Nokia shares fell about 5% on July 23, dropping from near €10 at the open to about €8.66, despite the Finnish telecom equipment maker’s second-quarter results coming in stronger than expected. Based on data from LSEG (London Stock Exchange Group), Nokia’s Q2 2026 comparable operating profit rose 18% year over year to €434 million, beating the average analyst estimate of €382 million.
Nokia Q2 2026 earnings: Comparable operating profit of €434 million, ahead of expectations
The key financial figures from Nokia’s second-quarter earnings are as follows, all sourced from LSEG and Nokia’s official announcement:
Comparable operating profit: €434 million (up 18% year over year; above analysts’ average expectation of €382 million)
Year-over-year net sales: €4.82 billion (above market expectations)
AI and cloud customer sales: €446 million (doubling growth this quarter)
New order value: €2.8 billion
Fixed network segment revenue: down 13% year over year
Nokia stock’s post-earnings move: from nearly €10 to €8.66, a fall of about 5%
Nokia shares briefly neared €10 at the open, but the upward move quickly faded as selling pressure returned; the stock ultimately slid to about €8.66, breaking below the €9 psychological level and down about 5%. Even though the quarter’s actual performance beat expectations, investors appear to be more focused on risks to future growth, including memory supply constraints, weakness in traditional telecom markets, and the large capital spending Nokia needs to expand its AI infrastructure.
AI infrastructure expansion strategy
Nokia CEO Hottad (formerly in charge of Intel’s data center and AI business) led the company’s strategic transition toward AI infrastructure. Nokia strengthened its partnership with Nvidia through a major investment agreement, with an emphasis on developing optical interconnects (as demand for optical interconnects for data center AI workloads continues to rise).
Nokia also launched what it says is the industry’s first commercial AI RAN platform, targeting commercialization in 2027 and pilot deployments starting at the end of 2026. On the manufacturing side, Nokia is investing in building an indium phosphide semiconductor manufacturing plant in San Jose and constructing a facility in Arizona; however, financial returns are expected to take time to show, during which investors face execution and capital expenditure risks.
FAQ
What was Nokia’s comparable operating profit for Q2 2026, and how did it compare with analyst expectations?
According to LSEG data, Nokia’s Q2 2026 comparable operating profit was €434 million, up 18% year over year, and above analysts’ average expectation of €382 million. Year-over-year net sales of €4.82 billion also beat expectations. Despite the results coming in ahead of forecasts, Nokia shares still fell about 5% to about €8.66 on the day.
What warning did Nokia’s CEO give about memory supply?
During the earnings call, Nokia CEO Justin Hottad warned that AI companies’ demand for memory components has surged sharply, leading to supply tightness and rising prices. He said more and more customers are placing longer-term orders, and if the memory shortage persists through 2027, Nokia could face higher input costs and may find it harder to meet customer demand.
How did Nokia’s traditional telecom business perform, and how much did fixed network revenue decline?
Nokia’s fixed network segment recently recorded revenue down 13% year over year, mainly because telecom operators cut infrastructure spending and delayed investments. The ongoing weakness in the traditional telecom market is one of the biggest obstacles to Nokia’s transition, and growth in AI and cloud-related business has not yet been able to continuously offset the decline in traditional business.
