Overview

• Finland connectivity provider's Q1 2026 net sales grew 4% yr/yr on constant currency basis

• Adjusted EPS for Q1 2026 rose to EUR 0.05

• Company saw strong Optical Networks growth and expanded gross margin

Outlook

• Nokia maintains full-year 2026 comparable operating profit guidance of EUR 2.0-2.5 bln

• Company expects 2026 Network Infrastructure net sales to grow 12-14%, with IP and Optical Networks up 18-20%

• Nokia assumes Q2 net sales to rise 5-9% q-o-q and Q2 operating profit to be 12-16% of full-year

Result Drivers

• OPTICAL NETWORKS GROWTH - Optical Networks net sales grew 20%, driven by strong order intake and new design wins, per CEO Justin Hotard

• AI & CLOUD DEMAND - Net sales from AI & Cloud customers grew 49%, with EUR 1 bln in orders booked, reflecting accelerating demand, per CEO Justin Hotard

• PRODUCT MIX SHIFT - Fixed Networks net sales declined 13% due to a strategic shift to higher-margin products, per CEO Justin Hotard

Company press release: ID:nGNEb1mhh8

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Sales		EUR 4.50 bln
Q1 Adjusted EPS		EUR 0.05
Q1 EPS		EUR 0.02
Q1 Gross Margin		44.20%
Q1 Adjusted EBIT Margin		6.20%
Q1 EBIT		EUR 62 mln
Q1 EBIT Margin		1.40%

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 10 "hold" and 8 "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy."

• Wall Street's median 12-month price target for Nokia Oyj is €6.78, about 20.4% below its April 22 closing price of €8.51

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 17 three months ago

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