Nokia beats Q2 estimates as sales, comparable earnings, AI demand, and Network Infrastructure improve.
Stock Earnings Results
July 24, 2026
Table of Contents
July 23, 2026
Nokia Corporation (NYSE: NOK) reported second-quarter 2026 results above expectations, supported by higher sales, stronger comparable earnings, AI and cloud demand, margin expansion, and growth in Network Infrastructure.
Nokia is a telecommunications and network technology company that provides mobile networks, optical networking, IP routing, fixed networks, cloud infrastructure, software, and connectivity solutions for telecom providers, enterprises, defense customers, and AI and cloud infrastructure customers.
The dashboard showed EPS of $0.08, above estimates of $0.07, representing a 14.3% earnings surprise. Revenue came in at $5.60 billion, above estimates of $5.59 billion, with revenue growth of 8.5%.
Nokia reported Q2 net sales of EUR 4.82 billion, up 8% year-over-year on a reported basis and 9% on a constant currency basis.
Comparable gross margin expanded 70 basis points to 46.0%.
Comparable operating profit increased 18% to EUR 434 million.
Comparable operating margin increased 70 basis points to 9.0%.
Comparable diluted EPS was EUR 0.07, compared with EUR 0.04 a year earlier.
Reported operating margin declined to negative 1.0%, mainly because of faster restructuring actions.
Nokia said net sales to AI and cloud customers grew 105% year-over-year.
AI and cloud order intake reached EUR 2.8 billion in the quarter.
Management said demand remains strong, while supply remains the main industry constraint, leading customers to place longer-term orders.
Nokia expects about half of those AI and cloud orders to convert into revenue over the next 12 months.
CEO Justin Hotard said Nokia is focused on maximizing its opportunity in the AI supercycle.
Network Infrastructure net sales increased 12% year-over-year on a constant currency basis.
Optical Networks grew 20%, while IP Networks grew 16%.
The growth was driven by AI and cloud demand, telecom providers, and strength in the Americas.
Nokia also said it is expanding optical manufacturing capacity, including a new San Jose fab expected to begin ramping production later in 2026 and additional U.S. capacity tied to its planned acquisition of NXP’s Chandler semiconductor campus in Arizona.
Mobile Infrastructure net sales increased 7% on a constant currency basis.
Radio Networks grew 7%, while Technology Standards grew 15%.
Technology Standards benefited from license agreements signed during the quarter and catch-up net sales.
Mobile Infrastructure operating profit was stable year-over-year, with product mix supporting profitability.
Nokia said its full-year 2026 operating outlook is unchanged.
The company now expects comparable operating profit of EUR 2.1 billion to EUR 2.6 billion, technically revised from EUR 2.0 billion to EUR 2.5 billion because two businesses were reclassified into discontinued operations.
Nokia expects third-quarter net sales to increase 3% to 7% sequentially.
Comparable operating profit is expected to be largely flat from Q2 to Q3 before a meaningful increase in Q4.
Management said Nokia remains on track to deliver somewhat above the midpoint of its comparable operating profit guidance.
Nokia accelerated restructuring actions during the quarter.
The company now expects EUR 800 million of restructuring-related charges in 2026.
That includes the conclusion of its 2023 to 2026 cost savings program, integration of Nokia’s China operations, and additional restructuring actions mainly in Europe.
The faster pace of restructuring pressured reported operating profit, even as comparable margins improved.
Nokia delivered a stronger quarter as AI infrastructure demand became a larger driver of the business.
Comparable EPS beat expectations, net sales grew, margins improved, and AI and cloud orders accelerated. Network Infrastructure was the standout segment, led by optical and IP networking demand tied to AI, cloud, and telecom customers.
The key issue is that reported earnings were pressured by restructuring, while free cash flow was negative in the quarter.
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