Nokia Oyj shares tumbled 5.06% during intraday trading on Thursday, reversing sharp pre-market and early-session gains after the Finnish telecom equipment maker reported second-quarter earnings that topped estimates but left some investors questioning the quality of the beat.

The company reported Q2 comparable operating profit of €434 million, up 18% year-over-year and well above consensus, while AI and Cloud sales more than doubled to €446 million. Nokia also raised its full-year comparable operating profit guidance to €2.1–2.6 billion. However, Bernstein analysts noted that the headline beat was materially driven by lumpy licensing revenue within the Mobile Infrastructure unit, while the closely watched Optical Networks segment missed both revenue and adjusted operating profit consensus by around 4%. The guidance raise was also described as a technical revision stemming from the reclassification of two businesses as discontinued operations, rather than an operational upgrade.

The sell-off was exacerbated by profit-taking after Nokia's stock had rallied significantly in the days leading up to the earnings release, creating a "sell-the-news" dynamic once the results were public. Additionally, CEO Justin Hotard flagged that memory chip shortages remain the industry's main supply constraint and could persist through 2027, adding a cautious undertone to an otherwise upbeat report.