Shares of Nokia (NOK -6.11%) are falling on Tuesday, down 5.4% as of 3:40 p.m. ET. The drop comes as the S&P 500 (^GSPC 0.06%) gained 0.1% and the Nasdaq Composite (^IXIC -0.39%) lost 0.3%.

Nokia, the telecom company and once cell-phone giant, announced today that it has revised its guidance ahead of its upcoming earnings release.

Nokia's profit warns of currency and tariff impacts

The Finnish company announced today that it has revised its comparable operating profit guidance for the full year downward. While it had been projecting profits of between 1.9 billion euros to 2.4 billion euros, it now expects between 1.6 billion euros and 2.1 billion euros. Nokia cited currency fluctuations and a weakening U.S. dollar as the primary reason for its revision. It also cited impacts from President Trump's tariffs and those imposed in response by the E.U.

The weakening U.S. dollar is a major concern not just for Nokia, but for companies across the globe who do significant business in the U.S. When Nokia originally set its 2025 guidance, it used an exchange rate of 1.04, which has risen to 1.17, a significant move.

Image source: Getty Images.

The company is struggling

The external pressures of currency movements and tariffs are not helping the already struggling company. Nokia's revenues have fallen significantly over the past few years. From 2022 to 2024, its top line declined from $23.8 billion to $19.2 billion.

I would avoid this stock at the moment. While it could reverse these trends, it's unlikely to do so in the near future, given macro pressures and the fact the stock could fall significantly.