HELSINKI, August 29, 2026, 16:01 EDT
- Nokia’s ADRs dropped 3.59% to $10.21 on Friday.
- Second-quarter AI and cloud sales rose by over two times.
- Comparable operating profit increased by 18%, but reported operating profit moved into negative territory.
- The consensus analyst price target of $15.02 indicates a potential upside of roughly 47%.
Nokia Oyj ADRs declined by 3.59% on Friday, despite gains in its fastest-expanding network unit. The drop prompted investors to consider AI demand in comparison to the expense of a major restructuring effort.
The stock ended the session at $10.21, marking its third straight increase. Trading volume was 59.9 million shares, representing about two-thirds of its usual daily average MarketWatch.
Nokia Oyj (NYSE: NOK) continues to represent a recovery play, showing contrasting performances in its earnings results. Comparable operating profit rose by 18% to reach €434 million, while reported operating profit fell to a loss of €50 million.
| Measure | Q2 2026 | Year-on-year | Investor read-through |
|---|---|---|---|
| Net sales | €4.82 billion | +8% reported | Rising demand |
| AI and cloud sales | Not separately disclosed | +105% | Main driver of growth |
| Comparable operating profit | €434 million | +18% | Leverage in underlying performance |
| Reported operating profit | −€50 million | From +€147 million | Impact from restructuring |
| Net cash | €2.78 billion | −4% | Supports balance sheet |
Network Infrastructure delivered the highest operating signal, with sales increasing by 12% to €2.04 billion. The operating margin climbed to 8.1%, up from 6.4% Nokia’s Q2 report.
Optical Networks posted a 20% rise, and IP Networks were up 16%. Nokia reported that order intake for AI and cloud amounted to €2.8 billion, with roughly half expected to generate revenue within the next twelve months.
The backlog provides visibility, but supply is still the primary limitation. Chief Executive Justin Hotard said customers are making longer-term orders due to ongoing tightness in key optical components.
The earnings transition is less straightforward. Nokia anticipates restructuring charges of €800 million this year. Cash outflows connected to these charges are projected at €700 million to €800 million.
The company maintained its operational forecast. Comparable operating profit remains projected at €2.1 billion to €2.6 billion. The updated range is due to discontinued-business reporting, not improved business performance.
Sales in the third quarter are projected to increase sequentially by 3% to 7%. Comparable operating profit is anticipated to be largely stable, with a significant rise forecast for the fourth quarter.
The current valuation requires progress. The ADR is trading at approximately 23.9 times forward earnings. On average, eleven analysts recommend a Buy rating, with a price target of $15.02 StockAnalysis.
The target indicates a possible 47% gain, though Nokia’s shares have already climbed roughly 57% in 2026. Friday’s drop may signal investors taking profits after that increase, rather than a fresh fundamental issue.
Monday’s U.S. reopening will serve as the next test for markets. Investors are set to monitor if the ADR remains above Friday’s $10.16 low, as AI orders progress toward recognized revenue.
Risks: Shipments may be delayed by component shortages. Cash usage could rise due to restructuring expenses, and telecom customers might defer purchases. Fluctuating currencies and intense competition may put further pressure on margins.
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