Operating margins have experienced severe compression, falling from 9.6% in 2023Q4 to a thin 1.4% in 2026Q1, reflecting ongoing difficulties in balancing R&D investment with competitive hardware pricing.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 20B | 19.89B | 19.22B | 21.14B | 23.76B | 22.2B | 21.85B | 23.32B | 22.56B | 23.15B | 23.64B | 12.56B | 11.76B | 11.79B | 15.4B | 15.97B | 42.45B | 40.98B | 50.71B | 51.06B | 41.12B | 34.17B | 29.35B | 29.4B | 30.04B | 31.25B | 30.46B | 19.83B | 13.34B | 8.82B | 6.79B |
| Revenue Growth % | 4.33% | 3.48% | -9.07% | -11.04% | 7.02% | 1.6% | -6.27% | 3.33% | -2.52% | -2.09% | 88.22% | 6.78% | -0.28% | -23.41% | -3.56% | -62.38% | 3.57% | -19.18% | -0.68% | 24.17% | 20.36% | 16.41% | -0.18% | -2.13% | -3.85% | 2.58% | 53.61% | 48.65% | 51.26% | 29.96% | 3.58% |
| Cost of Goods Sold | 11.17B | 11.23B | 10.36B | 12.59B | 13.66B | 13.37B | 13.66B | 15.05B | 14.25B | 14.01B | 15.12B | 6.96B | 6.77B | 7.16B | 9.84B | 10.41B | 29.46B | 27.72B | 33.34B | 33.78B | 27.74B | 22.19B | 18.17B | 17.21B | 18.29B | 19.82B | 19.12B | 12.26B | 8.31B | 5.24B | 4.84B |
| COGS % of Revenue | - | 56.46% | 53.88% | 59.57% | 57.49% | 60.21% | 62.51% | 64.55% | 63.16% | 60.52% | 63.94% | 55.44% | 57.59% | 60.68% | 63.9% | 65.18% | 69.4% | 67.64% | 65.74% | 66.16% | 67.47% | 64.95% | 61.89% | 58.52% | 60.89% | 63.44% | 62.79% | 61.84% | 62.28% | 59.38% | 71.29% |
| Gross Profit | 8.82B | 8.66B | 8.86B | 8.55B | 10.1B | 8.83B | 8.19B | 8.26B | 8.31B | 9.14B | 8.52B | 5.6B | 4.99B | 4.64B | 5.56B | 5.56B | 12.99B | 13.26B | 17.37B | 17.28B | 13.38B | 11.97B | 11.18B | 12.2B | 11.75B | 11.42B | 11.34B | 7.57B | 5.03B | 3.58B | 1.95B |
| Gross Margin % | 44.12% | 43.54% | 46.12% | 40.43% | 42.51% | 39.79% | 37.49% | 35.45% | 36.84% | 39.48% | 36.06% | 44.56% | 42.41% | 39.32% | 36.1% | 34.82% | 30.6% | 32.36% | 34.26% | 33.84% | 32.53% | 35.05% | 38.11% | 41.48% | 39.11% | 36.56% | 37.21% | 38.16% | 37.72% | 40.62% | 28.71% |
| Gross Profit Growth % | - | -2.31% | 3.72% | -15.39% | 14.34% | 7.82% | -0.86% | -0.58% | -9.05% | 7.21% | 52.3% | 12.21% | 7.55% | -16.57% | -0.02% | -57.2% | -2.07% | -23.65% | 0.56% | 29.14% | 11.74% | 7.06% | -8.31% | 3.81% | 2.84% | 0.79% | 49.78% | 50.38% | 40.46% | 83.88% | -3.06% |
| Operating Expenses | 8B | 7.88B | 7.27B | 7.08B | 7.66B | 6.68B | 7.31B | 7.78B | 8.37B | 9.12B | 9.62B | 3.9B | 3.57B | 3.97B | 6.38B | 6.95B | 10.92B | 12.07B | 12.41B | 9.29B | 7.89B | 7.34B | 6.86B | 7.19B | 6.97B | 8.06B | 5.54B | 3.01B | 2.54B | 2.17B | 1.21B |
| OpEx % of Revenue | - | 39.6% | 37.85% | 33.48% | 32.23% | 30.07% | 33.44% | 33.36% | 37.1% | 39.41% | 40.71% | 31.05% | 30.39% | 33.62% | 41.43% | 43.51% | 25.73% | 29.44% | 24.47% | 18.2% | 19.19% | 21.48% | 23.38% | 24.47% | 23.18% | 25.78% | 18.2% | 15.17% | 19.05% | 24.56% | 17.87% |
| Selling, General & Admin | 3.02B | 3.07B | 2.87B | 2.86B | 2.96B | 2.79B | 2.9B | 3.22B | 3.55B | 3.62B | 3.77B | 1.77B | 1.56B | 1.48B | 2.06B | 2.34B | 4.89B | 5.08B | 5.66B | 5.54B | 3.98B | 3.57B | 3.17B | 3.36B | 3.24B | 3.45B | 2.81B | 1.82B | 1.37B | 939.09M | 605.82M |
| SG&A % of Revenue | - | 15.45% | 14.94% | 13.54% | 12.44% | 12.58% | 13.26% | 13.81% | 15.73% | 15.62% | 15.93% | 14.11% | 13.25% | 12.57% | 13.39% | 14.67% | 11.53% | 12.39% | 11.17% | 10.86% | 9.68% | 10.44% | 10.81% | 11.42% | 10.79% | 11.04% | 9.23% | 9.16% | 10.27% | 10.65% | 8.93% |
| Research & Development | 4.95B | 4.86B | 4.51B | 4.28B | 4.5B | 4.21B | 4.09B | 4.53B | 4.78B | 4.92B | 5B | 2.08B | 1.9B | 1.97B | 3.08B | 3.33B | 5.84B | 5.91B | 5.97B | 5.64B | 3.9B | 3.82B | 3.77B | 3.75B | 3.06B | 2.99B | 2.59B | 1.76B | 1.15B | 764.54M | 606.62M |
| R&D % of Revenue | - | 24.41% | 23.48% | 20.23% | 18.95% | 18.98% | 18.7% | 19.44% | 21.17% | 21.24% | 21.14% | 16.56% | 16.19% | 16.7% | 20.01% | 20.88% | 13.77% | 14.42% | 11.77% | 11.04% | 9.48% | 11.19% | 12.86% | 12.77% | 10.17% | 9.57% | 8.51% | 8.88% | 8.63% | 8.67% | 8.94% |
| Other Operating Expenses | 0 | -51M | -110M | -64M | 198M | -330M | 323M | 28M | 45M | 592M | 860M | 48M | 111M | 513M | 1.24B | 1.27B | 181M | 1.08B | 775M | -1.89B | 13.64M | -51.5M | -84.83M | 84.17M | 668.03M | 1.62B | 139.48M | -568.45M | 20.46M | 462.73M | 0 |
| Operating Income | 819M | 782M | 1.59B | 1.47B | 2.44B | 2.16B | 885M | 485M | -59M | 16M | -1.1B | 1.7B | 1.41B | 672M | -821M | -1.39B | 2.07B | 1.2B | 4.97B | 7.99B | 5.49B | 4.64B | 4.32B | 5B | 4.78B | 3.37B | 5.79B | 4.56B | 2.49B | 1.42B | 735.98M |
| Operating Margin % | 4.1% | 3.93% | 8.27% | 6.95% | 10.29% | 9.72% | 4.05% | 2.08% | -0.26% | 0.07% | -4.65% | 13.51% | 12.02% | 5.7% | -5.33% | -8.69% | 4.88% | 2.92% | 9.79% | 15.64% | 13.35% | 13.57% | 14.73% | 17.01% | 15.92% | 10.78% | 19.02% | 22.99% | 18.68% | 16.06% | 10.85% |
| Operating Income Growth % | - | -50.82% | 8.16% | -39.85% | 13.25% | 143.84% | 82.47% | 922.03% | -468.75% | 101.45% | -164.82% | 20.01% | 110.42% | 181.85% | 40.85% | -167.05% | 72.93% | -75.9% | -37.81% | 45.5% | 18.4% | 7.23% | -13.59% | 4.57% | 42.02% | -41.85% | 27.04% | 83% | 75.91% | 92.45% | -17.51% |
| EBITDA | 1.88B | 1.9B | 2.6B | 2.56B | 3.58B | 3.25B | 2.02B | 2.15B | 1.4B | 1.61B | 494M | 2.02B | 1.71B | 1.4B | 505M | 174M | 3.84B | 2.98B | 6.58B | 9.19B | 6.2B | 5.35B | 5.19B | 6.14B | 6.1B | 4.19B | 6.71B | 5.23B | 3B | 1.88B | 1.12B |
| EBITDA Margin % | 9.42% | 9.56% | 13.55% | 12.1% | 15.08% | 14.65% | 9.23% | 9.2% | 6.19% | 6.94% | 2.09% | 16.06% | 14.55% | 11.87% | 3.28% | 1.09% | 9.05% | 7.27% | 12.98% | 18% | 15.08% | 15.65% | 17.68% | 20.88% | 20.29% | 13.41% | 22.02% | 26.36% | 22.48% | 21.31% | 16.53% |
| EBITDA Growth % | -12.58% | -27% | 1.84% | -28.66% | 10.18% | 61.28% | -5.97% | 53.65% | -13.13% | 225.3% | -75.51% | 17.88% | 22.21% | 177.23% | 190.23% | -95.47% | 28.85% | -54.72% | -28.38% | 48.24% | 15.96% | 3.02% | -15.45% | 0.7% | 45.5% | -37.53% | 28.33% | 74.28% | 59.59% | 67.53% | 25.71% |
| D&A (Non-Cash Add-back) | 1.06B | 1.12B | 1.01B | 1.09B | 1.14B | 1.09B | 1.13B | 1.66B | 1.46B | 1.59B | 1.59B | 320M | 297M | 728M | 1.33B | 1.56B | 1.77B | 1.78B | 1.62B | 1.21B | 712.23M | 711.75M | 867.51M | 1.14B | 1.31B | 821.58M | 914.61M | 666.83M | 507.33M | 462.73M | 385.67M |
| EBIT | 1.17B | 1.13B | 2.42B | 1.82B | 2.39B | 2.13B | 987M | 468M | -78M | -1M | -1.05B | 1.69B | 1.39B | 722M | -912M | -1.27B | 2.06B | 1.23B | 4.97B | 8.27B | 5.49B | 4.64B | 4.32B | 5B | 4.78B | 3.37B | 5.79B | 4.56B | 2.49B | 1.42B | 735.18M |
| Net Interest Income | 68.72M | 79.72M | -35.7M | -65.95M | -183.92M | -223.39M | -176M | -185.8M | -214M | -341M | -252.21M | -94M | -319M | -161M | -105M | -98M | -192M | -265M | -2M | 239M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 68.72M | 79.72M | 324.51M | 237.85M | 86.18M | 57.92M | 68M | 81.71M | 76M | 60M | 92.92M | 37M | 73M | 135M | 130M | 199M | 138M | 0 | 0 | 239M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 360.2M | 303.79M | 270.1M | 281.31M | 244M | 267.5M | 282M | 509M | 345.13M | 139M | 391M | 323M | 268M | 102M | 285M | 265M | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 312M | 133M | 501M | -1M | -275M | -232M | -142M | -329M | -301M | -526M | -269M | -157M | -415M | -273M | -358M | -154M | -284M | -235M | 4M | 283M | 234.88M | 331.81M | 378.43M | 279.5M | 85.77M | 29.22M | -54.3M | -782.11M | -71.62M | -30M | 10.45M |
| Pretax Income | 1.13B | 915M | 2.09B | 1.47B | 2.17B | 1.93B | 743M | 156M | -360M | -510M | -1.37B | 1.54B | 999M | 399M | -1.18B | -1.54B | 1.79B | 962M | 4.97B | 8.27B | 5.72B | 4.97B | 4.7B | 5.28B | 4.87B | 3.4B | 5.74B | 3.78B | 2.42B | 1.39B | 746.42M |
| Pretax Margin % | 5.66% | 4.6% | 10.88% | 6.95% | 9.13% | 8.67% | 3.4% | 0.67% | -1.6% | -2.2% | -5.79% | 12.26% | 8.49% | 3.38% | -7.66% | -9.66% | 4.21% | 2.35% | 9.8% | 16.19% | 13.92% | 14.54% | 16.02% | 17.96% | 16.21% | 10.87% | 18.84% | 19.05% | 18.14% | 15.72% | 11% |
| Income Tax | 347M | 277M | 380M | 820M | -2.03B | 272M | 3.26B | 138M | 189M | 927M | -457M | 346M | -1.72B | 271M | 304M | 73M | 443M | 702M | 1.08B | 1.52B | 1.36B | 1.28B | 1.45B | 1.7B | 1.49B | 1.19B | 1.79B | 1.19B | 737.55M | 380.91M | 147.84M |
| Effective Tax Rate % | 30.68% | 30.27% | 18.17% | 55.82% | -93.73% | 14.12% | 438.22% | 88.46% | -52.5% | -181.76% | 33.38% | 22.47% | -172.07% | 67.92% | -25.78% | -4.73% | 24.8% | 72.97% | 21.75% | 18.41% | 23.71% | 25.77% | 30.74% | 32.11% | 30.51% | 35.13% | 31.17% | 31.57% | 30.48% | 27.48% | 19.81% |
| Net Income | 796M | 651M | 1.28B | 665M | 4.25B | 1.62B | -2.52B | 7M | -335M | -1.49B | -766M | 2.47B | 3.46B | -615M | -3.1B | -1.16B | 1.85B | 891M | 3.99B | 7.21B | 4.31B | 3.61B | 3.19B | 3.59B | 3.38B | 2.2B | 3.95B | 2.58B | 1.75B | 1.05B | 598.59M |
| Net Margin % | 3.98% | 3.27% | 6.64% | 3.15% | 17.89% | 7.31% | -11.55% | 0.03% | -1.48% | -6.45% | -3.24% | 19.63% | 29.43% | -5.21% | -20.16% | -7.28% | 4.36% | 2.17% | 7.86% | 14.11% | 10.47% | 10.58% | 10.87% | 12.2% | 11.26% | 7.05% | 12.96% | 13.04% | 13.13% | 11.9% | 8.82% |
| Net Income Growth % | 1.53% | -49.02% | 92.03% | -84.35% | 161.86% | 164.33% | -36142.86% | 102.09% | 77.58% | -95.04% | -131.06% | -28.77% | 662.93% | 80.19% | -166.98% | -162.86% | 107.63% | -77.66% | -44.65% | 67.33% | 19.16% | 13.29% | -11.05% | 5.96% | 53.54% | -44.19% | 52.78% | 47.59% | 66.94% | 75.26% | 50.49% |
| Net Income (Continuing) | 784M | 638M | 1.71B | 649M | 4.2B | 1.65B | -2.51B | 18M | -549M | -1.44B | -912M | 1.19B | 2.72B | 128M | -1.48B | -1.61B | 1.34B | 260M | 3.89B | 6.75B | 4.31B | 3.61B | 3.19B | 3.59B | 3.38B | 2.2B | 3.95B | 2.58B | 1.68B | 1.01B | 598.59M |
| Discontinued Operations | 3M | 22M | -427M | 30M | 57M | -9M | -3M | -7M | 214M | -21M | -15M | 1.27B | 758M | -867M | -2.3B | 128M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 43.64M | 0 |
| Minority Interest | 92M | 90.96M | 90M | 91M | 93M | 102M | 97.88M | 85.31M | 82M | 80M | 881M | 21M | 58M | 193M | 1.39B | 2.04B | 1.85B | 1.66B | 2.31B | 2.57B | 91.68M | 205.17M | 168.19M | 163.57M | 173.44M | 196.68M | 177.81M | 122.24M | 63.1M | 32.73M | 4.82M |
| EPS (Diluted) | 0.14 | 0.11 | 0.23 | 0.12 | 0.75 | 0.29 | -0.45 | 0.00 | -0.06 | -0.26 | -0.13 | 0.62 | 0.84 | -0.17 | -0.84 | -0.31 | 0.36 | 0.24 | 1.06 | 1.84 | 1.05 | 0.83 | 0.70 | 0.75 | 0.71 | 0.46 | 0.82 | 0.14 | 0.19 | 0.03 | 0.12 |
| EPS Growth % | 4.82% | -52.17% | 91.67% | -84% | 158.62% | 164.44% | - | 105.26% | 76.62% | -100% | -120.97% | -26.19% | 594.12% | 79.76% | -170.97% | -186.11% | 50% | -77.36% | -42.39% | 75.24% | 26.51% | 18.57% | -6.67% | 5.63% | 54.35% | -43.9% | 485.71% | -26.32% | 627.97% | -78.25% | 44.75% |
| EPS (Basic) | - | 0.11 | 0.23 | 0.12 | 0.76 | 0.29 | -0.45 | 0.00 | -0.06 | -0.26 | -0.13 | 0.67 | 0.94 | -0.17 | -0.85 | -0.31 | 0.36 | 0.24 | 1.07 | 1.86 | 1.06 | 0.83 | 0.70 | 0.75 | 0.71 | 0.47 | 0.85 | 0.14 | 0.19 | 0.03 | 0.12 |
| Diluted Shares Outstanding | 5.72B | 5.5B | 5.53B | 5.59B | 5.67B | 5.68B | 5.61B | 5.63B | 5.59B | 5.65B | 5.74B | 3.95B | 4.13B | 3.71B | 3.71B | 3.71B | 3.71B | 3.72B | 3.78B | 3.93B | 4.09B | 4.37B | 4.6B | 4.76B | 4.79B | 4.79B | 4.79B | 1.9B | 938.64M | 4.01B | 4.79B |
| Basic Shares Outstanding | 5.59B | 5.42B | 5.46B | 5.55B | 5.61B | 5.63B | 5.61B | 5.6B | 5.54B | 5.65B | 5.73B | 3.67B | 3.7B | 3.71B | 3.67B | 3.71B | 3.71B | 3.71B | 3.74B | 3.89B | 4.06B | 4.37B | 4.59B | 4.76B | 4.75B | 4.7B | 4.67B | 1.84B | 910.67M | 4.01B | 4.79B |
| Dividend Payout Ratio | - | 111.1% | 56.62% | 91.88% | 8.31% | 0.55% | - | 8142.86% | - | - | - | 20.76% | 40.21% | - | - | - | 82.11% | 173.51% | 51.35% | 24.43% | 36.07% | 42.34% | 44.26% | 38.35% | 39.88% | 63.44% | 25.51% | 23.14% | 21.23% | 16.98% | 26.04% |
Cyclical Infrastructure Spending Volatility
As reported in recent financial filings, Nokia's revenue growth has exhibited significant volatility, fluctuating between a 24.2% contraction in 2024Q1 and a 11.6% expansion by 2025Q3, reflecting the inherent instability of global telecommunications capital expenditure cycles and the lumpy nature of large-scale infrastructure project deployments.
The inconsistent revenue trajectory suggests that Nokia remains heavily tethered to the timing of regional 5G rollouts rather than consistent organic growth. Investors should monitor whether the recent shift toward enterprise private wireless can eventually decouple the top line from the traditional, highly cyclical service provider hardware replacement cycle.
Based on the provided income statement data, Nokia's gross margin has struggled to maintain consistency, peaking at 49.7% in 2024Q1 before compressing to 44.2% in 2026Q1, which highlights the ongoing difficulty in balancing high-margin intellectual property licensing with lower-margin, competitive hardware infrastructure deployments.
The compression in gross margins appears to indicate that pricing power in the core mobile networks segment remains under pressure from global competitors. If the company cannot successfully pivot its revenue mix toward software-led services, the current margin profile may remain vulnerable to further competitive erosion in the infrastructure space.
According to the company's reported figures, operating margins have plummeted from 9.6% in 2023Q4 to a thin 1.4% in 2026Q1, demonstrating a lack of operational scalability as the firm continues to absorb significant R&D costs despite the recent fluctuations in quarterly revenue performance.
The inability to translate gross profit into meaningful operating income suggests that the firm's fixed-cost base, particularly in R&D, is currently too heavy relative to its current revenue scale. This lack of operating leverage warrants further investigation into whether management's restructuring efforts are effectively streamlining the cost structure or merely deferring necessary operational efficiencies.
As evidenced by the wide swings in net income, ranging from a $820 million profit in 2024Q4 to a $146 million loss in 2024Q2, Nokia's bottom line appears heavily influenced by non-operating items and periodic restructuring charges rather than consistent, core operational performance.
The significant variance between EPS and operating income suggests that investors should be cautious when relying on headline net income figures. The presence of large, non-recurring items implies that the underlying earnings quality is currently obscured, making it difficult to assess the true sustainable profitability of the business.
While the company's patent portfolio is often cited as a defensive moat, the recent loss of major market share in North American RAN contracts, as noted in industry reports, suggests that the core infrastructure business may be more commoditized than the current valuation might imply.
Short-sellers would likely focus on the risk that Nokia's proprietary technology is losing its competitive edge in the face of Open RAN adoption. If the company's hardware differentiation continues to fade, the reliance on high-margin licensing may not be sufficient to offset the potential long-term decline in its primary infrastructure revenue streams.
Quick answers to the most common questions about buying NOK stock.
For fiscal year 2025, Nokia Oyj (NOK) reported total revenue of $19.89B. This represents a 193.1% increase compared to $6.79B in 1996.
Nokia Oyj (NOK) is profitable, generating $651.0M in net income for the fiscal year ending 2025 with a net profit margin of 3.3%.
Nokia Oyj (NOK) reported an operating income of $782.0M, resulting in an operating profit margin of 3.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Nokia Oyj (NOK) generated $8.66B in gross profit for the year, representing a gross profit margin of 43.5%. This demonstrates the company's core pricing power and production efficiency.