Nokia Oyj
PAR:NOKIA
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Nokia Oyj
Nokia Oyj, a Finnish multinational founded in 1865, has undergone a metamorphosis that mirrors the kaleidoscopic shifts in technology and global markets. Initially immersed in the rudimentary industries of pulp and paper, Nokia embraced a dynamic transformation throughout the twentieth century. With a spirit of innovation, it traversed the realms of rubber, cables, and electronics, culminating in its emergence as a pivotal player in mobile telecommunication in the late 1980s. By the 1990s, Nokia had established itself as the spearhead of the global mobile revolution, bringing to life iconic mobile devices and fundamentally altering communication at a planetary scale. The company’s strategic direction, distinct leadership, and relentless focus on technology and design rendered it a household name, and its portfolio of mobile devices epitomized the cutting edge of consumer tech for over a decade.
In recent years, Nokia's focus has pivoted substantially from consumer electronics to enterprise-level technology services and network solutions. Today, it operates predominantly in the telecommunications infrastructure sector, providing the backbone for global networks with its advanced technology and services. Through its Networks segment, Nokia sells a comprehensive range of products and services encompassing broadband, IP, optical technologies, and cloud networking. The firm also capitalizes on its intellectual property via its Nokia Technologies segment, leveraging innovations through licensing to generate substantial revenues. By positioning itself as an influential force in 5G technology development and deployment, Nokia taps into the growing demand for high-speed, reliable connectivity across sectors, cementing its role as an architect of the digital age.
Nokia Oyj, a Finnish multinational founded in 1865, has undergone a metamorphosis that mirrors the kaleidoscopic shifts in technology and global markets. Initially immersed in the rudimentary industries of pulp and paper, Nokia embraced a dynamic transformation throughout the twentieth century. With a spirit of innovation, it traversed the realms of rubber, cables, and electronics, culminating in its emergence as a pivotal player in mobile telecommunication in the late 1980s. By the 1990s, Nokia had established itself as the spearhead of the global mobile revolution, bringing to life iconic mobile devices and fundamentally altering communication at a planetary scale. The company’s strategic direction, distinct leadership, and relentless focus on technology and design rendered it a household name, and its portfolio of mobile devices epitomized the cutting edge of consumer tech for over a decade.
In recent years, Nokia's focus has pivoted substantially from consumer electronics to enterprise-level technology services and network solutions. Today, it operates predominantly in the telecommunications infrastructure sector, providing the backbone for global networks with its advanced technology and services. Through its Networks segment, Nokia sells a comprehensive range of products and services encompassing broadband, IP, optical technologies, and cloud networking. The firm also capitalizes on its intellectual property via its Nokia Technologies segment, leveraging innovations through licensing to generate substantial revenues. By positioning itself as an influential force in 5G technology development and deployment, Nokia taps into the growing demand for high-speed, reliable connectivity across sectors, cementing its role as an architect of the digital age.
Q4 Performance: Nokia delivered fourth quarter results in line with expectations, with net sales of EUR 6.1 billion (up 3%), operating profit of EUR 1 billion, and free cash flow of EUR 0.2 billion.
Full-Year Results: For 2025, net sales were EUR 19.9 billion and operating profit was EUR 2 billion, slightly above the midpoint of guidance.
AI & Cloud Momentum: Strong growth in Optical Networks (up 17% in Q4) and continued demand from AI and cloud customers, with EUR 2.4 billion in orders from these segments in 2025.
Network Infrastructure: Book-to-bill above 1 in both Optical and IP Networks, indicating robust demand; guidance anticipates 6-8% annual growth through 2028.
Cost and Margin Developments: Gross margin improved (48.1%, up 90 bps YoY), but operating margin declined (17.3%, down 90 bps YoY) due to higher growth investments.
2026 Guidance: Operating profit targeted between EUR 2 billion and EUR 2.5 billion; capex is planned at EUR 900 million to EUR 1 billion, mainly for Optical Networks capacity.
Strategic Moves: Acquisition of Infinera and full ownership of Nokia Shanghai Bell completed; new Mobile Infrastructure and Portfolio Businesses units established.
Cost Initiatives: Continued restructuring and cost-saving programs, with anticipated run rate cost synergies of EUR 200 million from the China JV integration.
