Nokia Q4 2025 Results Beat Estimates Amid Soft 2026 Guidance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Earnings Beat: Nokia's Q4 2025 net sales rose approximately 3% year-over-year to €6.1 billion, exceeding market expectations and highlighting strong performance in the network infrastructure segment.
- Infrastructure Surge: Network Infrastructure sales jumped 19% year-over-year to €2.41 billion in Q4, reflecting robust demand from AI and cloud customers, which kept the order intake above one.
- Profit Guidance Downgrade: Although Q4 comparable operating profit was €1.06 billion, slightly below the €1.01 billion analyst estimate, the 2026 guidance of €2 billion to €2.5 billion falls short of the consensus of €2.37 billion, indicating a somewhat conservative outlook.
- Leadership Changes: Nokia's Board Chair Sari Baldauf will step down, with Timo Ihamuotila proposed as the new chair and Meredith Whittaker nominated as a new board member, indicating a shift in governance structure.
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Analyst Views on NOK
Wall Street analysts forecast NOK stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NOK is 7.36 USD with a low forecast of 6.50 USD and a high forecast of 8.50 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 6.940
Low
6.50
Averages
7.36
High
8.50
Current: 6.940
Low
6.50
Averages
7.36
High
8.50
About NOK
Nokia Oyj is a Finland-based company engaged in the network and Internet protocol (IP) infrastructure, software, and related services market. The Company's businesses include Nokia Networks and Nokia Technologies. The Company's segments include Ultra Broadband Networks, IP Networks and Applications, and Nokia Technologies. The Ultra Broadband Networks segment comprises Mobile Networks and Fixed Networks operating segments. The IP Networks and Applications segment comprises IP/Optical Networks and Applications & Analytics operating segments. The Applications & Analytics operating segment offers software solutions spanning customer experience management, network operations and management, communications and collaboration, policy and charging, as well as Cloud, Internet of things (IoT), security, and analytics platforms that enable digital services providers and enterprises to accelerate and optimize their customer experience. The Company has Comptel Oyj among its subsidiaries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nokia to Announce Q4 Earnings on January 29
- Earnings Forecast: Nokia is expected to report Q4 2024 EPS of €0.15 and revenue of €6.08 billion, reflecting growth from €0.18 and €5.98 billion in Q4 2023, indicating robust performance driven by demand for AI and cloud services.
- Strategic Partnership: Nokia has formed a strategic partnership with Nvidia, which includes a $1 billion investment at $6.01 per share, granting Nvidia approximately 3% ownership, aimed at jointly leading the AI-RAN market and advancing next-generation data center networking.
- Financial Targets: At its Analyst Day in November, Nokia set long-term financial targets aiming for double-digit CAGR in operating profit by 2028, planning to achieve this through accelerated growth in AI and cloud, demonstrating confidence in future market opportunities.
- Market Performance: Nokia shares have risen 55.6% over the past year, although Wall Street analysts rate it as Hold with an average price target of $6.70, implying about -3.5% downside, reflecting a cautious outlook on its future growth potential.
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Nokia Q4 2025 Results Beat Estimates Amid Soft 2026 Guidance
- Earnings Beat: Nokia's Q4 2025 net sales rose approximately 3% year-over-year to €6.1 billion, exceeding market expectations and highlighting strong performance in the network infrastructure segment.
- Infrastructure Surge: Network Infrastructure sales jumped 19% year-over-year to €2.41 billion in Q4, reflecting robust demand from AI and cloud customers, which kept the order intake above one.
- Profit Guidance Downgrade: Although Q4 comparable operating profit was €1.06 billion, slightly below the €1.01 billion analyst estimate, the 2026 guidance of €2 billion to €2.5 billion falls short of the consensus of €2.37 billion, indicating a somewhat conservative outlook.
- Leadership Changes: Nokia's Board Chair Sari Baldauf will step down, with Timo Ihamuotila proposed as the new chair and Meredith Whittaker nominated as a new board member, indicating a shift in governance structure.
Continue Reading