NEW YORK, August 21, 2026, 13:25 EDT — U.S. markets open.
- Nokia’s U.S. ADR traded at $10.13, down 0.23%, in a delayed intraday snapshot.
- AI and cloud orders reached €2.8 billion, 6.3 times quarterly sales to those customers.
- Restructuring charges equal about 34% of the midpoint of 2026 profit guidance.
Nokia Oyj NYSE:NOK slipped 0.23% to $10.13 on Friday. About 34.0 million ADRs had changed hands by 13:25 EDT. That ranked Nokia seventeenth on Yahoo Finance’s most-active U.S. list, although the feed was delayed.
The muted move hides a sharper investor question. Nokia’s €2.8 billion AI-and-cloud order intake equals 6.3 times its latest quarterly sales to those customers. Yet the company expects €800 million of restructuring charges this year.
That bill equals roughly 34% of the €2.35 billion midpoint of full-year comparable operating-profit guidance. The orders offer growth. The restructuring determines how much reaches reported earnings and cash.
Market snapshot
| Metric | August 21 snapshot | Investor read |
|---|---|---|
| ADR price | $10.13 | Down 0.23% |
| Volume | 34.0 million | 33% of 3-month average |
| Market value | $56.5 billion | Large-cap network supplier |
| Trailing P/E | 75.4 | Reported earnings remain depressed |
| 52-week range | $4.23–$17.45 | 42% below the high |
The ADR closed at $10.13 on Wednesday after falling 2.5%. It was the second straight decline. Friday’s intraday price left the shares essentially unchanged from that close.
Nokia’s Q2 figures explain the premium investors still assign to future growth. Sales rose 9% in constant currency, while comparable operating profit increased 18% to €434 million. Reported operating profit was a €50 million loss because restructuring accelerated.
AI order conversion
| AI and cloud measure | Q2 2026 | Derived signal |
|---|---|---|
| Customer sales | €446 million | Up 105% year over year |
| Order intake | €2.8 billion | 6.3× quarterly sales |
| Expected conversion in 12 months | About half | Roughly €1.4 billion |
| Network Infrastructure growth | 12% | Optical and IP led |
Chief Executive Justin Hotard said, “We expect around half of these orders to convert to revenue over the next twelve months.” Supply remains the main industry constraint, he added. That timing makes execution more important than headline bookings. Nokia Q2 report
The restructuring bridge is substantial. Comparable profit exceeded the reported result by €484 million in Q2. Full-year charges are expected at €800 million, with €700 million to €800 million of related cash outflows.
Nokia versus Ericsson
| Q2 measure | Nokia | Ericsson |
|---|---|---|
| Organic or constant-currency sales growth | +9% | -1% |
| Adjusted/comparable gross margin | 46.0% | 48.4% |
| Adjusted/comparable operating measure | 9.0% operating margin | 13.1% EBITA margin |
| Free-cash-flow signal | 55%–75% FY conversion guide | SEK 0.4 billion in Q2 |
Telefonaktiebolaget LM Ericsson NASDAQ:ERIC still holds the margin lead. Its Q2 adjusted gross margin was 48.4%, against Nokia’s 46.0%. But Ericsson’s organic sales fell 1%, while Nokia grew 9% in constant currency.
Nokia is also shrinking its China footprint. Reuters reported on August 18 that it plans to close almost all mainland sites by year-end. A spokesperson said Nokia was “adjusting our operational footprint in China to address this reality.” Reuters
Analyst recommendations
| August 2026 rating | Analysts | Share |
|---|---|---|
| Strong Buy | 4 | 36% |
| Buy | 4 | 36% |
| Hold | 3 | 27% |
| Sell / Strong Sell | 0 | 0% |
| Total | 11 | 100% |
The 11-analyst consensus is Buy. The average target is $15.02, implying 48% upside from Friday’s snapshot. The range is wide: $8.50 to $21.00. That spans 16% downside to 107% upside.
JPMorgan’s Sandeep Deshpande raised his target to $21 in June and kept an Overweight rating. Argus analyst Jim Kelleher moved Nokia to Buy in April with a $15 target. Both calls rested on AI networking demand.
Risks: AI orders may convert later than expected. Supply shortages and memory costs could squeeze margins. Restructuring cash outflows, China execution and currency moves could also blunt the earnings recovery.
The next test is simple. Nokia must turn roughly €1.4 billion of expected order conversion into revenue while closing the reported-profit gap. Until then, the valuation reflects promise more than current earnings.
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