HELSINKI, August 6, 2026, 13:05 EEST — Trading begins on Nasdaq Helsinki.
- Nokia slipped 1.1% to €8.36, as the OMXH25 rose 0.6%.
- AI and cloud bookings were equivalent to 6.3 times the quarterly revenue from these customers.
- Nokia trades at a trailing P/E of 65.8, which is close to Arista’s 62.2.
Nokia Oyj HEL:NOKIA slipped 1.1% to €8.36 on Thursday, while the OMXH25 index in Helsinki climbed 0.6%. The differing performance brings focus to order conversion in trading.
Nokia’s trailing price-to-earnings ratio is 65.8, similar to Arista Networks Inc NYSE:ANET at 62.2. Ericsson STO:ERIC-B has a multiple of 12.8.
However, AI and cloud clients generated €446 million in revenue for the second quarter, accounting for 9.3% of total group sales. The valuation depends on future translation rather than the current sales composition.
| Listed peer | Latest quote basis | Move | Reported trailing P/E |
|---|---|---|---|
| Nokia Oyj HEL:NOKIA | €8.36, Helsinki intraday | down 1.1% | 65.8x |
| Ericsson STO:ERIC-B | SEK96.68, Stockholm intraday | up 0.4% | 12.8x |
| Arista Networks Inc NYSE:ANET | $197.31, August 5 close | up 3.6% | 62.2x |
| Ciena Corp NYSE:CIEN | $408.83, August 5 close | down 0.6% | 136.1x |
European prices were quoted during the day. The U.S. market was still closed.
The peer comparison is not exact. Nokia’s reported earnings for the trailing period are affected by substantial restructuring charges. For the second quarter, its stated margin stood at minus 1.0%, compared to a comparable margin of 9.0%.
The quarter saw improved performance. Group sales climbed 8%, and comparable operating profit advanced 18%. Network Infrastructure was the main driver, posting a 12% increase in sales.
| Q2 metric | 2026 | 2025 | Change |
|---|---|---|---|
| Group net sales | €4.815 billion | €4.443 billion | +8% |
| AI and cloud customer sales | €446 million | About €218 million | +105% |
| AI and cloud share of group sales | 9.3% | About 4.9% | +4.4 percentage points |
| Comparable operating profit | €434 million | €367 million | +18% |
| Comparable operating margin | 9.0% | 8.3% | +0.7 percentage points |
Estimated figure based on the reported 105% growth rate. Nokia did not separately provide the prior-period data.
Comparable operating profit totalled €434 million, surpassing the €382 million LSEG consensus by 13.6%. The reported operating profit showed a loss of €50 million.
Chief Executive Justin Hotard emphasized ongoing supply challenges. “Demand remains strong, while supply continues to be the main industry constraint,” he stated. With capacity becoming more limited, customers are committing to longer-term orders. Nokia Corporation | Nokia
Order intake far exceeds existing sales levels. In Q2, AI and cloud-related orders amounted to 6.3 times the quarterly revenue from these clients. Approximately 50% of those orders are expected to turn into revenue within the next 12 months.
| Conversion test | Reported or guided figure | Derived comparison |
|---|---|---|
| Q2 orders in AI and cloud | €2.8 billion | 6.3 times Q2 AI and cloud revenues |
| Projected conversion in the next 12 months | Roughly €1.4 billion | 3.1 times Q2 AI and cloud revenues |
| Q3 total group sales forecast | Increase of 3% to 7% from previous quarter | €4.96 billion to €5.15 billion |
| Q3 adjusted operating profit outlook | Expected to be stable compared to Q2 | Q2 reference value was €434 million |
| Comparable operating profit outlook for 2026 | €2.1 billion to €2.6 billion | Technical revision of €0.1 billion |
These are derived estimates. Nokia did not issue these specific euro point projections. The revision for the full year was due to discontinued operations, with the operational outlook staying the same.
Nokia projects a slower profit trajectory in the near term. The company anticipates that Q3 comparable operating profit will remain roughly unchanged, followed by a substantial rise in Q4.
The drop on Thursday was unrelated to an ex-dividend adjustment. Shares turned ex-dividend on July 27. Nokia distributed the €0.04 payment on Thursday.
The stock is still up nearly 49% so far this year, but trades 44% beneath its €15 peak over the past 52 weeks. Market expectations have changed significantly.
Analysts remain largely upbeat. Out of 23 surveyed, the average rating is Outperform, and the consensus price target stands at €10.32. Price estimates vary, spanning from €4.65 up to €18.
| Firm or consensus | Date | Recommendation | Target | Implied move from €8.36 |
|---|---|---|---|---|
| 23-analyst average | Current snapshot | Outperform | €10.32 | +23.4% |
| Deutsche Bank | July 27 | Buy | €11.50 | +37.6% |
| Handelsbanken | July 24 | Hold | €9.80 | +17.2% |
| UBS | July 24 | Neutral | €9.65 | +15.4% |
| Barclays | July 27 | Underweight | €8.00 | -4.3% |
Implied moves are based on Thursday’s intraday price.
Risks: Order conversion may be postponed by supply limitations. Ericsson has been impacted by increasing memory-chip prices. Nokia anticipates restructuring charges of €800 million and cash outflows tied to these charges ranging from €700 million to €800 million in 2026.
Nokia is set to announce its third-quarter earnings on October 22. Investors are expected to focus on AI-driven revenue, the pace of order conversion and adjusted margin performance. Gains in orders may not be sufficient to uphold the valuation.
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