Nokia's Q1 Earnings Match Estimates on Higher Revenues

Nokia CorporationNOK reported mixed first-quarter 2026 results, with the bottom line matching the Zacks Consensus Estimate but the top line missing the same. The company's top line increased year over year, primarily owing to growth in optical networks in the Network Infrastructure segment.

NOK’s Net Income

Nokia reported a net income of €87 million ($101.8 million) or an income of €0.02 (2 cents) per share in the first quarter against a net loss of €60 million or €0.01 in the year-ago quarter. Higher net sales supported profits.

Comparable profit was €295 million ($345.1 million) or €0.05 (6 cents) per share, down from €153 million or €0.03 in the year-earlier quarter. The bottom line matched the Zacks Consensus Estimate of 6 cents.

NOK’s Revenues

Quarterly net sales were €4.50 billion ($5.27 billion), up 2% from €4.39 billion in the year-ago quarter. Growth was primarily driven by strength in Network Infrastructure, which offset weakness in certain other segments. However, revenues missed the Zacks Consensus Estimate of $5.40 billion.

Net sales from Network Infrastructure totaled €1.83 billion ($2.14 billion), increasing from €1.64 billion in the year-ago quarter. On a constant currency basis, IP Networks recorded 3% year-over-year growth, supported by demand from AI and cloud customers. Revenues from Optical Networks surged 20% year over year, driven by strong traction, particularly in the Americas. Meanwhile, Fixed Networks declined 13% year over year, reflecting a strategic shift toward higher-margin products, with stable fiber deployments partially offset by weaker demand in certain areas.

Mobile Infrastructure generated revenues of €2.50 billion ($2.93 billion), down 3% year over year on a reported basis, while increasing 3% on a constant currency basis. Growth was driven by strength in Core Software and Technology Standards, partially offset by stable performance in Radio Networks.

Net sales from Portfolio Businesses were €173 million ($202.43 million), down 2% year over year on a reported basis but up 4% on a constant currency basis. Growth in Enterprise Campus Edge and Microwave Radio was partially offset by a decline in Fixed Wireless Access product sales. 

Nokia Technologies (reported under Technology Licensees) contributed €385 million ($450.49 million) compared with €369 million in the year-ago quarter. Net sales increased 10% on a constant currency basis, supported by new licensing deals in consumer electronics and multimedia.

Region-wise, net sales from the EMEA region increased to €2.00 billion ($2.34 billion) from €1.84 billion in the year-earlier quarter, reflecting solid growth in the region. 

Revenues in the APAC region declined to €963 million ($1.13 billion) from €1.06 billion in the year-ago quarter, impacted by continued weakness in regional demand.
 
The Americas region generated net sales of €1.54 billion ($1.80 billion), up from €1.48 billion in the prior-year quarter, supported by growth across key segments, particularly Network Infrastructure.

NOK’s Other Details

In the March quarter, the comparable gross margin was 45.5%, up from 42.3% in the year-ago quarter. Comparable operating profit increased 54% year over year to €281 million ($328.80 million). Comparable operating margin expanded to 6.2% from 4.2%.

NOK’s Cash Flow & Liquidity

In the March quarter, Nokia generated €494 million ($578.03 million) in net cash from operating activities. Free cash flow was €629 million ($735.80 million).

As of March 31, 2026, the company had €4.95 billion ($5.69 billion) in cash and cash equivalents, with long-term interest-bearing liabilities of €2.34 billion ($2.69 billion).

Outlook of NOK

For 2026, Nokia expects comparable operating profit in the range of €2.0–€2.5 billion. Free cash flow conversion is projected at 55–75% of comparable operating profit, while capital expenditure is estimated to be in the range of €900–€1,000 million. 

The company has raised its growth outlook for Network Infrastructure, now expecting 12–14% net sales growth in 2026 (on a constant currency and portfolio basis), reflecting accelerating demand from AI and cloud customers.

NOK’s Zacks Rank & Stocks to Consider

NOK currently carries a Zacks Rank #2 (Buy). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GarminGRMN carries a Zacks Rank #2 at present. 

Garmin is set to report first-quarter 2026 results on April 29. The Zacks Consensus Estimate for Garmin’s first-quarter 2026 earnings is pegged at $1.84 per share, up by a penny over the past seven days, indicating a rise of 14.3% from the year-ago quarter’s reported figure.

nVent ElectricNVT has a Zacks Rank #2 at present.

nVent Electric is slated to report first-quarter 2026 results on May 1. The Zacks Consensus Estimate for nVent Electric’s first-quarter 2026 earnings is pegged at 94 cents per share, up by a penny over the past 30 days, indicating a rise of 40.3% from the year-ago quarter’s reported figure.

Monolithic Power SystemsMPWR carries a Zacks Rank #2 at present.

It is set to report first-quarter 2026 results on April 30. The Zacks Consensus Estimate for Monolithic Power Systems’ first-quarter earnings is pegged at $4.89 per share, unchanged over the past 60 days, indicating a rise of 21% from the year-ago quarter’s reported figure. 

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