Factual Summary
Effective January 2026, Nokia Corporation reorganized into a two-segment structure comprising Network Infrastructure and Mobile Infrastructure. Per its FY2025 annual report, operating profit was EUR 885 million and net profit was EUR 660 million, both down from the prior year (operating profit of EUR 1,970 million) (SEC Form 20-F, accession no. 0001628280-26-015034). In Q2 2026 (announced 2026-07-23), net sales grew 9% year-on-year on a constant-currency basis and AI/Cloud segment net sales rose 105%, but reflecting EUR 390 million in restructuring charges in the same quarter, reported operating profit turned to a loss of EUR 50 million. In mid-August 2026, Nokia confirmed plans for the phased closure of its Hangzhou, China R&D facility and layoffs of approximately 1,600 employees in China (Light Reading, 2026-08-14).
Price-Change Context Note
The reference closing price is 10.76 USD (2026-08-14), up from 10.32 USD on 2026-08-12, reflecting a rebound from early-August lows (per stockanalysis.com trading records). This rebound phase overlaps with the 2026-07-23 announcement of doubled Q2 AI/Cloud segment net sales and the 2026-08-04 report of a draft US FCC rule banning imports of Chinese-made optical transceivers.
Business Structure
Effective 2026-01-01, Nokia reorganized from a four-business-group structure into two main operating segments: Network Infrastructure and Mobile Infrastructure (announced 2025-11-19). Non-core businesses are separately managed under Portfolio Businesses. Source: Nokia Newsroom, 2026.
Reference: FY2025 annual report (based on the new segment restructuring) · Source: Nokia Newsroom, 'Nokia provides recast comparative segment results' (2026) (A) · Nokia Technologies figures are based on the patent-licensing agreement net sales run-rate; the share is calculated against the total of the three segments (E)
Q2 2026 (announced 2026-07-23) net sales increased 9% year-on-year on a constant-currency basis. AI/Cloud segment net sales increased 105% year-on-year, with order intake of EUR 2.8 billion. Optical Networks net sales increased 20%. Reflecting EUR 390 million in restructuring charges, reported operating profit turned to a loss of EUR 50 million (versus a profit of EUR 147 million in the year-earlier period). Source: Nokia Corporation Report for Q2 and Half Year 2026, 2026-07-23.
5-Year Financial Trend
| Period | Total Assets | Total Liabilities | Total Equity |
|---|---|---|---|
| 2025 | EUR 37,597M | EUR 16,539M | EUR 21,058M |
| 2024 | EUR 39,149M | EUR 18,402M | EUR 20,747M |
| 2023 | EUR 39,860M | EUR 19,232M | EUR 20,628M |
| 2022 | EUR 42,943M | EUR 21,517M | EUR 21,426M |
| 2021 | EUR 40,049M | EUR 22,587M | EUR 17,462M |
The debt-to-equity ratio (liabilities/equity) improved from 1.29x in 2021 to 0.79x in 2025 (calculated from confirmed financial data, E). The 2025 operating margin was 4.45%, the lowest of the five years (E).
Valuation Metrics (Factual Multiples)
The reference date for these multiples (2026-08-17, stockanalysis.com) differs from the system-confirmed reference date for market cap (2026-08-14); they are shown together as reference multiples.
Peer Comparison
| Company | Market Cap | Revenue (TTM) | Characteristics |
|---|---|---|---|
| Nokia(NYSE: NOK) | 61.79B USD(A) | EUR 19.89B(FY2025 annual) | Optical networking, IP routing, mobile infrastructure, patent licensing |
| Ericsson(NASDAQ: ERIC) | 33.74B USD | 23.48B USD | Mobile RAN-focused, direct competitor in European market |
| Cisco Systems(NASDAQ: CSCO) | 443.17B USD | 63.33B USD | Enterprise networking, routing |
| Ciena(NYSE: CIEN) | 64.27B USD | 5.57B USD | Optical transport specialist, direct competitor in Optical Networks |
Global telecom equipment market revenue share (H1 2025, per Dell'Oro Group) ranks Huawei at 31%, Nokia at 13%, Ericsson at 12%, and ZTE at 10%. Nokia completed its acquisition of Infinera on 2025-02-28, strengthening its optical networking business.
Governance & Capital Structure
BlackRock's stake is based on SC 13G/A (filed 2024-02-02, accession no. 0001086364-24-006213); no updated EDGAR filing has since been identified, so the figure has limited recency (A, as of filing date). The treasury share ratio is calculated by dividing 87,626,482 treasury shares (as of 2026-08-07) by the total shares outstanding of 5,742,239,696 (E).
| Date | Event |
|---|---|
| 2026-03-05 | Filed Form 20-F (FY2025), disclosing transition to the two-segment structure |
| 2026-04-09 | Annual General Meeting (Helsinki): elected Meredith Whittaker as new director, elected Timo Ihamuotila as Chair |
| 2026-04-10 | Executive equity-based incentive award; transferred 4,619,321 treasury shares |
| 2026-08-07 | Transferred 957,142 treasury shares without consideration for performance-based compensation |
| 2026-08-13 | Five executives acquired Nokia shares on the Helsinki exchange at EUR 9.0910 per share (disclosed under EU MAR Article 19) |
The Chair of the Board is Timo Ihamuotila (elected 2026-04-09, succeeding Sari Baldauf), with Thomas Saueressig as Vice Chair. The President and CEO is Justin Hotard (took office 2025-04, formerly head of Intel's Data Center and AI Group), and the CFO is Marco Wirén (in the role since 2020). On 2025-12-12, Nokia completed the acquisition of China Huaxin's approximately 50% stake in Nokia Shanghai Bell, converting it into a wholly owned subsidiary (Form 20-F notes, accession no. 0001628280-26-015034).
Ownership & Trading Flow
Top institutional holding figures are aggregator estimates (stockzoa.com) based on a mix of Q1–Q2 2026 13F filings and have not been cross-checked against original SEC EDGAR filings (E). Nvidia Corp's large holding coincides with the equity investment in Nokia that Nvidia announced in October 2025.
Macro Factors
| Factor | Current Value (Reference Date) | Nokia Linkage |
|---|---|---|
| EUR/USD Exchange Rate | approx. 1.1564–1.1581(2026-08-14 to 08-16) | Affects both the USD translation of EUR-denominated consolidated results and the listed share valuation, with mixed directional impact |
| US 10-Year Treasury Yield | 4.69%(2026-08-17) | Affects the discount-rate environment and growth-stock valuation multiples |
| Telecom Equipment Market Size | USD 695.72B(2026, Mordor Intelligence) | Fragmented competitive landscape, with the top 10 companies accounting for a 21% revenue share (2024) |
| Copper Price | approx. USD 6.55–6.60/lb(2026-08-13 to 08-14) | Input raw material for telecom equipment manufacturing costs (cables, connectors, etc.) |
| EU Discussions on Excluding Huawei/ZTE | Huawei's EU mobile equipment share approx. 25%(2026 estimate) | Exclusion could expand the combined European share of Ericsson and Nokia, alongside concerns over carrier switching costs (reported as up to EUR 40B) |
Global carrier capital expenditure was flat overall in 2025 (Dell'Oro Group). Nokia's AI/Cloud segment net sales rose 105% year-on-year in Q2 2026, coinciding with growing data-center-driven demand for optical networking and IP routing.
Recent News Timeline
| Date | Details |
|---|---|
| 2026-08-17 | News of the closure of the Hangzhou, China R&D facility and layoffs of approximately 1,600 employees spread widely across multiple outlets |
| 2026-08-14 | Helsingin Sanomat first reported plans for the phased closure of the Hangzhou R&D facility; the company officially confirmed the scaling-back of its China operations. Closing price 10.76 USD(+1.89%) |
| 2026-08-12 | Closing price 10.32 USD(+9.32%); cited driver was capital flows related to AI order intake following Q2 earnings |
| 2026-08-11 | Closing price 9.44 USD(+3.40%); cited driver was reports of a draft US FCC ban on Chinese-made optical transceiver imports |
| 2026-08-04 | Cignal AI reported that the US FCC was drafting a rule to ban imports of Chinese-made optical transceivers (not a finalized action) |
| 2026-07-23 | Announced Q2 and H1 2026 results (net sales EUR 4.82B, AI/Cloud segment net sales more than doubled) |
| 2025-12-12 | Legal completion of Nokia Shanghai Bell becoming a wholly owned subsidiary |
| 2025-02-28 | Completed acquisition of Infinera Corporation, incorporated as a wholly owned subsidiary |
Risk Factors
Operating margin declined from 9.72% in 2021 to 4.45% in 2025 (calculated from confirmed financial data, E).
Reflecting EUR 390 million in restructuring charges in Q2 2026, reported operating profit turned to a loss of EUR 50 million.
China net sales declined more than 58%, from approximately EUR 2.2 billion in 2018 to EUR 913 million in 2025, and plans to close the Hangzhou R&D facility and lay off approximately 1,600 employees were reported (2026-08-14).
In global telecom equipment market share, Huawei holds 31% and Nokia 13% (H1 2025, Dell'Oro Group), positioning Nokia between low-cost competitors and higher-margin Western competitors.
With EUR-denominated consolidated financials and a USD-listed share structure, EUR/USD movements affect both earnings translation and share valuation. 2025 results reflected a currency impact of approximately EUR 230 million.
In 2026, Nokia filed suit against the US federal government over Lower Passaic River Superfund cleanup costs in New Jersey (the related claim was reported at approximately USD 3 billion).
Theme Relevance
Fact Highlights
Generated by FomoLog Agent · Data sources: Korea Exchange (KRX) · NASDAQ · DART · SEC EDGAR