Nokia Oyj (NOK) shares plummeted 9.79% in pre-market trading on Thursday following the release of its first-quarter 2025 earnings report that fell short of analyst expectations. The Finnish telecommunications equipment maker faced challenges on multiple fronts, leading to a significant decline in profitability and raising concerns about future performance.

The company reported a sharp 74% decrease in comparable operating profit, which fell to 156 million euros, well below the average forecast of 243.83 million euros by analysts. This disappointing result was attributed to several factors, including a one-time contract settlement charge with a net impact of 120 million euros in its Mobile Networks division.

Adding to investor concerns, Nokia warned of a potential 20 to 30 million euro impact on second-quarter comparable operating profit due to current trade tariffs. This announcement highlights the company's vulnerability to the evolving global trade landscape and has raised questions about its ability to navigate these challenges effectively.

Despite these headwinds, Nokia maintained its full-year 2025 outlook, with comparable operating profit expected between 1.9 billion and 2.4 billion euros. However, the company acknowledged that achieving the higher end of this range would now be more challenging. Investors appear to be reacting negatively to the earnings miss and the increased uncertainty surrounding Nokia's profitability in the coming quarters.