Nokia Corporation
Half Year financial report
23 July 2026 at 08:00 EEST
Nokia Corporation Report for Q2 and Half Year 2026
Solid Q2 fueled by growing AI & Cloud demand
-- Q2 net sales grew 9% y-o-y on a constant currency basis (+8% reported).
-- Network Infrastructure net sales grew 12% y-o-y on a constant currency
basis, led by Optical Networks growing 20% and IP Networks growing 16%.
Net sales to AI & Cloud customers grew 105%.
-- Mobile Infrastructure net sales grew with a stable year-on-year profit
contribution driven by product mix.
-- Q2 comparable gross margin expanded 70bps y-o-y to 46.0%. Reported gross
margin rose 60bps to 44.6%.
-- Q2 comparable operating margin increased 70bps y-o-y to 9.0%. Reported
operating margin declined 430bps to (1.0)% due to a faster pace of
restructuring.
-- Q2 comparable diluted EPS for the period of EUR 0.07; reported diluted
EPS for the period of EUR 0.00.
-- Nokia has reclassified two businesses previously in its Portfolio
Businesses segment into discontinued operations.
-- Operationally, Nokia's full year outlook is unchanged. The presentation
of these two businesses as discontinued operations has led to a EUR 0.1
billion technical revision to the full year comparable operating profit
range. Nokia's outlook is now for EUR 2.1 to 2.6 billion of comparable
operating profit.
"Q2 demonstrates our strategy is delivering results. Since we set out our plan late last year, Team Nokia has focused on maximizing our opportunity in the AI supercycle. I am encouraged by the execution and progress we have made in a short period of time. We enter the second half with momentum and remain on track to deliver somewhat above the midpoint of our comparable operating profit guidance.
In Q2, our AI & Cloud order intake was EUR 2.8 billion, while sales more than doubled year-on-year. The strength was broad-based, as we secured long-term orders in both Optical Networks and IP Networks. We expect around half of these orders to convert to revenue over the next twelve months. Demand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders.
As AI evolves, trusted connectivity becomes even more critical and we are delivering market leading innovation that helps customers differentiate and capture value in this new era. Last week we launched the industry's first commercial AI-RAN platform, which will help customers unlock more from their networks, including more than 100% spectral efficiency gains by 2028. These benefits will be tangible in 5G networks and the platform provides a software upgrade path to 6G. This innovation is one example of how we unlock value for our customers and generate returns for our shareholders."
Justin Hotard, President and CEO
This is a summary of the Nokia Corporation Report for Q2 and Half Year 2026 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group's financial information as well as on Nokia's outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. Investors should not solely rely on summaries of Nokia's financial reports and should also review the complete reports with tables.
FINANCIAL RESULTS
EUR million (except
for EPS in EUR) Q2'26 Q2'25 YoY change Q1-Q2'26 Q1-Q2'25 YoY change
------------------- ------ ----- ---------- -------- -------- ----------
Reported results
------------------- ------ ----- ---------- -------- -------- ----------
Net sales 4 815 4 443 8% 9 248 8 743 6%
Gross margin % 44.6% 44.0% 60bps 44.6% 43.0% 160bps
Operating
(loss)/profit (50) 147 33 151 (78)%
Operating margin % (1.0)% 3.3% (430)bps 0.4% 1.7% (130)bps
Profit from
continuing
operations 27 99 (73)% 131 60 118%
Loss from
discontinued
operations (22) (3) (39) (23)
Profit for the
period 5 96 (95)% 92 36 156%
EPS for the period,
diluted 0.00 0.02 (100)% 0.02 0.01 100%
Net cash and
interest-bearing
financial
investments 2 776 2 879 (4)% 2 776 2 879 (4)%
------------------- ------ ----- ---------- -------- -------- ----------
Comparable results
------------------- ------ ----- ---------- -------- -------- ----------
Net sales 4 815 4 448 8% 9 251 8 748 6%
Constant currency
and portfolio
YoY change 9% 7%
Gross margin % 46.0% 45.3% 70bps 46.0% 44.1% 190bps
Operating profit 434 367 18% 735 576 28%
Operating margin % 9.0% 8.3% 70bps 7.9% 6.6% 130bps
Profit for the
period 414 252 64% 726 426 70%
EPS for the period,
diluted 0.07 0.04 75% 0.13 0.08 63%
------------------- ------ ----- ---------- -------- -------- ----------
Network Mobile Portfolio
Segment results Infrastructure Infrastructure Businesses
------------------------ ----------------- ----------------- --------------
EUR million Q2'26 Q2'25 Q2'26 Q2'25 Q2'26 Q2'25
------------------------ -------- ------- -------- ------- ----- -------
Net sales 2 037 1 825 2 680 2 531 94 89
YoY change 12% 6% 6%
Constant currency
YoY change 12% 7% 6%
Gross margin % 42.7% 40.3% 49.3% 50.0% 28.7% 16.9%
Operating profit/(loss) 166 117 310 310 0 (11)
Operating margin % 8.1% 6.4% 11.6% 12.2% 0.0% (12.4)%
------------------------ -------- ------- -------- ------- ----- -------
OUTLOOK
Full Year 2026
----------------------------------------------
Comparable operating EUR 2.1 billion to EUR 2.6 billion (technical
profit(1),(2) revision from EUR 2.0 billion to 2.5 billion)
-------------------- ----------------------------------------------
(1) Please refer to Alternative performance measures section in Nokia Corporation Report for Q2 and Half Year 2026 for a full explanation of how this term is defined.
(2) Outlook is based on a EUR:USD rate of 1.14 for the remainder of 2026.
Operationally, Nokia's outlook is unchanged for full year 2026. However, a change in the presentation of two businesses (Fixed Wireless Access CPE and Enterprise Campus Edge) which are now treated as discontinued operations revises the comparable operating profit outlook by EUR 0.1 billion. As a result Nokia's comparable operating profit guidance range is now EUR 2.1 to 2.6 billion (was EUR 2.0 to 2.5 billion).
The outlook and the underlying outlook assumptions are forward-looking statements subject to a number of risks and uncertainties as described or referred to in the Risk Factors section later in this release.
Along with Nokia's official outlook target provided above, Nokia provides the below assumptions that support the group level financial outlook for 2026.
Full year 2026 Comment
--------------------- --------------------------
Net sales: Nokia assumes a
3% to 7% q-o-q increase in
net sales in Q3.
Comparable operating
profit: Nokia assumes
comparable operating
profit will be largely
flat from Q2 into Q3 due
to the phasing of software
revenue recognition. Nokia
then expects a meaningful
H2 seasonality increase in Q4.
--------------------------- --------------------- --------------------------
This incorporates an
assumption for combined IP
Network Infrastructure and Optical Networks to
net sales growth(1) 12 - 14% grow 18-20% in 2026.
--------------------------- --------------------- --------------------------
Comparable financial Positive EUR 150
income and expenses to 250 million
--------------------------- --------------------- --------------------------
Nokia's effective tax rate
Comparable income remains sensitive to
tax rate 26-27% geographic mix.
--------------------------- --------------------- --------------------------
Cash outflows related
to income taxes EUR 500 million
--------------------------- --------------------- --------------------------
Capital expenditures EUR 800 - 900 million Reduced assumption
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