Introduction
Nokia reported strong Q3 2026 growth. Net sales rose 9% year on year at constant currency (+10% reported), led by Network Infrastructure and AI & Cloud customers 1. Comparable operating profit rose 35%, while reported profit was held back by EUR 357 million of restructuring and associated charges 3. Strategically, Nokia is simplifying its portfolio and expects to complete the Infinera integration by the end of 2026, one year ahead of plan, with EUR 200 million of net synergies 1. The full-year 2026 outlook is unchanged 1.
Key Metrics
Q3 2026 | Q3 2025 | Change | |
|---|---|---|---|
Net sales | 5,154 1 | 4,700 1 | 9.7% |
Comparable operating profit | 605 1 | 448 1 | 35.0% |
Comparable operating margin, % | 11.7 1 | 9.5 1 | +2.2 pp |
Reported operating profit | 196 3 | 252 3 | -22.2% |
Reported operating margin, % | 3.8 1 | 5.4 1 | -1.6 pp |
Comparable profit from continuing operations | 498 1 | 334 1 | 49.1% |
Reported profit from continuing operations | 176 1 | 90 1 | 95.6% |
Net cash and interest-bearing financial investments | 2,584 1 | 3,001 1 | -13.9% |
Margin changes are in percentage points: comparable operating margin +2.2 pp (+220 bps); reported operating margin -1.6 pp (-160 bps).
Comparable diluted EPS from continuing operations was EUR 0.09 (EUR 0.06); reported diluted EPS was EUR 0.03 (EUR 0.01).
Key Observations
AI & Cloud is the growth engine. Nokia secured EUR 1.5 billion of new orders 1.
Network Infrastructure net sales grew 15% at constant currency, with IP Networks up 43% and Optical Networks up 18% 3. Management expects the combined Optical and IP businesses to grow 25–30% in 2027 1.
Mobile Infrastructure net sales grew 5% to EUR 2,902 million, partly because revenue was pulled forward from Q4 into Q3. Segment operating margin was 14.5% (12.9%). Core Software fell 13% at constant currency 5.
Regions: net sales grew in the Americas (EUR 1,833 million, +9%), APAC (EUR 1,169 million, +7%) and EMEA (EUR 2,152 million, +12%) 6.
Margins: comparable gross margin was 44.6% (44.8%), broadly stable and affected by product mix. Reported gross margin fell 220 bps to 42.2% on higher restructuring costs 3.
Restructuring: restructuring and associated charges were EUR 357 million (EUR 44 million in Q3 2025). Amortization of acquired intangibles dropped to EUR 46 million (EUR 115 million) 6.
Cash flow weakened. Free cash flow was negative EUR 99 million, with about EUR 560 million of net working capital outflow and about EUR 290 million of restructuring cash outflow. Total cash was EUR 5,023 million 7 3.
Corporate matters:
Fixed Wireless Access CPE and Enterprise Campus Edge are now reported as discontinued operations, with a Q3 2026 loss of EUR 21 million.
Emma Falck became President of Mobile Infrastructure on 17 August 2026.
The Board declared a dividend of EUR 0.03 per share (record date 27 October 2026, payment 5 November 2026) 2.
Outlook
Full year 2026: Nokia's outlook for comparable operating profit is EUR 2.1–2.6 billion. It expects to land above the midpoint, supported by a typically strong Q4 2.
Q4 2026 net sales: Nokia assumes a 20–24% quarter-on-quarter increase.
Network Infrastructure growth: 12–14% for 2026, with combined Optical and IP growth somewhat above the earlier 18–20% assumption.
Financial items: comparable financial income and expenses of positive EUR 300–400 million, and a comparable tax rate of about 26%.
Cash and costs:
Free cash flow conversion is lowered to 35–55% of comparable operating profit, reflecting about EUR 400 million of additional working capital investment.
Restructuring charges are now about EUR 1,100 million, with cash outflows of EUR 800–900 million.
Capital expenditure is EUR 750–850 million.
Near-term profitability should be supported by operating leverage and the AI & Cloud order backlog. Cash generation will stay under pressure from working capital and restructuring.
Sources
Nokia Oyj · Interim Report for Q3 2026 · p. 1
Nokia Oyj · interim report 2026 Q3 - nokia · p. 3
Nokia Oyj · Shareholder distribution Dividend (cont.) · 2026 · p. 5
Nokia Oyj · Shareholder distribution Dividend (cont.) · 2026 · p. 6
Nokia Oyj · Cash and cash flow in Q3 2026 · p. 7
Nokia Oyj · Outlook · 2026 · p. 2