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].