Nokia Corporation Report for Q2 and Half Year 2026

Nokia Co po atio Half Yea fi a cial epo t23 July 2026 at 08:00 EEST

Nokia Co po atio Repo t fo Q2 a d Half Yea 2026

Solid Q2 fueled by g owi g AI & Cloud dema d

• Q2 et sales g ew 9% y-o-y o a co sta t cu e cy basis (+8% epo ted).
• Netwo k I f ast uctu e et sales g ew 12% y-o-y o a co sta t cu e cy basis, led by Optical Netwo ks g owi g 20% a d IP Netwo ks g owi g 16%. Net sales to AI & Cloud custome s g ew 105%.
• Mobile I f ast uctu e et sales g ew with a stable yea -o -yea p ofit co t ibutio d ive by p oduct mix.
• Q2 compa able g oss ma gi expa ded 70bps y-o-y to 46.0%. Repo ted g oss ma gi ose 60bps to 44.6%.
• Q2 compa able ope ati g ma gi i c eased 70bps y-o-y to 9.0%. Repo ted ope ati g ma gi decli ed 430bps to (1.0)% due to a faste pace of est uctu i g.
• Q2 compa able diluted EPS fo the pe iod of EUR 0.07; epo ted diluted EPS fo the pe iod of EUR 0.00.
• Nokia has eclassified two busi esses p eviously i its Po tfolio Busi esses segme t i to disco ti ued ope atio s.
• Ope atio ally, Nokia’s full yea outlook is u cha ged. The p ese tatio of these two busi esses as disco ti ued ope atio s has led to a EUR 0.1 billio tech ical evisio to the full yea compa able ope ati g p ofit a ge. Nokia’s outlook is ow fo EUR 2.1 to 2.6 billio of compa able ope ati g p ofit.

“Q2 demo st ates ou st ategy is delive i g esults. Si ce we set out ou pla late last yea , Team Nokia has focused o maximizi g ou oppo tu ity i the AI supe cycle. I am e cou aged by the executio a d p og ess we have made i a sho t pe iod of time. We e te the seco d half with mome tum a d emai o t ack to delive somewhat above the midpoi t of ou compa able ope ati g p ofit guida ce.

I Q2, ou AI & Cloud o de i take was EUR 2.8 billio , while sales mo e tha doubled yea -o -yea . The st e gth was b oad-based, as we secu ed lo g-te m o de s i both Optical Netwo ks a d IP Netwo ks. We expect a ou d half of these o de s to co ve t to eve ue ove the ext twelve mo ths. Dema d emai s st o g, while supply co ti ues to be the mai i dust y co st ai t, p ompti g ou custome s to place lo ge -te m o de s.

As AI evolves, t usted co ectivity becomes eve mo e c itical a d we a e delive i g ma ket leadi g i ovatio that helps custome s diffe e tiate a d captu e value i this ew e a. Last week we lau ched the i dust y’s fi st comme cial AI-RAN platfo m, which will help custome s u lock mo e f om thei etwo ks, i cludi g mo e tha 100% spect al efficie cy gai s by 2028. These be efits will be ta gible i 5G etwo ks a d the platfo m p ovides a softwa e upg ade path to 6G. This i ovatio is o e example of how we u lock value fo ou custome s a d ge e ate etu s fo ou sha eholde s.”

Justi Hota d, P eside t a d CEO

This is a summa y of the Nokia Co po atio Repo t fo Q2 a d Half Yea 2026 published today. Nokia o ly publishes a summa y of its fi a cial epo ts i stock excha ge eleases. The summa y focuses o Nokia G oup’s fi a cial i fo matio as well as o Nokia’s outlook. The detailed, segme t-level discussio will be available i the complete fi a cial epo t hosted at www. okia.com/fi a cials. I vesto s should ot solely ely o summa ies of Nokia’s fi a cial epo ts a d should also eview the complete epo ts with tables.

FINANCIAL RESULTS

OUTLOOK

¹ Please efe to Alte ative pe fo ma ce measu es sectio i Nokia Co po atio Repo t fo Q2 a d Half Yea 2026 fo a full expla atio of how this te m is defi ed.² Outlook is based o a EUR:USD ate of 1.14 fo the emai de of 2026.

Ope atio ally, Nokia’s outlook is u cha ged fo full yea 2026. Howeve , a cha ge i the p ese tatio of two busi esses (Fixed Wi eless Access CPE a d E te p ise Campus Edge) which a e ow t eated as disco ti ued ope atio s evises the compa able ope ati g p ofit outlook by EUR 0.1 billio . As a esult Nokia’s compa able ope ati g p ofit guida ce a ge is ow EUR 2.1 to 2.6 billio (was EUR 2.0 to 2.5 billio ).

The outlook a d the u de lyi g outlook assumptio s a e fo wa d-looki g stateme ts subject to a umbe of isks a d u ce tai ties as desc ibed o efe ed to i the Risk Facto s sectio late i this elease.

Alo g with Nokia’s official outlook ta get p ovided above, Nokia p ovides the below assumptio s that suppo t the g oup level fi a cial outlook fo 2026.

¹ Net sales g owth assumptio is o a co sta t cu e cy a d po tfolio basis.

RESTRUCTURING UPDATE

Accele atio of est uctu i g actio sCo siste t with Nokia’s objective of i c easi g agility a d eallocati g esou ce towa d g owth oppo tu ities, the compa y has accele ated ce tai est uctu i g actio s. I total, this mea s that Nokia ow expects elated cha ges of EUR 800 millio i 2026.

• 2023 – 2026 est uctu i g p og am: I Oct 2023, Nokia i itiated a p og am to achieve betwee EUR 800 millio a d 1 200 millio i g oss cost savi gs by the e d of 2026. Nokia is cu e tly t acki g to achieve the high-e d of that a ge a d co ti ues to expect EUR 250 millio of est uctu i g cha ges i 2026 elated to the co clusio of the p og am.
• Simplifyi g Nokia’s ope ati g st uctu e i Chi a: I Ja ua y, Nokia a ou ced that havi g take full ow e ship of its joi t ve tu e i Chi a it would i teg ate the ope atio s i to its global ope ati g model. At the time this was expected to take 2-3 yea s with i teg atio cha ges of betwee EUR 350 a d 400 millio a d the expectatio to delive EUR 200 millio i cost savi gs. Nokia ow expects to ecog ize EUR 350 millio of the pla ed i teg atio cha ges by the e d of 2026 as we ta get to complete the i teg atio withi 2 yea s.
• Additio al est uctu i g actio s p ima ily i Eu ope: As a fu the step i simplifyi g Nokia’s ope ati g model a d allocati g esou ces towa ds g owth oppo tu ities, the compa y has al eady i itiated additio al est uctu i g p og ams p ima ily i Eu ope. These p og ams a e expected to lead to est uctu i g cha ges of EUR 200 millio i 2026.

SHAREHOLDER DISTRIBUTION

Divide d

U de the autho izatio by the A ual Ge e al Meeti g held o 9 Ap il 2026, the Boa d of Di ecto s may esolve o the dist ibutio of a agg egate maximum of EUR 0.14 pe sha e to be paid i espect of fi a cial yea 2025. The autho izatio will be used to dist ibute divide d a d/o assets f om the ese ve fo i vested u est icted equity i fou i stallme ts du i g the autho izatio pe iod u less the Boa d decides othe wise fo a justified easo .

O 23 July 2026, the Boa d esolved to dist ibute a divide d of EUR 0.04 pe sha e. The divide d eco d date is 28 July 2026 a d the divide d will be paid o 6 August 2026. The actual divide d payme t date outside Fi la d will be dete mi ed by the p actices of the i te media y ba ks t a sfe i g the divide d payme ts.

Followi g this a ou ced dist ibutio , the Boa d’s emai i g dist ibutio autho izatio is a maximum of EUR 0.06 pe sha e.

ADDITIONAL TOPICS

Busi esses moved to disco ti ued ope atio sI Q2 2026, Nokia classified its Fixed Wi eless Access CPE a d E te p ise Campus Edge busi esses as disco ti ued ope atio s. Nokia eached a ag eeme t to sell its Fixed Wi eless Access CPE busi ess to I seego a d Nokia also deems it highly p obable it will each a ag eeme t to sell E te p ise Campus Edge busi ess. Nokia is today publishi g a sepa ate elease that p ovides a ecast of Nokia’s fi a cial esults fo each qua te i 2025 a d Q1 2026. If Nokia had ot t eated these busi esses as disco ti ued ope atio s i Q2 2026, et sales would have bee EUR 66 millio highe a d compa able ope ati g p ofit would have bee EUR 13 millio lowe .

Nokia acqui es fu the U.S. optical ma ufactu i g capacityNokia co ti ues to expa d its lo g-te m optical compo e t ma ufactu i g pla s. Nokia emai s o t ack with its ew Sa Jose Fab to begi ampi g p oductio late i Q4 2026 a d a ou ced du i g Q2 2026 a i vestme t to i c ease its adva ced test a d packagi g capacity i Pe sylva ia by 10x begi i g i Q3 2026. These i vestme ts suppo t the dema d expected i 2027 a d 2028.As pa t of its lo g-te m capacity pla i g, Nokia has e te ed i to a defi itive ag eeme t to acqui e NXP’s Cha dle Semico ducto Fab icatio campus i A izo a. Subject to the eceipt of ce tai egulato y app ovals, Nokia will i itially lease ma ufactu i g capacity i a po tio of the facility o the site sta ti g i ea ly 2027 a d will co ve t the site to I dium Phosphide semico ducto p oductio fo optical compo e ts. Nokia will the acqui e the full site, with the t a sactio expected to close i Q1 2029. The t a sactio fu the st e gthe s Nokia’s i -house compou d semico ducto ma ufactu i g capabilities th ough the additio of a highly expe ie ced team with deep i dust y expe tise. It also adds U.S.-based I dium Phosphide semico ducto ma ufactu i g capacity at a time whe secu e a d scalable domestic supply is becomi g i c easi gly impo ta t fo the b oade U.S. tech ology ecosystem a d the AI supe cycle build out.

RISK FACTORS

Nokia a d its busi esses a e exposed to a umbe of isks a d u ce tai ties which i clude but a e ot limited to:

• Competitive i te sity, which is expected to co ti ue at a high level as some competito s seek to take sha e;
• Cha ges i custome etwo k i vestme ts elated to thei ability to mo etize the etwo k o oppo tu ities elated to AI a d data ce te g owth;
• Ou ability to e su e competitive ess of ou p oduct oadmaps a d costs th ough additio al R&D i vestme ts;
• Ou ability to p ocu e o ma ufactu e ce tai compo e ts (e.g. semico ducto s), the costs the eof a d ou ability to alig ou i ve to y levels a d supplie commitme ts with custome dema d
• Distu ba ce i the global supply chai ;
• Impact of i flatio , i c eased global mac o-u ce tai ty, majo cu e cy fluctuatio s, cha ges i ta iffs a d highe i te est ates;
• Pote tial eco omic impact a d dis uptio of global pa demics;
• Wa o othe geopolitical co flicts, dis uptio s a d pote tial costs the eof;
• Othe mac oeco omic, i dust y a d competitive developme ts;
• Timi g a d value of ew, e ewed a d existi g pate t lice si g ag eeme ts with lice sees;
• Results i tech ology lice si g; costs to p otect a d e fo ce ou i tellectual p ope ty ights; o -goi g litigatio with espect to lice si g a d egulato y la dscape fo pate t lice si g;
• The outcomes of o -goi g a d pote tial disputes a d litigatio ;
• Ou ability to execute, complete, successfully i teg ate a d ealize the expected be efits f om t a sactio s;
• Timi g of completio s a d accepta ces of ce tai p ojects;
• Ou p oduct a d egio al mix;
• U ce tai ty i fo ecasti g i come tax expe ses a d cash outflows, ove the lo g-te m, as they a e also subject to possible cha ges due to busi ess mix, the timi g of pate t lice si g cash flow a d cha ges i tax legislatio , i cludi g pote tial tax efo ms i va ious cou t ies a d OECD i itiatives;
• Ou ability to utilize ou Fi ish defe ed tax assets a d thei ecog itio o ou bala ce sheet;
• Ou ability to meet ou sustai ability a d othe ESG ta gets, i cludi g ou ta gets elati g to g ee house gas emissio s;

as well the isk facto s specified u de Fo wa d-looki g stateme ts of this elease, a d ou 2025 a ual epo t o Fo m 20-F published o 5 Ma ch 2026 u de Ope ati g a d fi a cial eview a d p ospects-Risk facto s.

FORWARD-LOOKING STATEMENTS

Ce tai stateme ts he ei that a e ot histo ical facts a e fo wa d-looki g stateme ts. These fo wa d-looki g stateme ts eflect Nokia’s cu e t expectatio s a d views of futu e developme ts a d i clude stateme ts ega di g: A) expectatio s, pla s, be efits o outlook elated to ou st ategies, p ojects, p og ams, p oduct lau ches, g owth ma ageme t, lice ses, sustai ability a d othe ESG ta gets, ope atio al key pe fo ma ce i dicato s a d decisio s o ma ket exits; B) expectatio s, pla s o be efits elated to futu e pe fo ma ce of ou busi esses (i cludi g the expected impact, timi g a d du atio of pote tial global pa demics, geopolitical co flicts a d the ge e al o egio al mac oeco omic co ditio s o ou busi esses, ou supply chai , the timi g of ma ket cha ges o tu i g poi ts i dema d a d ou custome s’ busi esses) a d a y futu e divide ds a d othe dist ibutio s of p ofit; C) expectatio s a d ta gets ega di g fi a cial pe fo ma ce a d esults of ope atio s, i cludi g ma ket sha e, p ices, et sales, i come, ma gi s, cash flows, cost savi gs, the timi g of eceivables, ope ati g expe ses, p ovisio s, impai me ts, ta iffs, taxes, cu e cy excha ge ates, hedgi g, i vestme t fu ds, i flatio , p oduct cost eductio s, competitive ess, value c eatio , eve ue ge e atio i a y specific egio , a d lice si g i come a d payme ts; D) ou ability to execute, expectatio s, pla s o be efits elated to t a sactio s, i vestme ts a d cha ges i o ga izatio al st uctu e a d ope ati g model; E) impact o eve ue with espect to litigatio / e ewal discussio s; a d F) a y stateme ts p eceded by o i cludi g “a ticipate”, “co ti ue”, “believe”, “e visage”, “expect”, “aim”, “will”, “ta get”, “may”, “would”, “could“, “see”, “pla ”, “e su e” o simila exp essio s. These fo wa d-looki g stateme ts a e subject to a umbe of isks a d u ce tai ties, ma y of which a e beyo d ou co t ol, which could cause ou actual esults to diffe mate ially f om such stateme ts. These stateme ts a e based o ma ageme t’s best assumptio s a d beliefs i light of the i fo matio cu e tly available to them. These fo wa d-looki g stateme ts a e o ly p edictio s based upo ou cu e t expectatio s a d views of futu e eve ts a d developme ts a d a e subject to isks a d u ce tai ties that a e difficult to p edict because they elate to eve ts a d depe d o ci cumsta ces that will occu i the futu e. Facto s, i cludi g isks a d u ce tai ties that could cause these diffe e ces, i clude those isks a d u ce tai ties ide tified i the Risk Facto s above.

ANALYST WEBCAST

• Please ote that Nokia’s webcast time has cha ged a d will begi o 23 July 2026 at 3.00 p.m. Fi ish time (EEST). The webcast will last app oximately 60 mi utes.
• The webcast will be a p ese tatio followed by a Q&A sessio . P ese tatio slides will be available fo dow load at www. okia.com/fi a cials.
• A li k to the webcast will be available at www. okia.com/fi a cials.
• Media ep ese tatives ca liste i via the li k, o alte atively call +44 20 3428 1399. Co fe e ce ID is 050-573-800.

FINANCIAL CALENDAR

• Nokia pla s to publish its thi d qua te a d Ja ua y-Septembe 2026 esults o 22 Octobe 2026.

About Nokia

Nokia is a global leade i co ectivity fo the AI e a. With expe tise ac oss fixed, mobile, a d t a spo t etwo ks, we’ e adva ci g co ectivity to secu e a b ighte wo ld.

I qui ies:

NokiaCommu icatio sPho e: +358 10 448 4900Email: p ess.se vices@ okia.comMa ia Vaismaa, Vice P eside t, Co po ate Commu icatio s

NokiaI vesto Relatio sPho e: +358 931 580 507Email: i vesto . elatio s@ okia.com

Attachme t

• 2026_Q2_Nokia_ Ea i gs_ elease_E glish