Core Insights - Nokia Corporation reported stronger-than-expected third-quarter 2025 results, with both revenue and net income exceeding the Zacks Consensus Estimate. The growth was primarily driven by the Network Infrastructure segment, particularly in fixed and optical networks, along with improvements in Nokia Technologies and Cloud and Network services [1] Financial Performance - Nokia's net income from continuing operations was €80 million ($93.5 million), or €0.01 per share, down from €145 million or €0.03 per share in the same quarter last year. Increased operating and income tax expenses negatively impacted profits [2] - Comparable profit was €324 million ($378 million), or €0.06 per share, slightly down from €358 million or €0.06 in the previous year, marginally beating the Zacks Consensus Estimate of 6 cents [3] - Quarterly net sales reached €4.83 billion ($5.65 billion), a 12% increase from €4.32 billion in the year-ago quarter, surpassing the Zacks Consensus Estimate by $5.38 billion [4] Segment Performance - Net sales from Network Infrastructure totaled €1.95 billion ($2.28 billion), up from €1.52 billion in the year-ago quarter, beating the revenue estimate of €1.77 billion. IP Networks recorded 4% growth year over year, driven by demand from AI and cloud customers, while Optical Networks improved by 19% [5] - Mobile Networks generated revenues of €1.84 billion ($2.153 billion), down 1% year over year, but still beating the estimate of €1.74 billion, with growth supported by the Middle East, Africa, and APAC regions [6] - Cloud and Network Services reported net sales of €645 million ($754 million), an 8% increase year over year, although it missed the estimate of €700.9 million [7] - Nokia Technologies contributed €391 million ($457 million), up 14% year over year, benefiting from trends in automotive, consumer electronics, multimedia, and IoT [8] Regional Performance - EMEA region net sales increased to €1.936 billion from €1.832 billion in the previous year, with growth in all segments except Mobile Networks [9] - APAC region revenues rose to €1.17 billion, a 15% increase year over year, primarily due to Network Infrastructure growth [9] - Americas saw a 10% growth to €1.71 billion, driven by strong performance in Network Infrastructure and Cloud and Network services [9] Other Financial Metrics - The comparable gross margin was 44.2%, down from 45.7% in the previous year, with a comparable operating profit decrease of 10% year over year to €435 million ($508.4 million) [12] - Nokia generated €597 million ($697 million) in net cash from operating activities, down from €728 million in the prior-year quarter, and had €4.89 billion ($5.74 billion) in cash and cash equivalents as of September 30, 2025 [13] Outlook - For 2025, Nokia expects a comparable operating profit in the range of €1.7 billion to €2.2 billion, with free cash flow estimated at 50-80% of that range and capital expenditure projected at €650 million [14]

Group 1 - European stock markets rose as investors sought signals amid a flurry of corporate earnings reports [1] - The Stoxx Europe 600 index increased by 0.4%, with the energy sector outperforming due to a 5.7% surge in Brent crude oil prices following U.S. sanctions on Russian oil companies [1] - Shell's stock price rose by 2.9% as a result of the increased oil prices [1] Group 2 - Notable stocks such as Volvo Cars, Kering Group, Rentokil Initial Plc, Metso Oyj, and Nokia Oyj performed well on Thursday, despite being heavily shorted earlier this year [1] - Investors adjusted their underweight positions following the release of corporate earnings, similar to trends observed in the U.S. market over the past few months [1] - Nokia's stock price soared to a three-year high, driven by demand for artificial intelligence and cloud services [1] - Volvo Cars' stock surged by 38% due to profits exceeding expectations [1]

Core Insights - Chris Lau is an experienced investor and economist with 30 years in life science, technology, and dividend-growth income stocks [1] - He operates the DIY Value Investing group, focusing on undervalued stocks with catalysts for upside and dividend-income recommendations [1] Group 1: Flagship Products - Top DIY Picks feature undervalued stocks with upcoming catalysts that the market does not expect [2] - Dividend-income Champs include stocks with a long history of dividend growth, along with a printable calendar and quantitative scores [2] - DIY Community Picks are aimed at speculative allocations with positive momentum [2]

Core Insights - Nokia Corporation reported earnings per share of $0.069, exceeding the estimated $0.06, and revenue of approximately $5.61 billion, surpassing the estimated $4.64 billion, indicating strong market performance [1][6] - The company's financial success is attributed to increased sales of network infrastructure equipment, particularly driven by demand from AI and data-center customers in North America [2][3] Financial Performance - The third-quarter profit exceeded expectations, fueled by strong demand in the optical and cloud sectors, especially from AI-driven data centers [3] - The recent acquisition of Infinera has enhanced Nokia's capabilities in the optical networking space, contributing positively to its financial results [3] Financial Metrics - Nokia's price-to-earnings (P/E) ratio is approximately 25.45, indicating favorable market valuation of its earnings [4][6] - The price-to-sales ratio is about 1.34, reflecting investor willingness to pay for each dollar of sales, while the enterprise value to sales ratio is around 1.30 [4] - The enterprise value to operating cash flow ratio is approximately 12.32, indicating efficient cash flow generation [5] - The company maintains a low debt-to-equity ratio of about 0.21, suggesting a conservative approach to leveraging debt [5] - Nokia's current ratio is approximately 1.46, demonstrating strong liquidity to meet short-term liabilities [5]

Core Viewpoint - Nokia's stock surged by 10% to $6.105 following better-than-expected Q3 earnings driven by growth in network infrastructure and optical networks [1] Financial Performance - Nokia's Q3 net sales increased by 12% year-over-year to €4.828 billion, surpassing analyst expectations of €4.64 billion [1] - Adjusted operating profit decreased by 10% year-over-year to €435 million, but exceeded analyst expectations of €324 million [1] - Adjusted earnings per share remained flat at €0.06 compared to the same period last year [1] Business Drivers - The growth in performance was primarily driven by demand from artificial intelligence and cloud services customers [1] - After a period of weak 5G equipment sales, Nokia diversified its business by expanding into new areas such as AI and defense [1] Updated Guidance - The company updated its full-year profit forecast to €1.7-2.2 billion, an upward revision from previous expectations [1]

Core Viewpoint - Nokia's stock surged by 10% to $6.105 following better-than-expected Q3 2025 earnings driven by growth in network infrastructure and optical networks [1] Financial Performance - Nokia's Q3 net sales increased by 12% year-on-year to €4.828 billion, surpassing analyst expectations of €4.64 billion [1] - Adjusted operating profit decreased by 10% year-on-year to €435 million, but exceeded analyst average expectations of €324 million [1] - Adjusted earnings per share remained flat at €0.06 compared to the same period last year [1] Business Drivers - The growth in performance was primarily driven by demand from artificial intelligence and cloud service customers [1] - After a period of sluggish 5G equipment sales, Nokia diversified its business by expanding into new areas such as AI and defense [1] Future Outlook - The company updated its full-year profit forecast to €1.7-2.2 billion, an upward revision from previous expectations [1]

Market Overview - U.S. stock market opened mixed with Nasdaq up 0.05%, S&P 500 up 0.1%, and Dow Jones down 0.03% [1] Company Performance - Tesla shares fell 4.6% as Q3 results showed mixed performance, with adjusted net profit down 29% year-over-year, marking the third consecutive quarterly decline [1] - IBM shares dropped 6.8% due to slowing revenue growth in the hybrid cloud segment, which fell short of investor expectations [1] - Nokia shares rose 7.4% after Q3 results exceeded expectations, with net sales in the network infrastructure business increasing by 28% year-over-year [1]

Financial Performance - In Q3 2025, Nokia reported a 9% year-over-year growth in comparable net sales, reaching EUR 4.833 billion, with a reported growth of 12%[9]. - Nokia reported Q3 2025 net sales of EUR 4.828 billion, a 12% increase year-over-year compared to EUR 4.326 billion in Q3 2024[35]. - Reported net sales in Q3 2025 increased by 12% year-over-year, with comparable net sales up 9% on a constant currency basis, driven by 11% growth in Network Infrastructure[53][54]. - Total net sales for Q3 2025 reached EUR 4.828 billion, a 12% increase year-on-year, with significant growth in the Americas and APAC regions[86]. - Net sales to Communications Service Providers (CSP) increased by 7% year-on-year, while Enterprise net sales surged by 41%[89][91]. - Nokia's annual net sales run-rate for Technologies is approximately EUR 1.4 billion, with expectations of EUR 1.1 billion in operating profit from this segment[10]. - Nokia's annual net sales run-rate for Nokia Technologies remained approximately EUR 1.4 billion in Q3 2025[81]. - Nokia's net sales in the Americas for Q1-Q3 2025 were EUR 4,773 million, reflecting a 14% year-over-year increase[185]. Profitability Metrics - Comparable gross margin declined by 150 basis points year-over-year to 44.2%, while the comparable operating margin decreased by 220 basis points to 9.0%[9]. - Reported operating profit in Q3 2025 was EUR 239 million, representing 5.0% of net sales, down from 6.4% in Q3 2024[56]. - Comparable operating profit decreased by 10% to EUR 435 million, with a comparable operating margin of 9.0%, down from 11.2% in Q3 2024[57]. - Profit for the period was EUR 80 million in Q3 2025, down from EUR 175 million in Q3 2024, reflecting challenges in the market[132]. - Nokia's adjusted profit for the first nine months of 2025 was EUR 635 million, a significant decrease from EUR 1,109 million in the same period of 2024[108]. - Reported operating profit was EUR 345 million, or 2.5% of net sales, down from EUR 1,109 million or 8.4% in the first nine months of 2024[108]. Cash Flow and Financial Position - Free cash flow for Q3 2025 was EUR 0.4 billion, with a net cash balance of EUR 3.0 billion[9]. - Free cash flow for Q3 2025 was positive EUR 429 million, contributing to a net cash balance of EUR 3,001 million at the end of the quarter[64]. - Free cash flow was positive at EUR 1,238 million in the first nine months of 2025, despite a net cash decrease of EUR 1,853 million[114]. - Cash flows from operations amounted to EUR 691 million in Q3 2025, down 15.0% from EUR 813 million in Q3 2024[137]. - Net cash flows from operating activities for the first three quarters of 2025 totaled EUR 1,696 million, a decline of 25.7% compared to EUR 2,285 million in the same period of 2024[137]. - Cash and cash equivalents were EUR 4,892 million as of September 30, 2025, down from EUR 7,043 million in the previous year[134]. - The total financial liabilities as of September 30, 2025, are EUR 7.480 billion, with long-term interest-bearing liabilities at EUR 2.403 billion[198]. Segment Performance - The Network Infrastructure segment achieved a net sales growth of 11%, driven by a 19% increase in Optical Networks, primarily from AI & Cloud customers[8]. - Cloud and Network Services segment saw a 13% net sales growth, with strong operator investments in 5G Core[10]. - Optical Networks experienced a 19% growth in net sales, driven by AI and Cloud customers, with order intake trends remaining strong[39]. - Mobile Networks reported a 4% growth, with a stabilization in the market and a new agreement with VodafoneThree[40]. - Cloud and Network Services achieved a 13% increase in net sales, with a strong performance in 5G Core offerings[40]. - Mobile Networks net sales decreased by 1% on a reported basis but increased by 4% on a constant currency basis, primarily driven by growth in APAC[74]. Strategic Initiatives - Nokia plans to open a second semiconductor fabrication facility in San Jose to support growth in optical components[8]. - The company announced a strategic partnership with Nscale to become a preferred networking equipment vendor for their data center buildout[8]. - The company is on track to achieve its full-year outlook for 2025, with a focus on leveraging its portfolio for growth and operating leverage[44]. - The company initiated a strategic review of its venture fund investment activities, leading to a reclassification of related financial results starting Q3 2025[143]. - Nokia completed the acquisition of Infinera Corporation on February 28, 2025, enhancing its scale and profitability in optical networks[116]. - The acquisition of Infinera resulted in a total purchase consideration of EUR 2,496 million, which includes EUR 1,066 million in cash and EUR 785 million in convertible notes[173]. Market Challenges - The company faced competitive intensity and supply chain disturbances, impacting its ability to monetize network investments[128]. - Nokia is navigating macroeconomic uncertainties, including inflation and currency fluctuations, which may affect future performance[128]. - The company plans to scale down passive venture fund investments, changing their presentation in financials to impact financial income and expenses instead of operating profit[42]. Research and Development - Research and development expenses increased to EUR 1,174 million in Q3 2025 from EUR 1,116 million in Q3 2024, indicating continued investment in innovation[130]. - Nokia's Managed Services business was moved to the Mobile Networks segment effective January 1, 2025, aligning it better with the company's strategic focus[158]. Shareholder Information - The Board resolved to distribute a dividend of EUR 0.03 per share, with the record date on 28 October 2025[51]. - The Annual General Meeting on April 29, 2025, approved the financial statements and authorized the Board to resolve on a maximum dividend distribution of EUR 0.14 per share[122].

Core Insights - The company reported a strong growth of 9% on a constant currency basis, particularly in the network infrastructure business driven by optical networks and mobile infrastructure [1] - There is a significant focus on AI and data centers, with investments aimed at capturing opportunities in these areas [2][3] - Demand for AI and data center activities is robust and continues to accelerate, indicating a long-term growth trend rather than a temporary spike [6][8] Company Performance - The company experienced strong order growth in its optical networks business, contributing to overall positive performance [1] - Profit comparisons year-over-year are affected by a reversal from the previous year, but underlying performance remains flat when adjusted for this [1] - The company is actively innovating and shipping competitive products, such as the 800 gig ZRZR Plus pluggable, which is expected to enhance its market position [4][5] Market Trends - The demand for optical networks is growing across various sectors, including long-haul transport and metro networks [4] - Emerging demand in pluggable technology is seen as an exciting opportunity for the company [4] - The long-term potential of AI is viewed as a super cycle, with various applications still in early stages of penetration, suggesting sustained growth in the future [9][12] Strategic Focus - The company is directing investments towards AI and data centers to capitalize on the increasing demand in these sectors [2][3] - There is a belief that the current wave of spending from hyperscalers will not lead to a slowdown in the market, reinforcing confidence in long-term growth prospects [8][10] - The company is expanding its capabilities in fixed access and fiber technology to support both enterprise and residential customers [12][13]

Core Insights - Shares of Nokia increased approximately 8% in premarket trading following the announcement of third quarter adjusted profit that exceeded analyst expectations, driven by strong demand for AI and cloud services which positively impacted Optical Networks sales [5] Financial Performance - Nokia's third quarter adjusted operating profit decreased by 10% year-over-year, amounting to €435 million [5]