Key Takeaways
- Nokia shares climbed +1.3% to €9.286 following a stronger-than-anticipated Q2 earnings report
- Comparable operating profit reached €434 million, marking an 18% year-over-year increase and surpassing the ~€382 million consensus
- Revenue from AI and cloud customers more than doubled with a 105% YoY surge; quarterly orders nearly tripled versus Q1
- Management upgraded full-year comparable operating profit outlook to €2.1–€2.6 billion
- JPMorgan maintained its Overweight stance with an €18.00 target price after reviewing the quarterly results
Nokia delivered results that exceeded Wall Street projections on July 23, 2026, propelling shares higher at the opening bell before finishing the session up 1.3% at €9.286. The stock reached an intraday peak of €9.800 during trading.
Nokia – Q2 2026 Earnings$NOK 10.99 [+6.9% Overnight]
✅ Revenue: €4.82B (Est: ~€4.75B) [+8% YoY]✅ Comparable Operating Profit: €434M (Est: €382M) [+18% YoY]
Comparable Gross Margin: 46.0%
Comparable Diluted EPS: €0.07 [+75% YoY]Additional Metrics:
AI & Cloud Customer…— Sam Badawi (@Sam_Badawi) July 23, 2026
Revenue totaled €4.82 billion, representing a 9% increase on a constant-currency basis. Comparable operating profit landed at €434 million, marking an 18% jump from the prior year and comfortably exceeding the Street’s approximately €382 million estimate.
The standout performance came from AI and cloud customers. Revenue from this segment skyrocketed 105% year-over-year. Orders from AI and cloud clients reached €2.8 billion during the quarter — roughly triple the €1 billion recorded in the first quarter.
The Network Infrastructure division, which benefits most directly from AI infrastructure investments, delivered 12% constant-currency revenue expansion. Within this segment, Optical Networks revenue jumped 20% while IP Networks advanced 16%.
Management Lifts Outlook, Announces Shareholder Payout
Nokia increased its full-year comparable operating profit forecast to a band of €2.1–€2.6 billion. Management also announced a dividend payment of €0.04 per share.
Following the quarterly release, JPMorgan reaffirmed its Overweight recommendation and €18.00 price objective, highlighting the impressive EBIT outperformance. SEB Equities had previously raised Nokia to Buy before earnings, emphasizing the AI and cloud expansion opportunity.
Shares relinquished some early-session momentum as the day progressed. Market participants balanced the positive guidance revision against management’s disclosure of an additional €200 million in European restructuring expenses.
Competitive Context With Ericsson
Competitor Ericsson had earlier highlighted increasing AI-related component expenses as an industry challenge. This commentary had created a modest headwind for Nokia shares in the weeks preceding this earnings announcement.
Nokia’s second-quarter performance effectively countered those concerns, demonstrating that robust demand is outpacing input cost inflation.
Finland’s primary equity index, the OMX Helsinki 25, had already posted gains in the session before Nokia’s earnings release.
From a valuation perspective, Nokia currently trades at a P/E multiple of 61.11x, significantly elevated compared to its historical median of 22.66x. The company’s GF Score registers at 58 out of 100, indicating moderate prospects for long-term returns.
Balance sheet indicators remain healthy, with a current ratio of 1.57 and a debt-to-equity ratio of 0.16. There have been no reported insider transactions during the trailing 12-month period.
Nokia’s market capitalization stands at roughly $57.39 billion. Shares opened the session at €9.762 before settling at €9.286, representing a 1.3% daily advance.
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