Core Insights - Nokia has been selected to power the Medusa subsea cable system, which aims to enhance connectivity between Europe and North Africa [1][9] - The Medusa cable will connect countries including Morocco, Tunisia, Libya, Algeria, and Egypt, addressing the digital divide in the region [2][9] - The project is designed as an open-access system, facilitating telecom providers' access to advanced connectivity services, supporting 5G, cloud infrastructure, and AI technologies [2][9] Group 1 - The Medusa subsea cable system will create a high-capacity digital corridor, promoting innovation and economic growth across Europe and North Africa [1][4] - The cable utilizes Nokia's 1830 GX Series platform and ICE7 coherent optics, capable of transmitting tens of terabits per second per fiber pair, ensuring high-capacity and low-latency connectivity [2][9] - The initiative is expected to deliver faster and more reliable connectivity to millions, fostering deeper integration into the global digital economy [4][9] Group 2 - The partnership with Nokia is aimed at providing scalable and cost-effective connectivity solutions, meeting current demands while preparing for future infrastructure needs [3][4] - The project is positioned to support the rollout of 5G and the increasing bandwidth demands driven by AI and future technologies [2][9] - Nokia's involvement in the Medusa project underscores its commitment to creating transformative technology that bridges continents and enhances digital services [4][9]

Core Insights - Nokia has been selected to power the Medusa subsea cable system, which aims to enhance connectivity between Europe and North Africa [1][9] - The Medusa cable will connect countries including Morocco, Tunisia, Libya, Algeria, and Egypt, addressing the digital divide in the region [2][9] - The project is designed as an open-access system, facilitating telecom providers' access to advanced connectivity services, supporting 5G, cloud infrastructure, and AI technologies [2][9] Group 1 - The Medusa subsea cable system will create a high-capacity digital corridor, promoting innovation and economic growth across Europe and North Africa [1][4] - The cable utilizes Nokia's 1830 GX Series platform and ICE7 coherent optics, capable of transmitting tens of terabits per second per fiber pair, ensuring high-capacity, low-latency connectivity [2][9] - The initiative is expected to deliver faster and more reliable connectivity to millions, fostering deeper integration into the global digital economy [4][9] Group 2 - The partnership with Nokia is aimed at providing scalable and cost-effective connectivity solutions, meeting current demands while preparing for future infrastructure needs [3][4] - The project is positioned to support the rollout of 5G and the increasing bandwidth demands driven by AI and future technologies [2][9] - Nokia's involvement in the Medusa project underscores its commitment to creating transformative technology that bridges continents and enhances digital services [4][9]

Market Overview - The market capitalization of major US stocks shows varied performance, with Oracle at 762.30 billion, Mastercard at 321.36 billion, and Visa at 770.15 billion, reflecting increases of +0.66%, +0.86%, and +0.68% respectively [3] - Exxon Mobil's market cap is 679.53 billion, with a slight decrease of -0.98%, while Johnson & Johnson and Netflix show minor changes of -0.08% and -0.05% respectively [3] - Companies like Wells Fargo and Cisco have market caps of 270.15 billion and 279.59 billion, with respective increases of +0.98% and -0.58% [3] Notable Stock Movements - T-Mobile US Inc experienced a significant increase of +6.20%, reaching a market cap of 272.19 billion [3] - General Electric and Coca-Cola saw market caps of 285.05 billion and 298.76 billion, with increases of +0.37% and +0.91% respectively [3] - Companies like Disney and Goldman Sachs have market caps of 229.06 billion and 221.80 billion, with slight changes of +0.01% and -0.60% [3] Sector Performance - The technology sector shows mixed results, with Intel at 991.05 billion, down -3.28%, while AMD increased by +2.46% to 254.92 billion [5] - The consumer goods sector is represented by companies like Procter & Gamble and Coca-Cola, with market caps of 371.68 billion and 298.76 billion, showing slight increases [3][4] - The energy sector, represented by Exxon Mobil and Chevron, shows varied performance, with Exxon down -0.98% and Chevron up +0.66% [3] Summary of Key Companies - Oracle's market cap stands at 762.30 billion, reflecting a positive trend [3] - Mastercard and Visa show strong performance with market caps of 321.36 billion and 770.15 billion, both increasing [3] - Companies like Pfizer and Comcast have market caps of 1579.81 billion and 1332.00 billion, with Pfizer showing minimal change and Comcast down -3.16% [4][5]

Core Insights - Nokia Corporation reported weaker-than-expected second-quarter 2025 results, with both revenue and net income missing the Zacks Consensus Estimate. The top line increased year over year due to growth in fixed and optical networks within the Network Infrastructure segment, alongside improvements in Cloud and Network services. However, weakness in Mobile Networks offset these gains [1][12]. Financial Performance - Net income from continuing operations was €83 million ($94.12 million) or €0.02 (2 cents) per share, down from €370 million or €0.07 in the same quarter last year. The decline was attributed to lower net sales from Mobile Networks and higher operating expenses [2]. - Comparable profit was €236 million ($267 million) or €0.04 (5 cents) per share, down from €328 million or €0.06 in the year-earlier quarter, missing the Zacks Consensus Estimate of 7 cents [3]. - Quarterly net sales reached €4.54 billion ($5.15 billion), a 2% increase from €4.46 billion in the previous year, but missed the Zacks Consensus Estimate by $5.36 billion [4]. Segment Performance - Net sales from Network Infrastructure totaled €1.9 billion ($2.15 billion), up from €1.52 billion in the year-ago quarter, beating the revenue estimate of €1.75 billion. IP Networks recorded 3% growth year over year, driven by demand in China, Europe, and the Americas [5]. - Mobile Networks generated revenues of €1.73 billion ($1.82 billion), down 17% year over year, missing the estimate of €1.94 billion due to soft demand in various regions [6]. - Cloud and Network Services reported net sales of €557 million ($631 million), up 10% year over year, but missed the estimate of €755 million [7]. - Nokia Technologies contributed €357 million ($404 million), slightly up from €356 million in the previous year, supported by a recent licensing agreement [8]. Regional Performance - Net sales from the EMEA region increased to €1.954 billion from €1.839 billion in the year-ago quarter, while APAC revenues declined to €1.02 billion, down 3% year over year due to Mobile Networks weakness [9][10]. Operational Metrics - The comparable gross margin was 44.7%, matching the previous year's figure, while the comparable operating profit decreased 29% year over year to €301 million ($341 million) [13]. - Nokia generated €209 million ($237 million) in net cash from operating activities, down from €489 million in the prior-year quarter. As of June 30, 2025, the company had €4.79 billion ($5.63 billion) in cash and cash equivalents [14]. Future Outlook - For 2025, Nokia expects a comparable operating profit in the range of €1.9-€2.1 billion, with free cash flow estimated at 50-80% of comparable operating profit. Capital expenditure is projected to be €650 million [15]. - The company anticipates strong sales growth in the Network Infrastructure and Cloud and Network Services segments, while expecting stable net sales from the Mobile Networks segment [16].

Group 1 - Major stock indices futures are up, with Dow futures rising by 0.50%, S&P 500 futures by 0.39%, and Nasdaq futures by 0.20% [1] - The Trump administration has announced an AI action plan, leading to a surge in chip stocks, with Broadcom up 2.6%, Nvidia up 1.5%, and AMD up 1.29% [1] - Tesla reported Q2 revenue of $22.5 billion, a 12% year-over-year decline, with earnings per share at $0.40, down 23% from the previous year, resulting in a stock drop of 6.56% [1] Group 2 - Google reported Q2 revenue of $96.4 billion and earnings per share of $2.31, exceeding analyst expectations, leading to a stock increase of 3.1% [2] - IBM's Q2 revenue was $73.9 billion, slightly below analyst expectations of $74.3 billion, resulting in a stock decline of 5.35% [3] - T-Mobile added 1.7 million postpaid customers in Q2, achieving its best quarterly performance, with stock rising by 5.20% [3] - Nokia's Q2 results fell short of expectations, with projected operating profit for the year revised down to between €1.6 billion and €2.1 billion [3] - ServiceNow reported Q2 profit of $385 million and revenue growth of approximately 23% to $3.22 billion, leading to a stock increase of 7.17% [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 under the Securities Exchange Act of 1934 Report on Form 6-K dated July 24, 2025 (Commission File No. 1-13202) Nokia Corporation Karakaari 7 FI-02610 Espoo Finland (Translation of the registrant's name into English and address of registrant's principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover o ...

Financial Data and Key Metrics Changes - Q2 2025 net sales were €4.55 billion, reflecting a 1% decline on a constant currency and portfolio basis [17] - Gross margin remained stable at 44.7%, while operating margin declined to 6.6% due to negative currency impacts and tariffs [18] - Free cash flow generated in the quarter was €88 million, with a net cash position of €2.9 billion at the end of the quarter [23] Business Line Data and Key Metrics Changes - Network infrastructure grew by 8%, with fixed networks up 17%, optical networks up 6%, and IP networks up 3% [18][19] - Mobile networks saw a 13% decline, primarily due to accelerated revenue recognition from the previous year [20] - Cloud and network services net sales increased by 14%, driven by growth in North America and Asia Pacific [21] - Nokia Technologies net sales increased by 3% on a constant currency basis, maintaining a run rate of approximately €1.4 billion [22] Market Data and Key Metrics Changes - Hyperscalers accounted for 5% of net sales in Q2, with strong demand driving order intake [11] - North America experienced a decline in mobile networks but saw double-digit growth in network infrastructure and cloud services [22] - APAC region showed flat sales in India due to a pause in mobile network investments, while growth was noted in fixed networks [22] Company Strategy and Development Direction - The company is focusing on unifying corporate functions to improve productivity and customer value [6][7] - Investments are being made in optical networking and AI infrastructure to capitalize on market transitions [5][10] - The company plans to discuss its full value creation strategy at the Capital Markets Day on November 19 [7][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities in connectivity, particularly in the AI super cycle [5] - The demand environment remains consistent, with no major impacts from geopolitical uncertainties [10] - Full-year expectations include strong growth in network infrastructure and stable net sales in mobile networks, with operating profit guidance revised down due to currency and tariff impacts [14][15] Other Important Information - The company is experiencing a €230 million headwind to operating profit due to currency fluctuations [15] - The tariff situation is expected to impact operating profit by €50 million to €80 million for the full year [15][18] Q&A Session All Questions and Answers Question: What is required to win large hyperscaler deals? - Management emphasized the importance of customer relationships and understanding customer needs to increase sales to hyperscalers [34] Question: Will the fiber build programs from U.S. Telcos accelerate into 2026? - Management expressed optimism about growth opportunities in fiber builds due to recent legislative support and customer demand [36] Question: Can you discuss the guidance revision? - Management explained that uncertainties have increased due to currency shifts and tariff impacts, leading to a prudent adjustment of the guidance range [44][46] Question: Can you provide insights on network infrastructure performance in Q2? - Management noted that supply chain constraints affected growth, but they expect strong performance in the second half driven by hyperscale and AI data center customers [50][52] Question: What is the outlook for the optical business? - Management acknowledged that while there is growth, they are still catching up in market share and need to continue product development to compete effectively [86]

Financial Data and Key Metrics Changes - Q2 2025 net sales were €4,550,000,000, reflecting a 1% decline on a constant currency and portfolio basis [15] - Gross margin remained stable at 44.7% compared to the previous year [15] - Operating margin decreased to 6.6% due to negative currency impacts and tariffs, which were expected to affect operating profit by €50,000,000 to €80,000,000 for the full year [16][13] - Free cash flow for the quarter was €88,000,000, contributing to a net cash position of €2,900,000,000 [21] Business Line Data and Key Metrics Changes - Network infrastructure experienced 8% growth, with fixed networks growing 17%, optical networks growing 6%, and IP networks growing 3% [16] - Mobile networks saw a 13% decline in net sales, primarily due to accelerated revenue recognition from a contract settlement in the previous year [18] - Cloud and network services net sales grew by 14%, driven by strong performance in core networks [19] - Nokia Technologies net sales increased by 3% on a constant currency basis, maintaining a run rate of approximately €1,400,000,000 [20] Market Data and Key Metrics Changes - Hyperscalers accounted for 5% of net sales in Q2, with strong demand driving order intake [9] - North America saw a decline in mobile networks but double-digit growth in network infrastructure and cloud services [20] - APAC region experienced flat sales in India due to a pause in mobile network investments, offset by growth in fixed networks [20] - Europe showed growth across all business lines, indicating a broad-based recovery [41] Company Strategy and Development Direction - The company is focusing on unifying corporate functions to improve productivity and customer value [5] - Investments are being made in optical networking and AI infrastructure to capitalize on market transitions [6][9] - The company plans to discuss its full value creation strategy at the Capital Markets Day on November 19 [6] - There is an emphasis on building closer relationships with hyperscalers and enhancing product offerings to meet their needs [32][36] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the demand environment, with no major impacts from geopolitical uncertainties [8] - The company expects strong growth in network infrastructure and cloud services, with stable net sales in mobile networks for the full year [8] - Currency fluctuations and tariffs are significant headwinds, prompting a revision of the operating profit outlook for 2025 [12][13] - The company aims for a free cash flow conversion of 50% to 80% of comparable operating profit for the year [14] Other Important Information - The company experienced a non-cash negative impact of $50,000,000 from venture funds, including a €60,000,000 negative impact from currency [6] - The integration of Infinera is progressing well, with a strong book-to-bill ratio indicating commercial momentum [7] - The company is actively participating in EU programs to build AI gigafactories, reflecting its commitment to innovation [10] Q&A Session Summary Question: What is required to win large hyperscaler deals? - Management emphasized the importance of customer relationships and understanding customer needs to increase sales to hyperscalers [30][32] Question: Will the fiber build programs from U.S. Telcos accelerate into 2026? - Management expressed optimism about growth opportunities in fiber builds, particularly in the U.S. and Europe [35] Question: Clarification on guidance revision and uncertainties? - Management explained that the guidance was lowered due to currency shifts and tariff impacts, while underlying operations remain stable [43][45] Question: Insights on network infrastructure performance in Q2? - Management noted that supply chain constraints affected growth, but a strong book-to-bill ratio indicates future potential [50][52] Question: Any changes in pricing dynamics in mobile networks? - Management reported no abnormal pricing changes but acknowledged regional market dynamics affecting competition [96][98]

Financial Performance - Nokia's Q2 2025 net sales experienced a 1% year-over-year decrease on a constant currency and portfolio basis[18] - The Q2 2025 operating margin was 6.6%, a decrease of 290 basis points year-over-year[18] - Free cash flow for Q2 2025 was EUR 0.1 billion[18] Business Segment Performance - Network Infrastructure net sales increased by 8% year-over-year in Q2 2025, reaching EUR 1.904 billion[25, 26] - Mobile Networks net sales decreased by 13% year-over-year in Q2 2025, totaling EUR 1.732 billion[32, 33] - Cloud and Network Services net sales grew by 14% year-over-year in Q2 2025, reaching EUR 557 million[38, 42] - Nokia Technologies net sales increased by 3% year-over-year in Q2 2025, reaching EUR 357 million[45] Outlook and Guidance - The comparable operating profit outlook for full year 2025 has been lowered to EUR 1.6 billion to EUR 2.1 billion, due to currency and tariff headwinds[11, 13] - Free cash flow conversion is expected to be 50% to 80% of comparable operating profit for full year 2025[11, 13] Regional Performance - Americas experienced a 22% decrease, APAC a 3% decrease, and EMEA a 17% decrease[49]

Core Viewpoint - Nokia's second-quarter performance was negatively impacted by tariffs and a weakening dollar, leading to a revenue increase of only 2% to €4.55 billion, which fell short of market expectations [1] Group 1: Financial Performance - Adjusted operating profit for the second quarter was €301 million (approximately $354 million), a 29% decline from €423 million in the same period last year, significantly below the Bloomberg analyst average expectation of €399 million [1] - Nokia has lowered its full-year operating profit guidance to between €1.6 billion and €2.1 billion, down from a previous high of €2.4 billion [1] Group 2: Market Conditions - The ongoing trade war initiated by the Trump administration has disrupted global supply chains, adversely affecting various industries, including Nokia [1] - Operators are hesitant to invest in expensive network upgrades, which has intensified competition between Nokia and its rival Ericsson [1][2] Group 3: Management Response - CEO Pekka Lundmark emphasized the need for continuous improvement in operations to enhance speed, efficiency, and focus on core business value creation [2] - The company is working on integrating corporate functions, streamlining workflows, and fostering a more cohesive corporate culture to leverage operational efficiencies [2] Group 4: Stock Performance - Following the downgrade of its earnings guidance, Nokia's stock experienced a significant drop in the Helsinki stock market, with a year-to-date decline of 12% [3]