NEW YORK, August 29, 2026, 03:00 (ET) – Nokia’s stock slid 3.6% after its artificial intelligence order backlog underscored concerns about near-term cash flow.
- Nokia ADRs slipped 3.59% to $10.21 during Friday’s trading.
- Trading volume was 50.6 million shares, marking a 42% decrease from the 50-day average.
- Orders for AI and Cloud reached €2.8 billion during the second quarter.
- Nokia anticipates that about half of those orders will generate revenue within 12 months.
Nokia Oyj (NYSE: NOK) slipped 3.59% on Friday, wiping out roughly $2.1 billion in market capitalization. The stock ended the session at $10.21, breaking a three-day winning streak.
The drop places more emphasis on Nokia’s AI-order conversion. The company reported a €2.8 billion AI and Cloud intake for the quarter, representing 58% of its total sales in the same period. Management anticipates that around €1.4 billion of this will convert within a year.
The importance of that conversion stems from cash generation being a persistent vulnerability. In the second quarter, Nokia posted a negative free cash flow of €732 million. Net cash decreased by €1.01 billion from the prior quarter to €2.78 billion.
Trading activity on Friday was brisk yet not excessive. A total of 50.6 million ADRs changed hands, marking a 42% decrease from the 50-day average of 86.9 million. The 3.59% decline in the stock appeared to reflect valuation pressure rather than a capitulation event.
| Investor measure | Latest reading | Why it matters |
|---|---|---|
| Friday close | $10.21, off 3.59% | Nearly $2.1 billion market value wiped out |
| Trading volume | 50.6 million ADRs | Equal to 58% of 50-day moving average |
| AI and Cloud orders | €2.8 billion | Accounts for 58% of Q2 sales for the group |
| 12-month conversion | Roughly €1.4 billion | Represents 29% of Q2 group sales |
| Q2 free cash flow | Minus €732 million | Indicates if growth is translating into cash |
The operating business is experiencing growth. Comparable sales increased by 9% in constant currency for the quarter. Network Infrastructure advanced 12%, with Optical Networks up 20% and IP Networks rising 16%.
Sales from AI and Cloud rose by more than twofold to €446 million, comprising 9.3% of the group’s quarterly revenue compared with 5.0% the year before. This shift in revenue mix contributed to a 70 basis point increase in comparable gross margin, reaching 46.0%.
Comparable operating profit increased by 18% to €434 million. However, reported operations posted a loss of €50 million due to €390 million in restructuring costs. This disparity is why investors are focusing on cash performance in addition to adjusted growth.
Nokia maintained its operational forecast, continuing to expect 2026 comparable operating profit between €2.1 billion and €2.6 billion. The company’s AI and Cloud order intake is 1.19 times the midpoint of this projected range.
Analyst forecasts are broadly positive but show variation. A recent survey found eight analysts with buy ratings, two recommending hold, and one rating a sell. The consensus price target stands at $15.02, suggesting a potential gain of 47%, with projections spanning from $8.50 up to $21.
Shares among peers showed mixed performance Friday. BlackBerry (NYSE: BB) declined 5.66%, and Motorola Solutions (NYSE: MSI) edged down 0.11%. Apple (NASDAQ: AAPL) rose 1.63%.
Nokia’s third-quarter results, scheduled for October 22, are the next major financial event. Investors will scrutinise trends in order conversion, third-quarter sales performance, and the outlook for improved profit in the fourth quarter.
Risks: Order conversion may face delays due to supply limitations. Reported cash flow might lag behind comparable profit because of restructuring expenses. Growth figures could also be dampened by customer concentration and a firmer euro.
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