Zacks Investment Research·Sep 2, 2026
Can Nokia's Saudi AI Network Automation Expansion Drive Growth?NOK opens new R&D center in Saudi Arabia to advance AI-powered network automation, AI-native 6G research and exportable software solutions.
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Nokia's revenue stabilization around 2-6% growth, with Q2 2026 at 5.9%, is offset by persistent margin compression as gross margins fell from 49.7% in Q1 2024 to 44.6% in Q2 2026. The company's heavy R&D intensity (29% of revenue) and operating losses (-$50M i...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth stabilized at 5.9% in Q2 2026, but gross margin compression from 49.7% to 44.6% and an operating loss of -$50M highlight strained profitability.
Nokia is transitioning from a traditional 5G vendor to a key player in AI-native networks, edge AI, 6G, and telecom compute, leveraging AI/data center demand to offset weaker 5G spending.
Nokia has a buy consensus from 52 analysts, with a predicted stock price target of $15.28 by 2026, indicating significant upside potential.
Nokia is well-positioned to capitalize on emerging technologies like edge AI and data center networking, which could drive future growth beyond traditional telecom equipment.
Trailing total returns as of 9/9/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 23, 2026 | $0.08+14.3% vs $0.07 | $5.5B-1.7% vs $5.6B |
Q2 2026 Apr 23, 2026 | $0.06+0.0% vs $0.06 | $5.3B-1.2% vs $5.3B |
Q1 2026 Jan 29, 2026 | $0.21+23.5% vs $0.17 | $7.3B+2.6% vs $7.1B |
Q4 2025 Oct 23, 2025 | $0.07+16.7% vs $0.06 | $5.7B-7.4% vs $6.1B |
NOK opens new R&D center in Saudi Arabia to advance AI-powered network automation, AI-native 6G research and exportable software solutions.
Finnish telecom equipment maker Nokia Oyj is set to rejoin the bluechip Euro STOXX 50 index a year after being dropped, while Volkswagen will be removed, index provider STOXX said in its annual review on Tuesday.
NOK's 135.8% surge reflects booming AI and cloud demand, but heavy investment, competition and financial pressure create key risks.
NOK's diversified connectivity portfolio and growing AI & Cloud business strengthen its growth prospects despite telecom and competitive pressures.
Benchmark NOK against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Nokia Oyj (NOK)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $10.66 | $61.85B | 83.35 | 3.48% | 3.27% | 3.12% | 1.5% | |
| $10.07 | $33.15B | 12.04 | -14.22% | 10.7% | 23.34% | — | |
| $109.17 | $430.29B | 32.78 | 11.77% | 20.95% | 27.39% | — | |
| $56.05 | $74.21B | -1256.61 | 14.06% | 6.57% | 10.85% | — | |
| $341.29 | $48.31B | 401.52 | 18.79% | 10.87% | 22.82% | — | |
| $38.75 | $9.56B | 258.33 | 8.39% | -2% | -3.16% | — |
Nokia Oyj (NOK) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Nokia Oyj (NOK) stock FAQ — growth, dividends, profitability & financials explained
Nokia Oyj (NOK) reported $20.27B in revenue for fiscal year 2025. This represents a 199% increase from $6.79B in 1996.
Nokia Oyj (NOK) grew revenue by 3.5% over the past year. Growth has been modest.
Yes, Nokia Oyj (NOK) is profitable, generating $708.0M in net income for fiscal year 2025 (3.3% net margin).
Yes, Nokia Oyj (NOK) pays a dividend with a yield of 1.50%. This makes it attractive for income-focused investors.
Nokia Oyj (NOK) has a return on equity (ROE) of 3.1%. This is below average, suggesting room for improvement.
Nokia Oyj (NOK) generated $536.0M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
