and were flat for the full year. Cloud and Network Services declined 4% in the quarter. Net sales grew 6% for the full year against a market that declined 2% while also delivering 5 points of operating margin expansion driven by our cloud-native core networks. In Nokia Technologies we continued to execute well and maintained a contracted net sales run-rate of EUR 1.4 billion.
During 2025, we repositioned Nokia to sharpen execution and focus on where we see the greatest long-term opportunities. We strengthened our portfolio with the acquisition of Infinera, and set a clear strategy for Nokia for how AI is fundamentally changing the role of networks. We communicated this at our Capital Markets Day and announced the simplification of our operating model into Network Infrastructure and Mobile Infrastructure from the start of 2026.
At the start of 2026, our Mobile Infrastructure segment brought together Core Software, Radio Networks and Technology Standards. This structure is designed to sharpen accountability, improve profitability, and position the business for long-term technology leadership. While near-term demand is driven by 5G technologies and we see promise for OpenRAN, we are also investing to lead in the transition towards AI-native networks and 6G. We believe the NVIDIA partnership we announced in Q4 helps position us favorably to lead this transition.
We believe AI is a long-term structural shift that is expanding the role of networks as intelligence moves beyond data centers into real-world systems. Networks will require performance, security and reliability to support everything from large language models to intelligent agents, augmented reality devices and autonomous robots. Our focus is to deliver these trusted AI-native networks, enabling broad AI adoption, supporting increased productivity and delivering sustainable growth over time.
Looking ahead to 2026, our focus is on disciplined execution to capture growth in AI & Cloud, and increase efficiency while building a high performance culture across Team Nokia. We have fewer, clearer priorities, a simplified operating model, and a strategy we are executing with speed and accountability.
In financial terms – we target EUR 2.0 to 2.5 billion of comparable operating profit in 2026. We see strong demand trends in Network Infrastructure as we ramp new products expanding our presence in AI & Cloud and invest for long-term growth. In Mobile Infrastructure we see a stable market environment and are focused on efficiency and improving profitability. Overall, we expect 2026 will show clear progress towards the long-term targets that we laid out at our Capital Markets Day in November.
Justin Hotard
President and CEO
FINANCIAL RESULTS
| EUR million (except for EPS in EUR) | Q4’25 | Q4’24 | YoY change | Q1-Q4’25 | Q1-Q4’24 | YoY change |
| Reported results | ||||||
| Net sales | 6 125 | 5 983 | 2% | 19 889 | 19 220 | 3% |
| Gross margin % | 44.9% | 46.1% | (120)bps | 43.5% | 46.1% | (260)bps |
| Research and development expenses | (1 375) | (1 136) | 21% | (4 855) | (4 512) | 8% |
| Selling, general and administrative expenses | (880) | (784) | 12% | (3 073) | (2 872) | 7% |
| Operating profit | 540 | 861 | (37)% | 885 | 1 970 | (55)% |
| Operating margin % | 8.8% | 14.4% | (560)bps | 4.4% | 10.2% | (580)bps |
| Profit from continuing operations | 534 | 746 | (28)% | 638 | 1 711 | (63)% |
| Profit/(loss) from discontinued operations | 10 | 67 | (85)% | 22 | (427) | |
| Profit for the period | 544 | 813 | (33)% | 660 | 1 284 | (49)% |
| EPS for the period, diluted | 0.10 | 0.15 | (33)% | 0.12 | 0.23 | (48)% |
| Net cash and interest-bearing financial investments | 3 378 | 4 854 | (30)% | 3 378 | 4 854 | (30)% |
| Comparable results | ||||||
| Net sales | 6 130 | 5 983 | 2% | 19 904 | 19 220 | 4% |
| Constant currency and portfolio YoY change | 3% | 2% | ||||
| Gross margin % | 48.1% | 47.2% | 90bps | 45.1% | 47.1% | (200)bps |
| Research and development expenses | (1 250) | (1 129) | 11% | (4 614) | (4 298) | 7% |
| Selling, general and administrative expenses | (685) | (633) | 8% | (2 485) | (2 405) | 3% |
| Operating profit | 1 058 | 1 086 | (3)% | 2 024 | 2 584 | (22)% |
| Operating margin % | 17.3% | 18.2% | (90)bps | 10.2% | 13.4% | (320)bps |
| Profit for the period | 882 | 977 | (10)% | 1 595 | 2 175 | (27)% |
| EPS for the period, diluted | 0.16 | 0.18 | (11)% | 0.29 | 0.39 | (26)% |
| Business group results | Network Infrastructure | Mobile Networks | Cloud and Network Services | Nokia Technologies | Group Common and Other | |||||
| EUR million | Q4’25 | Q4’24 | Q4’25 | Q4’24 | Q4’25 | Q4’24 | Q4’25 | Q4’24 | Q4’25 | Q4’24 |
| Net sales | 2 407 | 2 031 | 2 502 | 2 545 | 837 | 940 | 384 | 463 | 6 | 6 |
| YoY change | 19% | (2)% | (11)% | (17)% | 0% | |||||
| Constant currency and portfolio YoY change | 7% | 6% | (4)% | (14)% | 0% | |||||
| Gross margin % | 44.6% | 45.4% | 40.1% | 37.3% | 57.9% | 51.4% | 100.0% | 99.8% | ||
| Operating profit/(loss) | 397 | 398 | 283 | 201 | 237 | 222 | 250 | 356 | (110) | (91) |
| Operating margin % | 16.5% | 19.6% | 11.3% | 7.9% | 28.3% | 23.6% | 65.1% | 76.9% | ||
SHAREHOLDER DISTRIBUTION
Dividend
The Board of Directors proposes that the Annual General Meeting 2026 authorizes the Board to resolve on the distribution of an aggregate maximum of EUR 0.14 per share to be paid in respect of the financial year 2025. The authorization would be used to distribute dividend from the retained earnings and/or assets from the reserve for invested unrestricted equity in four installments during the authorization period, in connection with the quarterly results, unless the Board decides otherwise for a justified reason.
Under the current authorization by the Annual General Meeting held on 29 April 2025, the Board of Directors may resolve on the distribution of an aggregate maximum of EUR 0.14 per share to be paid in respect of financial year 2024.
On 29 January 2026, the Board resolved to distribute a dividend of EUR 0.03 per share. The dividend record date is 3 February 2026 and the dividend will be paid on 12 February 2026. The actual dividend payment date outside Finland will be determined by the practices of the intermediary banks transferring the dividend payments.
Following this announced distribution of the fourth installment and executed payments of the previous installments, the Board has no remaining distribution authorization.
OUTLOOK
| Full Year 2026 | |
| Comparable operating profit(1),(2) | EUR 2.0 billion to EUR 2.5 billion |
1Please refer to Alternative performance measures section in Nokia Corporation Financial Report for Q4 and full year 2025 for a full explanation of how this term is defined.
2Outlook is based on a EUR:USD rate of 1.18 for full year 2026.
The outlook, underlying outlook assumptions and Nokia’s long-term target and KPIs are forward-looking statements subject to a number of risks and uncertainties as described or referred to in the Risk Factors section later in this release.
Along with Nokia’s official outlook targets provided above, Nokia provides the below new additional assumptions that support the group level financial outlook for 2026.
| Full year 2026 | Comment | ||
| Q1 Seasonality | Historic seasonality has been a 24% q-o-q decline in Nokia’s net sales excluding Nokia Technologies. Considering the above normal seasonality seen in Q4 2025, Nokia currently expects Q1 2026 net sales to decline somewhat more than normal seasonality with an operating margin only slightly higher than the prior year. | ||
| Network Infrastructure net sales growth | 6 – 8% | Nokia expects net sales growth in Network Infrastructure in 2026 consistent with it’s long-term target of 6-8% CAGR. Growth in combined IP and Optical Networks is expected to also be consistent with the long-term target to grow 10-12% in 2026. | |
| Comparable financial income and expenses | Positive EUR 50 to 150 million | ||
| Comparable income tax rate | ~26-27% | Nokia’s effective tax rate remains sensitive to geographic mix. Considering the geographic mix expected in 2026, Nokia expects a slight increase in its effective tax rate. | |
| Cash outflows related to income taxes | EUR 500 million | ||
| Capital expenditures | EUR 900 – 1 000 million | Nokia expects higher capital expenditures in 2026 primarily related to investments in additional manufacturing capacity to support the growth outlook in Optical Networks. Nokia is also investing in real estate renewal projects impacting capex. | |
| Free cash flow conversion from comparable operating profit | 55% to 75% | FCF conversion will be influenced by customer payment timing, evolution of regional demand and capex timing. | |
| Recurring gross cost savings | EUR 400 million | Related to ongoing cost savings program and not including Infinera-related synergies. | |
| Restructuring and associated charges related to cost savings programs | EUR 250 million | Related to ongoing cost savings program and not including Infinera-related synergies. | |
| Restructuring and associated cash outflows | EUR 450 million | Related to ongoing cost savings program and not including Infinera-related synergies. |
LONG-TERM FINANCIAL TARGET AND KPIs
At its Capital Markets Day on 19 November 2025, Nokia introduced a new long-term financial target for the business separate to Nokia’s official annual financial guidance described above.
| Full year 2028 | |
| Comparable operating profit(1),(2) | EUR 2.7 billion to EUR 3.2 billion |
1 Please refer to Alternative performance measures section in Nokia Corporation Financial Report for Q4 and full year 2025 for a full explanation of how terms are defined.
2 Financial target is based on a EUR:USD rate of 1.17 which was the effective exchange rate at the time of Nokia’s Capital Markets Day.
Nokia also introduced a series of strategic KPIs which best illustrate the expected outcomes of Nokia’s strategy. These KPIs for the business are not part of the group level financial target.
| Net sales growth in Network Infrastructure | Nokia targets 6-8% net sales CAGR during 2025-2028. This includes a 10-12% target for the combined Optical Networks and IP Networks. |
| Network Infrastructure operating margin | 13% to 17% by 2028 |
| Mobile Infrastructure gross margin | 48-50% by 2028 |
| Mobile Infrastructure operating profit | Grow from a base of EUR 1.5 billion |
| Group common and other operating expenses | EUR 150 million operating expenses down from the current EUR 350 million run-rate by 2028. |
| Free cash flow conversion | Nokia targets to deliver free cash flow conversion from comparable operating profit of between 65% and 75%. |
ADDITIONAL TOPICS
Simplifying Nokia’s operating structure in China
In Q4 2025 Nokia took full ownership of its joint venture (Nokia Shanghai-Bell) in China which gives the company greater flexibility to manage its operations in the region. Considering Nokia’s prior ownership share and decision-making rights, the business has already been fully consolidated in Nokia’s financial results. The transaction led to a net cash outflow in Q4 of EUR 0.5 billion, which largely equates to the portion of net cash in the joint venture not owned by Nokia. As part of the integration and alignment to Nokia’s global operating model, Nokia expects to be able to deliver approximately EUR 200 million of synergies with integration costs of approximately EUR 350-400 million over a period of 24 to 36 months.
RISK FACTORS
Nokia and its businesses are exposed to a number of risks and uncertainties which include but are not limited to:
- Competitive intensity, which is expected to continue at a high level as some competitors seek to take share;
- Changes in customer network investments related to their ability to monetize the network or opportunities related to AI and data center growth;
- Our ability to ensure competitiveness of our product roadmaps and costs through additional R&D investments;
- Our ability to procure certain standard components and the costs thereof, such as semiconductors;
- Disturbance in the global supply chain;
- Impact of inflation, increased global macro-uncertainty, major currency fluctuations, changes in tariffs and higher interest rates;
- Potential economic impact and disruption of global pandemics;
- War or other geopolitical conflicts, disruptions and potential costs thereof;
- Other macroeconomic, industry and competitive developments;
- Timing and value of new, renewed and existing patent licensing agreements with licensees;
- Results in brand and technology licensing; costs to protect and enforce our intellectual property rights; on-going litigation with respect to licensing and regulatory landscape for patent licensing;
- The outcomes of on-going and potential disputes and litigation;
- Our ability to execute, complete, successfully integrate and realize the expected benefits from transactions;
- Timing of completions and acceptances of certain projects;
- Our product and regional mix;
- Uncertainty in forecasting income tax expenses and cash outflows, over the long-term, as they are also subject to possible changes due to business mix, the timing of patent licensing cash flow and changes in tax legislation, including potential tax reforms in various countries and OECD initiatives;
- Our ability to utilize our Finnish deferred tax assets and their recognition on our balance sheet;
- Our ability to meet our sustainability and other ESG targets, including our targets relating to greenhouse gas emissions;
as well the risk factors specified under Forward-looking statements of this release, and our 2024 annual report on Form 20-F published on 13 March 2025 under Operating and financial review and prospects-Risk factors.
FORWARD-LOOKING STATEMENTS
Certain statements herein that are not historical facts are forward-looking statements. These forward-looking statements reflect Nokia’s current expectations and views of future developments and include statements regarding: A) expectations, plans, benefits or outlook related to our strategies, projects, programs, product launches, growth management, licenses, sustainability and other ESG targets, operational key performance indicators and decisions on market exits; B) expectations, plans or benefits related to future performance of our businesses (including the expected impact, timing and duration of potential global pandemics, geopolitical conflicts and the general or regional macroeconomic conditions on our businesses, our supply chain, the timing of market changes or turning points in demand and our customers’ businesses) and any future dividends and other distributions of profit; C) expectations and targets regarding financial performance and results of operations, including market share, prices, net sales, income, margins, cash flows, cost savings, the timing of receivables, operating expenses, provisions, impairments, tariffs, taxes, currency exchange rates, hedging, investment funds, inflation, product cost reductions, competitiveness, value creation, revenue generation in any specific region, and licensing income and payments; D) ability to execute, expectations, plans or benefits related to transactions, investments and changes in organizational structure and operating model; E) impact on revenue with respect to litigation/renewal discussions; and F) any statements preceded by or including “anticipate”, “continue”, “believe”, “envisage”, “expect”, “aim”, “will”, “target”, “may”, “would”, “could“, “see”, “plan”, “ensure” or similar expressions. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause our actual results to differ materially from such statements. These statements are based on management’s best assumptions and beliefs in light of the information currently available to them. These forward-looking statements are only predictions based upon our current expectations and views of future events and developments and are subject to risks and uncertainties that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Factors, including risks and uncertainties that could cause these differences, include those risks and uncertainties identified in the Risk Factors above.
ANALYST WEBCAST
- Nokia’s webcast will begin on 29 January 2026 at 11.30 a.m. Finnish time (EET). The webcast will last approximately 60 minutes.
- The webcast will be a presentation followed by a Q&A session. Presentation slides will be available for download at http://www.nokia.com/financials.
- A link to the webcast will be available at http://www.nokia.com/financials.
- Media representatives can listen in via the link, or alternatively call +1-412-317-5619.
FINANCIAL CALENDAR
- Nokia plans to publish its “Nokia in 2025” annual report, which includes the review by the Board of Directors and the audited annual accounts, during the week starting on 2 March 2026.
- Nokia’s Annual General Meeting 2026 is planned to be held on 9 April 2026.
- Nokia plans to publish its first quarter 2026 results on 23 April 2026.
- Nokia plans to publish its second quarter and half year 2026 results on 23 July 2026.
- Nokia plans to publish its third quarter and January-September 2026 results on 22 October 2026.
About Nokia
Nokia is a global leader in connectivity for the AI era. With expertise across fixed, mobile, and transport networks, we’re advancing connectivity to secure a brighter world.
Inquiries:
Nokia
Communications
Phone: +358 10 448 4900
Email: press.services@nokia.com
Maria Vaismaa, Vice President, Global Media Relations
Nokia
Investor Relations
Phone: +358 931 580 507
Email: investor.relations@nokia.com
Attachment
