HELSINKI, July 24, 2026, 11:08 EEST
- Shares dropped 3.4% to €8.40 while Helsinki’s blue-chip index gained 0.36%.
- AI and cloud orders equalled 6.3 times the quarter’s related sales.
- Nokia’s operational full-year profit outlook remained unchanged after a technical revision.
Nokia shares fell 3.4% to €8.40 by 10:53 EEST on Friday. The OMX Helsinki 25 gained 0.36%. The market was open, with regular trading scheduled through 18:30 EEST.
The move came after Nokia beat profit estimates. The harder question is when its AI orders become booked revenue.
AI and cloud order intake reached €2.8 billion in the second quarter. Related sales were €446 million. Orders were 6.3 times quarterly sales.
Management expects around half to convert within 12 months. That implies about €1.4 billion, based on a preliminary calculation. It equals 79% of annualised second-quarter sales.
The conversion gap helps explain the market reaction. Much of the remaining order book extends beyond the next four quarters.
| Measure | Q2 figure | Comparator | Difference |
|---|---|---|---|
| AI and cloud order intake | €2.8 billion | €1.0 billion in Q1 | 2.8 times |
| Order-to-sales ratio | €2.8 billion | €446 million Q2 sales | 6.3 times |
| 12-month conversion | About €1.4 billion | €1.78 billion annualised Q2 sales | About 79% |
| Comparable operating profit | €434 million | €382 million consensus | About 14% |
The conversion figure is a preliminary reporter estimate based on management’s “around half” statement. Ratios are rounded. Nokia Corporation | Nokia
Quarterly net sales rose 8% to €4.82 billion. Comparable operating profit climbed 18% to €434 million. That beat analyst consensus by about 14%.
Reported results were weaker. Nokia posted a €50 million operating loss, against a €147 million profit last year. Faster restructuring drove the gap.
The company lifted its profit range to €2.1 billion-€2.6 billion. But the €100 million increase reflected discontinued operations. The underlying outlook did not change.
Nokia expects third-quarter sales to grow 3%-7% sequentially. Comparable operating profit should remain broadly flat. Management then expects a meaningful fourth-quarter increase.
“Demand remains strong, while supply continues to be the main industry constraint,” Chief Executive Justin Hotard said. Longer-term orders help customers secure scarce capacity. Nokia Corporation | Nokia
Bank of America NYSE:BAC kept a Buy rating after the report. It said the order intake “significantly exceeded expectations.” Third-quarter guidance appeared slightly soft, it added. Most deliveries should land in 2027, with some reaching 2028. TipRanks
Peer Ericsson STO:ERIC-B warned last week about higher memory-chip costs. Nokia still expanded comparable gross margin by 70 basis points to 46%.
Cash remains another constraint. Nokia expects €700 million-€800 million of restructuring outflows this year. Related charges should total about €800 million.
Risks include further component inflation, slower customer spending and delayed capacity expansion. The earnings path also leans heavily on a fourth-quarter profit step-up.
The next test comes on October 22, when Nokia reports third-quarter results. Investors will watch order conversion, supply relief and the promised sales growth.
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