Track market-moving stories before they get noisy

After SpaceX restricted use of its Starlink and Starshield satellite internet services in Ukraine, causing fast-moving drones to disconnect and drop out of the sky, Kyiv is looking for alternatives.

Ukraine's Ministry of Defense said on Thursday that it has signed a letter of intent to develop new defense and satellite communication capabilities in partnership with Finnish tech companies Nokia and ICEYE, which makes satellites.

"Modern warfare has proven that reliable communications are a matter of national security," Ukraine President Volodymyr Zelenskyy said in a statement. "We must all rely on capabilities that we can control."

Zelenskyy also announced a partnership with Norway this week to jointly develop air defense and communications systems that could serve as an alternative to Starshield.

Chad Anderson, founder and CEO of venture capital firm Space Capital, said such an alternative could be "two to three years away" and that "matching Starlink's scale is a longer road."

SpaceX has around around 11,000 satellites in orbit, according to data tracked by astronomer Jonathan McDowell.

Anderson said Starshield may be an even tougher service to replace. "The Pentagon's own contracting documents say SpaceX is the only provider that can meet some of its needs through 2026. Capital isn't the constraint any more. Launch is."

Even Starlink competitors have relied on SpaceX launches to put their satellites in orbit.

As of Friday, Ukraine officials said the country is still experiencing restrictions on Starlink, which cut connectivity for drones or other aircraft traveling at speeds over 100 mph.

Both the Trump administration and SpaceX CEO Elon Musk have shirked responsibility for the unannounced Starlink service changes that Ukraine reported more than a week ago. President Donald Trump told reporters at the White House on Friday that he would call on Musk to lift the restrictions.

SpaceX executives didn't respond to a request for comment.

Lawmakers in the U.S. from both parties are calling for a formal probe of Musk and SpaceX regarding the alleged unilateral changes the company made to its services in Ukraine.

Jay Shambaugh, a senior fellow at Brookings and professor of economics and international affairs at George Washington University, told CNBC in an email that the sudden Starlink changes are "part of a pattern since Trump came back into office of the United States acting as an unreliable ally."

Shambaugh cautioned that, "over time, that can reduce U.S. exports to the EU if those countries don't want to be dependent on something where the U.S. can cut them off."

Rivals to Starlink are on the horizon, including Amazon's Leo, France's Eutelsat and a forthcoming service from Jeff Bezos' Blue Origin called TeraWave, which has yet to deploy its first satellites.

Beyond Ukraine, several countries are looking into sovereign satellite communications systems. The EU is building IRIS², a constellation of hundreds of satellites, but its first launches aren't expected until 2029.

Since Russia's invasion of Ukraine in February 2022, venture and private equity investors have poured about $8 billion into Starlink and Starshield alternatives, according to research by Anderson, whose firm tracks industry deals. About $3.9 billion of that funding has gone to potential Starlink competitors, mostly Spacesail and China SatNet.

Virginia Burger, senior defense policy analyst with the Project on Government Oversight, told CNBC in an interview that the problem today is there's no drop-in replacement for Starlink, and combat is moving more into "unmanned systems, drone warfare and other systems that require high-speed internet."

— CNBC's Annie Palmer contributed reporting.

Key Takeaways Nokia's Q3 earnings call signaled 25-30% Optical and IP Networks growth in 2027, driven by AI demand.AI and cloud sales surged 123%, while supply constraints drove NOK to expand optical manufacturing capacity.Nokia upheld its 2026 profit outlook despite margin pressures, cash outflows and higher restructuring costs.
Nokia Oyj (NOK - Free Report) emphasized accelerating AI infrastructure demand, improving operating leverage and capacity expansion during its third-quarter 2026 earnings call. Management outlined stronger growth expectations for Optical and IP Networks in 2027 while acknowledging supply constraints and near-term profitability pressures.

Nokia’s third-quarter 2026 comparable profit from continuing operations was $0.10 per share, which beat the Zacks Consensus Estimate of $0.08. Net sales of $5.93 billion also surpassed the consensus estimate of $5.80 billion. Management maintained its full-year operating profit outlook despite increased restructuring and working capital requirements.

NOK Sees Stronger AI and Cloud DemandPresident and CEO Justin Hotard highlighted AI and cloud as Nokia's fastest-growing customer segment, with sales increasing 123% year over year and representing 12% of group revenues. Gross order intake climbed 118% to €1.5 billion.

IP Networks revenues grew 43%, while Optical Networks expanded 18%, reflecting hyperscaler demand and increasing investment in data center connectivity.

Hotard expects combined Optical and IP Networks growth of 25-30% in 2027. During discussions with Raymond James, he emphasized that demand extends beyond 2027, although the company's formal projection covers next year.

Nokia Expands Optical Capacity Amid Supply ConstraintsHotard acknowledged that demand continues to exceed supply across Optical and IP Networks. Shipments of 800-gig coherent pluggables more than doubled sequentially, supported by design wins involving 29 customers.

Nokia's San Jose indium phosphide manufacturing facility remains scheduled to begin production before year-end. Management reported completing 90% of process development, with production yields and output becoming important milestones during 2027.

Responding to BNP Paribas, Hotard described the planned Chandler manufacturing facility as a longer-term capacity investment targeting a 2029 timeframe. Its production capabilities will depend on emerging customer requirements.

NOK Targets Margin Recovery as New Products ScaleChief financial officer Marco Wiren attributed Network Infrastructure's gross margin decline to product mix and initial costs associated with ramping AI-focused IP products. Segment gross margin fell 150 basis points to 41.2%.

During questioning from Danske Bank, Wiren characterized these pressures as temporary, expecting improvement in the fourth quarter as production volumes increase and pricing discipline supports profitability.

Comparable group operating margin nevertheless expanded 220 basis points to 11.7%. Management emphasized that scaling AI infrastructure revenues should generate additional operating leverage despite near-term manufacturing costs.

Nokia Faces Higher Cash RequirementsWiren reported negative free cash flow of €99 million, reflecting restructuring payments, higher receivables and inventory accumulation.

Management plans an additional €400 million working capital investment during 2026 to secure supplies and support anticipated growth next year. Consequently, Nokia lowered its free cash flow conversion assumption to 35-55%.

Restructuring charges are now expected to reach approximately €1.1 billion, with associated cash outflows of €800-€900 million. Accelerated restructuring and integration efforts aim to establish a more efficient operating cost structure.

NOK Maintains Caution on Mobile InfrastructureMobile Infrastructure sales increased 5%, supported by 10% growth in Radio Networks. However, management clarified that some deliveries originally expected in the fourth quarter occurred earlier.

Responding to DNB Carnegie, Hotard rejected the characterization of these deliveries as customer prebuying. He reiterated that Nokia does not anticipate an imminent broader telecom investment cycle.

Management expects the overall telecom market to remain broadly flat. Hotard also highlighted increasing component costs and supply shortages, while Wiren emphasized ongoing mitigation through commercial discipline and operational improvements.

Nokia Remains Focused on Execution and ProfitabilityManagement maintained its 2026 comparable operating profit outlook of €2.1 billion to €2.6 billion, expecting performance above the midpoint. Fourth-quarter revenues are projected to increase sequentially by 20-24%.

Hotard emphasized continued portfolio simplification and the Infinera integration, with €200 million in synergies targeted by year-end, one year ahead of schedule.

The overarching message centered on converting AI-driven demand into profitable growth while addressing capacity limitations, working capital pressures and restructuring requirements.

What NOK's Zacks Rank & Style Scores IndicateNOK currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. Its Value Score of B reflects favorable valuation characteristics, while its Momentum Score of A indicates strong price momentum. However, its Growth Score of F signals comparatively weak growth characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock's VGM Score of C reflects a mixed overall assessment across value, growth and momentum. Although favorable individual scores highlight certain strengths, the combined ratings fall short of the highest-ranked Zacks combinations. The Zacks Rank remains subject to change as analysts revise earnings estimates following the latest quarterly results.

Hydro’s adjusted EBITDA for the third quarter of 2026 was NOK 9,089 million, up from NOK 5,996 million in the same quarter last year. Higher all-in metal prices and higher alumina prices contributed positively in the quarter, along with improved earnings in Recycling and Extrusions. The strong performance was partially offset by higher anode and energy costs in Aluminium Metal, increased energy costs in Bauxite & Alumina due to gas supply disruptions, a stronger NOK vs USD, and negative price area differences in Energy.

Alunorte resumed regular operations following temporary gas supply disruptions  Free cash flow of NOK 1.4 billion impacted by higher metal prices and associated working capital requirements and prepayments First metal produced at HalZero test facility, marking important milestone for carbon-free technology track Commercial momentum continues for Hydro's low-carbon and recycled aluminium portfolio New PPAs secured, further strengthening Hydro's long-term power position Hydro delivered strong profitability in the quarter, with adjusted earnings per share increasing from NOK 1.0 in the third quarter of 2025, to NOK 2.3 in the third quarter of 2026. Free cash flow was NOK 1.4 billion, as strong adjusted EBITDA was partly offset by higher net operating capital, primarily driven by increased metal prices and associated working capital requirements and prepayments. While this development reflects the current market environment, improving cash conversion and working capital efficiency remains a clear priority going forward. Consequently, Hydro has updated its year-end capex guiding to around NOK 12.5 billion, down from NOK 13.5 billion, and net working capital guiding to around NOK 32 billion, up from NOK 30 billion. The twelve month adjusted RoaCE ended at 12.5 percent.

“Hydro’s third quarter results reflect strong operational performance amplified by market tailwinds. Record high liquid metal production from our Norwegian smelter system, combined with strong pricing throughout the quarter drove solid earnings and strong profitability. Operational excellence enables us to capture more of the upside when markets are strong and, more importantly, builds resilience when markets turn,” says Eivind Kallevik, President and CEO of Hydro. 

During the third quarter, disruption in natural gas supplies to Alunorte temporarily reduced production at the refinery. Through mitigating actions, including securing alternative LNG supply, Hydro maintained operational continuity and successfully restored alumina production.

Aluminium Metal benefited from higher all-in metal prices and strong operational performance, while Recycling and Extrusions delivered improved earnings supported by strong recycling margins. Hydro's Norwegian smelters increased liquid metal production to record levels, reinforcing Hydro's position as a reliable supplier of low-carbon aluminium to European customers.

In parallel, Hydro experienced continued momentum for its low-carbon and recycled products, with leading brands like CHANEL Fragrances and Beauty, General Motors, and Mercedes-Benz integrating Hydro’s solutions in their product lines.

“We continue to see strong demand for our low-carbon and recycled offerings from some of the world’s leading consumer brands. When brands like CHANEL Fragrances and Beauty and Mercedes-Benz choose Hydro, they place their trust in our quality, reliability, and ability to help them achieve their ambitions. That trust has commercial value and reinforces our confidence in the long-term opportunities for low-carbon and recycled aluminium,” says Kallevik.

Hydro reached an important milestone in the development of its HalZero technology by producing aluminium for the first time, demonstrating the core electrolysis technology beyond laboratory scale. The achievement marks an important step toward Hydro’s long-term ambition of eliminating emissions from electrolysis and anode production. Further testing, piloting and technology development remain before any potential industrial application. Enova awarded NOK 82 million in funding to support the concept development and planning of an industrial concept pilot.

“This is an important milestone and a significant step forward in the development of HalZero. Producing the first metal demonstrates that the electrolysis technology works and paves the way for the continued development of a game changing technology with the potential to enable emission-free aluminium production in the future,” says Kallevik.

During the quarter, Slovalco began the restart of primary aluminium production following the agreement announced in July on long-term framework conditions with the Slovak government. The restart commenced in late August, marking the return of capacity curtailed during the European energy crisis in 2022. The first phase targets an annual production capacity of 75,000 tonnes by the end of February 2027. The restart reflects the importance of competitive power, predictable regulatory frameworks, and effective industrial policy in maintaining and rebuilding Europe's industrial base.

Results and market development per business area

Adjusted EBITDA for Bauxite & Alumina decreased compared to the third quarter of last year, to NOK 283 million from NOK 1,290 million, mainly driven by lower alumina sales prices, natural gas supply disruptions resulting in higher LNG sourcing costs and unfavourable BRL/USD exchange rate effects.This was partly offset by lower raw material costs and lower fixed costs.

PAX traded up throughout the third quarter 2026 to USD 370 per mt at the end on the quarter, diverging from Chinese alumina prices moving down. Despite lower alumina production at certain refineries in Indonesia because of raw material supply challenges, the World ex-China alumina market was oversupplied in the quarter. China's alumina market became increasingly oversupplied during the quarter as new refinery capacity came on line.  Chinese alumina prices were close to the marginal cash production cost. Approximately half of China’s alumina production depends on bauxite imported from Guinea. The government of Guinea is considering the possibility of restricting annual bauxite exports volume, but no formal announcement has been made.

Adjusted EBITDA for Energy decreased in the third quarter compared to the same period last year, to NOK 411 million from NOK 828 million. The decrease is mainly due to a loss on price area differences compared to a gain in the same period last year.

Average Nordic power prices increased in the third quarter compared with both the previous quarter and the same quarter last year. The increase was mainly driven by weak hydrological conditions and higher power prices in Continental Europe. Price area differences between the south and north of the Nordic market were above the previous quarter and below the same period last year. The price difference between central Norway and northern Sweden widened significantly compared with both the previous quarter and the same quarter last year.

The Nordic hydrological balance at the end of the quarter was 13 TWh below normal, compared to 15 TWh below normal at the end of last quarter and 1 TWh below normal at the same time last year. Norwegian hydropower reservoirs were around 67.8 percent of full capacity at the end of the quarter, which is below the normal for this time of year of 82.8 percent. The distribution was uneven, with lower than normal levels in the southern and central Norway, and higher than normal levels in the north.

Adjusted EBITDA for Aluminium Metal increased in the third quarter of 2026 compared to the third quarter of 2025, to NOK 7,031 million from NOK 2,732 million, due to higher all-in metal prices, partly offset by lower sales volume, higher energy and carbon cost, and weaker USD to NOK. Global primary aluminium consumption was slightly higher compared to the third quarter of 2025, driven by a 3.0 percent increase in Asia. Primary consumption in the World ex. China is estimated to be down compared to the third quarter of 2025. The Middle East crisis continued to affect the aluminium market and prices during the third quarter. Following indications that the conflict might be nearing an end at the end of the second quarter, tensions increased again in the third quarter, directly contributing to higher aluminium prices. Throughout the quarter the market traded in a range between USD 3,100 per mt and USD 3,300 per mt. Consequently, the three month aluminium price increased slightly throughout the third quarter of 2026, starting the quarter at USD 3,076 per mt and ending at USD 3,170 per mt. 

Adjusted EBITDA for Metal Markets decreased in the third quarter of 2026 compared to the same period last year, to NOK 125 million from NOK 154 million, due to lower results from sourcing and trading activities, partly offset by higher results from recyclers.

Adjusted EBITDA for Extrusions increased in the third quarter of 2026 compared to the same quarter last year, to NOK 1,189 million from NOK 1,107 million, driven by higher recycling margins in combination with increased sales volume, partly offset by higher maintenance cost, higher SG&A cost and negative currency effects mainly from stronger NOK/USD.

CRU estimates that European extrusion demand increased by 1 percent in the third quarter of 2026 compared to the same quarter last year, following weaker market conditions in the first half of the year. Automotive demand remained positive, supported by continued growth in battery electric vehicle production. Non-automotive transportation also turned positive after a weak start to the year, while building and construction remained broadly stable in the quarter.

CRU estimates that North American extrusion demand remained broadly unchanged in the third quarter of 2026 compared to the same quarter last year, following a decline in the first half of the year. Commercial transportation continued to grow, supported by improving truckload rates, with further growth expected going forward. The industrial segment also remained solid, supported in part by continued datacenter investments. Automotive demand remained subdued, reflecting persistent headwinds in electric vehicle production.

Other key financials

Compared to the second quarter of 2026, Hydro’s adjusted EBITDA increased to NOK 9,089 million from NOK 8,923 million, mainly due to higher all-in metal and alumina prices and lower fixed costs in the third quarter of the year. This was partially offset by higher energy costs in Bauxite & Alumina due to gas supply disruptions and seasonally lower Extrusion volumes and margins.

Net income (loss) amounted to NOK 5,263 million in the third quarter of 2026. Net income (loss) included unrealized derivative losses, mainly on LME related contracts of NOK 204 million, environmental cost of NOK 111 million, rationalization charges and closure costs of NOK 81 million, and impairment charges on fixed assets of NOK 70 million. The tax effect on these adjustments reflected a standardized tax rate for taxable gains and tax deductible losses. Adjusted net income (loss) for the first quarter ended at NOK 4,372 million.

Hydro’s net debt decreased from NOK 16.3 billion to NOK 15.4 billion during the third quarter of 2026. The net debt decrease was mainly due to positive EBITDA contributions, partially offset by net operating capital build, investments and negative other operating cash flow.

Adjusted net debt decreased from NOK 22.8 billion to NOK 21.9 billion, mainly driven by the decrease in net debt.

Reported earnings before financial items and tax (EBIT), and net income include effects that are disclosed in the quarterly report. Adjustments to EBITDA, EBIT, and net income (loss) are defined and described as part of the alternative performance measures (APM) section in the quarterly report.

Investor contact: 

Gerd Aalborg Aas

+47 91305534

[email protected]

Valentina Gandolfi

+47 95882355

[email protected] 

Media contact: 

Halvor Molland 

+47 92979797

[email protected]

The information was submitted for publication from Hydro Investor Relations and the contact persons set out above. Certain statements included in this announcement contain forward-looking information, including, without limitation, information relating to (a) forecasts, projections and estimates, (b) statements of Hydro management concerning plans, objectives and strategies, such as planned expansions, investments, divestments, curtailments or other projects, (c) targeted production volumes and costs, capacities or rates, start-up costs, cost reductions and profit objectives, (d) various expectations about future developments in Hydro's markets, particularly prices, supply and demand and competition, (e) results of operations, (f) margins, (g) growth rates, (h) risk management, and (i) qualified statements such as "expected", "scheduled", "targeted", "planned", "proposed", "intended" or similar. Although we believe that the expectations reflected in such forward-looking statements are reasonable, these forward-looking statements are based on a number of assumptions and forecasts that, by their nature, involve risk and uncertainty.  

Various factors could cause our actual results to differ materially from those projected in a forward-looking statement or affect the extent to which a particular projection is realized. Factors that could cause these differences include, but are not limited to: our continued ability to reposition and restructure our upstream and downstream businesses; changes in availability and cost of energy and raw materials; global supply and demand for aluminium and aluminium products; world economic growth, including rates of inflation and industrial production; changes in the relative value of currencies and the value of commodity contracts; trends in Hydro's key markets and competition; and legislative, regulatory and political factors. No assurance can be given that such expectations will prove to have been correct. Except where required by law, Hydro disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

NHY presentation Q3 2026

Shares of Nokia Corporation (NOK -14.92%) plunged on Thursday, along with the rest of the AI-related tech sector, falling 15.4% as of 3:49 p.m. EDT.

Nokia delivered an earnings beat this morning; however, in this earnings season, tech company earnings "beats" don't mean much unless they're truly massive. Overly high expectations, along with fears over the sustainability of AI spending, appear to be weighing on Nokia's stock today.

NOK Nokia$7.87-$1.38 (-14.92%)

NYSE · As of 4:00 PM ET 10/22/26

Like most AI stocks, Nokia had already rallied this year heading into this earnings report, though the stock was well off its June highs. Still, Nokia entered trading today with a P/E ratio in the high 70s, leaving little room for disappointment.

In the third quarter, the company grew revenue by 9.7% to 5.15 billion Euros, with adjusted earnings per share up 50% to $0.09 per share. That profit growth showed a nice 220-basis-point expansion in operating margins. Both figures were head of expectations.

10% revenue growth doesn't necessarily scream "AI growth," however, Nokia's segments displayed a remarkable range. Management noted that AI and cloud customers grew revenue by 123%, while Nokia's order intake surged 118% for that segment.

AI and cloud sales appear within the overall network segment, which grew revenue 15%. Mobile networks grew by a more pedestrian 5%, in line with the overall growth of that industry.

These were solid results, but perhaps not enough for a market that had previously bid Nokia up to the status of an "AI stock." Additionally, Nokia merely reiterated its full-year 2026 guidance without increasing it, which may have contributed to dashed expectations.

Image source: Getty Images.

A sector-wide sell-offIt appears Nokia's sell-off may have less to do with the reported results and more to do with widespread selling across AI stocks today. While most AI companies have been reporting strong results, it appears investors are growing nervous about the sustainability of these growth and profit figures going forward after a three-year "boom."

However, if the AI build-out extends, for say, another five years, current prices would be bargains. While the boom's length is uncertain, investors seeking more AI exposure may want to buy this dip.

Key Takeaways Nokia's Q3 earnings beat estimates by 29.45%, while revenues climbed 10% year over year to 5.15 billion Euro.AI & Cloud sales surged 123%, driving 43% growth in IP Networks and 18% growth in Optical Networks.Nokia maintained its 2026 profit outlook but lowered its free cash flow conversion forecast to 35-55%.
Nokia Corporation (NOK - Free Report) reported strong third-quarter 2026 results, with both the top and bottom lines beating the Zacks Consensus Estimate. Comparable earnings increased year over year, while revenues rose 10%, driven by robust growth in IP Networks and Optical Networks, supported by accelerating AI & Cloud demand.

The company's earnings beat the consensus estimate by 29.45%, while revenues surpassed expectations by 2.22%. AI & Cloud net sales surged 123% on a constant currency basis, with order intake reaching €1.5 billion during the quarter.

NOK's Net IncomeNokia reported a net profit of €156 million ($179.5 million) or €0.03 per share in the third quarter compared with €80 million or €0.01 per share in the year-ago quarter. Higher restructuring and integration costs weighed on reported operating profitability despite revenue growth.

Comparable profit from continuing operations was €498 million ($573.1 million) or €0.09 (10 cents) per share, up from €334 million or €0.06 per share in the prior-year quarter. The bottom line beat the Zacks Consensus Estimate of 8 cents.

Nokia's RevenuesQuarterly net sales were €5.15 billion ($5.93 billion), up 10% from €4.70 billion in the year-ago quarter. On a constant currency basis, revenues grew 9%, primarily driven by strong AI & Cloud demand and growth in Network Infrastructure. Revenues surpassed the Zacks Consensus Estimate of $5.8 billion.

Net sales from Network Infrastructure totaled €2.16 billion ($2.48 billion), increasing 17% year over year. On a constant currency basis, IP Networks recorded 43% growth, supported by strong AI & Cloud demand and increased sales to telecom providers. Optical Networks grew 18%, driven by AI & Cloud and telecom provider demand, particularly in the Americas. Meanwhile, Fixed Networks declined 22%, reflecting the company's continued focus on higher-margin offerings.

Mobile Infrastructure generated revenues of €2.9 billion ($3.34 billion), up 5% year over year. Radio Networks grew 10% on a constant currency basis, partly benefiting from revenue acceleration from the fourth quarter. Technology Standards increased 8%, supported by licensing agreements, while Core Software declined 13% due to softness in certain applications and server infrastructure supply constraints.

Portfolio Businesses recorded revenues of €96 million ($110.5 million), down 2% on a constant currency basis. However, profitability improved, supported by Site Implementation and Outside Plant.

NOK's Regional PerformanceRegion-wise, net sales from the EMEA region increased 12% year over year to €2.15 billion ($2.48 billion), supported by growth across Network Infrastructure and Mobile Infrastructure.

Revenues in the APAC region increased 7% to €1.17 billion ($1.35 billion), while the Americas generated €1.83 billion ($2.11 billion), up 9% year over year. Growth in the Americas was supported by strong demand for IP Networks and Optical Networks.

Nokia's Margin PerformanceIn the September quarter, comparable gross margin was 44.6%, down 20 basis points from 44.8% in the year-ago quarter, primarily due to product mix. Reported gross margin declined 220 basis points to 42.2%, reflecting higher restructuring costs.

Comparable operating profit increased 35% year over year to €605 million ($696.2 million). Comparable operating margin expanded 220 basis points to 11.7%, benefiting from revenue growth and operating efficiencies. Reported operating profit declined to €196 million from €252 million, primarily reflecting accelerated restructuring charges.

NOK's Cash Flow & LiquidityDuring the September quarter, Nokia generated €95 million ($109.3 million) in net cash from operating activities compared with €597 million in the year-ago period. Free cash flow was negative €99 million ($113.9 million), reflecting working capital outflows, restructuring-related cash payments and capital expenditures.

As of Sept. 30, 2026, the company had €4.05 billion ($4.66 billion) in cash and cash equivalents, with long-term interest-bearing liabilities of €1.87 billion ($2.15 billion). Net cash and interest-bearing financial investments totaled €2.58 billion, down from €2.78 billion at the end of the preceding quarter.

Outlook of NokiaFor 2026, Nokia maintained its comparable operating profit outlook of €2.1-€2.6 billion. Free cash flow conversion is now projected at 35-55% of comparable operating profit, down from 55-75%, reflecting additional working capital investments and accelerated restructuring. Capital expenditures are estimated at €750-€850 million.

The company continues to expect Network Infrastructure net sales growth of 12-14% in 2026 on a constant currency and portfolio basis. Its updated assumptions indicate that combined IP Networks and Optical Networks growth will exceed the previous 18-20% expectation. Nokia also anticipates 20-24% sequential net sales growth in the fourth quarter, supported by seasonal demand.

NOK’s Zacks Rank & Stocks to ConsiderNokia currently has a Zacks Rank #3 (Hold).

HubSpot (HUBS - Free Report) currently sports a Zacks Rank #1 (Strong Buy). It delivered an earnings surprise of 4.97% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

HubSpot continues to witness rising adoption among larger customers as businesses consolidate marketing, sales and service workflows on a unified AI-enabled platform. Management expects platform consolidation and AI adoption trends to remain key long-term growth drivers.

Ubiquiti Inc. (UI - Free Report) has a Zacks Rank #2 (Buy) at present. In the last reported quarter, it delivered an earnings surprise of 22.021%.

Ubiquiti spends significantly on research and development activities for developing innovative products and state-of-the-art technology to expand its addressable market and remain at the cutting edge of networking technology. The company believes its new product pipeline will help it increase average selling prices for high-performance, best-value products, thus raising the top line. Ubiquiti is witnessing healthy traction in the Enterprise Technology segment.

Corning Incorporated (GLW - Free Report) currently carries a Zacks Rank #2. It delivered an earnings surprise of 2.41% in the trailing four quarters.

Corning’s competitive strength lies in its focus on innovation. The growing adoption of innovative optical connectivity products for generative AI applications is expected to be a key growth driver in its Optical Communication segment. Some of its businesses stand to benefit from government regulations. For example, the fiber optic business is a direct beneficiary of the government-mandated bridging of the digital divide across the United States.

Nokia just beat earnings on surging AI data center demand, yet its stock is cratering while rival Ericsson barely flinches. The reason why reveals something important about where each company is actually making its money.

A profit beat powered by artificial intelligence (AI) data center demand is causing a sharp selloff at one of Europe’s biggest network equipment makers. Nokia (NYSE:NOK | NOK Price Prediction) stock is at $8.34 in early trading, down 10% after the company’s Q3 2026 results topped estimates, a drop that runs counter to the strength of the report.

The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 1.37% as investors sell AI names across the board, leaving the decline in Nokia stock far worse than the broad market’s. Tech stocks are generally struggling today, as the Technology Select Sector SPDR ETF (NYSE ARCA:XLK) is falling 3%. Meanwhile, Ericsson (NASDAQ:ERIC) stock is at $10.29, down 1%, a much softer slide that puts Nokia’s own report at the center of the selling.

Data Center Orders Power Nokia’s Profit Beat
Comparable operating profit at Nokia climbed 35% year over year to $679.58 million, beating analyst estimates as demand for networking equipment tied to AI infrastructure accelerated. Revenue at the company reached $5.79 billion, comfortably ahead of the $5.07 billion consensus. The upside came partly from delivering a portion of Nokia’s data center equipment backlog, even as the industry contends with constrained supplies and higher prices for components such as memory chips.

AI & Cloud customers, a group that includes hyperscalers, generated $708.79 million in net sales for Nokia, up 123% at constant currency. Chief Executive Justin Hotard declared, “In AI & Cloud, net sales more than doubled year-over-year and we secured EUR 1.5 billion in new orders.” Nokia’s routing sales also surged, with its IP Networks line jumping 45% on demand from AI & Cloud customers building out data center capacity.

Nokia’s Data Center Mix Sets It Apart From Ericsson
Data center operators increasingly buy the optical transport and routing gear Nokia sells alongside its mobile network equipment, a mix that ties a growing share of its business to AI infrastructure budgets (we covered seven suppliers riding this same expansion, from power to networking, in a free report you can grab here). Ericsson, by contrast, sells mainly radio access equipment to wireless carriers, the same operator market served by smaller telecom equipment supplier Ribbon Communications (NASDAQ:RBBN). That split means the softer decline in Ericsson shares shows how much of the selling is specific to Nokia stock.

Executives on Nokia’s earnings call said AI and cloud customers made up 12% of order intake and cited “two additional hyper-scalers” as new wins. Supply remains a swing factor. The call also noted that “some operators delayed due to the supply chain constraints for server infrastructure.” Nokia’s Core Software sales fell 13%, a soft patch inside the carrier-facing business that data center growth has to keep covering.

Several weak spots in the quarter also stand out for Nokia. The company booked $401.01 million in restructuring charges, and its free cash flow fell to negative $111.2 million. Management lowered Nokia’s free cash flow conversion target to 35% to 55% of comparable operating profit, citing an extra 400 million euros of working capital to secure supply and support 2027 growth.

Separately, Nokia raised its restructuring charge outlook to 1,100 million euros. On the brighter side, the company held its full-year comparable operating profit outlook at 2.1 billion to 2.6 billion euros and expects to finish above the midpoint. Those moves leave the profit outlook intact while cash generation falls behind the earnings recovery.

Nokia’s Data Center Push Faces Its Next Test
The next test for Nokia is whether data center orders keep offsetting slower carrier spending. Guidance from Nokia calls for Q4 2026 net sales to rise 20% to 24% from Q3, and the company expects its combined Optical and IP Networks businesses to grow 25% to 30% in 2027. Delivering on that ramp depends on converting more of the data center backlog into shipments while memory chips and other components stay scarce and expensive.

A dividend of $0.0337 per Nokia American depositary receipt goes to holders of record on October 27, with payment set for November 5. Nokia’s Q4 results will show whether that guided ramp holds up as AI stocks face broader selling, and investors should consider keeping their position sizes modest until the selling in Nokia stock subsides.

Contact [email protected] for any questions or corrections.

Sales in network infrastructure—the unit that houses AI and data-center networking technology—rose 17% on year, driven by demand from AI and cloud customers in the Americas.

Nvidia invested in Finnish telecom Nokia last year as it looks to build out connectivity technology for AI.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Nokia shares surged on AI infrastructure excitement, then quietly started giving back those gains.

Nokia heads into Q3 earnings with AI-driven growth opportunities, rising cloud revenue and new 5G initiatives, but competition and restructuring costs remain concerns.

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The tech industry would build data centers twice as fast without the supply constraints they face, the CEO of Nokia told CNBC, underscoring continued demand for AI even as top executives debate slowing down the pace of development.

"I don't think you can say in any manner we're overbuilding today because reality is that if we could build 2x faster, our customers could build 2x faster, they probably would," Justin Hotard told CNBC's "The Tech Download" podcast.

"So that gives me confidence that we're still in the early days" of the AI buildout, Hotard added.

Shortages of key memory chips and energy are among the supply constraints facing the sector.

Nokia, one of the world's biggest telecommunications equipment makers, has pivoted to become a key player within the AI infrastructure space. It sells the technology required to connect racks of chips within data centers as well as technology that interconnects data centers across different locations.

Nokia's growing role as a "picks and shovels" player in the AI boom appears to have won over investors, with the stock up around 130% over the past year.

Nokia 1-year stock chart.

But there's been continued debate over whether the industry is building data centers too fast and whether demand will be there to sustain it.

Investments in the AI buildout from data centers to chips and related infrastructure will total $10.3 trillion from 2025 to 2032 — an average of 3.63% of U.S. gross domestic product per year, according to research presented at the Brookings Papers on Economic Activity.

Companies are using debt, joint ventures and other complex financing mechanisms to raise investment for these projects, which depend on sustained demand for AI services over the long term.

Concerns about the pace of the AI buildout were exacerbated by safety worries sparked by an Anthropic researcher's warnings on the existential threat of the technology, which prompted the company's CEO Dario Amodei to call for a slowdown in the development of the most advanced models.

That sparked a knee-jerk sell off in AI-related stocks last month.

Hotard said that demand for AI is not just predicated on frontier labs like Anthropic and OpenAI releasing new models.

"I think the reality is that we're even where we are today is so early in the deployment, and the power of these models is so massive that there's a lot of there's a lot of demand to run in just deploying," Hotard said.

"Even if we didn't have another frontier model released in the next three years, we could probably make tremendous progress just deploying the technology that's there today."

Read more data center newsAmerica’s data center fight is a preview of what’s to come for the rest of the worldSpaceX launches Google AI chips into orbit in push toward space-based data centersAI data centers are transforming rural land markets — and fueling a backlashNvidia plays matchmaker in Nordics, sources tell CNBC, as AI data center deals boom in regionAnthropic and OpenAI hunt for smaller data center deals, sources tell CNBC, in race to deploy AI capacityBill to curb AI data center utility costs hits snag in SenateThe AI boom is colliding with a new threat: Severe weatherDigital Realty falls 5% after taking $3.5 billion stake in Blackstone’s Virginia data centersAnthropic’s latest hiring spree reveals where it’s building AI data centers nextNo one wants AI data centers on Earth. Do they make sense in space?Why AI demand is pushing data centers to the edge of EuropeDenmark faces data center reckoning as power grid overwhelmed by surging demandMajor data center company pauses investment decisions in Middle East amid Iran war, CEO tells CNBCAnthropic looks to hire six-figure role for negotiating data center deals to fuel Europe AI expansionAI data center boom ‘stress tests’ insurers as private capital floods inData center expansion reaches an ‘inflection point’How the AI debt binge shattered hyperscalers’ ‘unspoken contract’ with investorsPowering AI: Europe switches on its first microgrid-connected data centerHow the red-hot AI data center boom is igniting demand for a new, lucrative career path: Trade workersDust to data centers: The year AI tech giants, and billions in debt, began remaking the American landscapeQuantum’s big leap puts data centers in the spotlightData center deals hit record $61 billion in 2025 amid construction frenzy

Nokia Oyj (NYSE:NOK) shares traded higher Thursday after the company announced a satellite communications partnership with ICEYE, a European satellite company focused on sovereign intelligence from space.

• Nokia stock is gaining positive traction. Why is NOK stock trading higher?

Nokia, ICEYE Target Secure Satellite NetworksNokia and ICEYE will jointly develop secure broadband low-Earth-orbit satellite systems for defense, border security, emergency services and disaster response.

The systems will give participating nations ownership and control of satellites, ground infrastructure and terminals, with the first launches expected in 2028.

ICEYE will contribute sovereign satellite capabilities, while Nokia will provide secure networking and defense expertise. The systems are designed to complement existing military and commercial networks when terrestrial infrastructure is disrupted.

Nokia Expands Defense Connectivity PushThe ICEYE agreement extends Nokia’s defense communications strategy into satellite connectivity.

In September, Nokia Defense partnered with C3IA on secure communications, private 4G/5G and command-and-control capabilities for U.K. defense operations.

Nokia also launched Cognitive Operations, a field-deployable platform combining mission-critical communications, edge computing and AI for defense and public-safety applications.

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Nokia Technical OutlookNokia remains above its 200-day SMA of $9.99 and near its 50-day SMA of $10.05, supporting the longer-term trend.

However, shares trade 1.2% below the 20-day SMA of $10.40 and 13.1% below the 100-day SMA of $11.81, leaving near-term resistance overhead.

RSI stands at 48.83, a neutral reading that suggests balanced momentum.

The broader setup remains constructive, with the 20-day SMA above the 50-day SMA and the 50-day SMA above the 200-day SMA following an October 2025 golden cross.

Key resistance sits near $11, while key support is around $9.50.

Earnings and Analyst OutlookNokia is scheduled to report earnings on Oct. 22, 2026.

Wall Street expects EPS of eight cents, up from seven cents a year earlier, on revenue of $5.80 billion versus $5.64 billion.

The stock carries a Buy consensus rating with a consensus price target of $11.

B. Riley Securities initiated coverage with a Buy rating and $15 target on Sept. 17 and Rosenblatt initiated with Buy and a $15 target on Sept. 15.

JPMorgan maintained an Overweight rating and raised its target to $21 on June 12.

NOK Stock Price Activity: Nokia shares were up 0.89% at $10.24 at the time of publication on Thursday, according to Benzinga Pro data.

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Photo: Igal Vaisman / Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Nokia has survived more near-death experiences than almost any company in tech history, and now it sits at the crossroads of AI infrastructure and global telecom. Whether its latest reinvention actually sticks is a far more complicated story than the…

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NOKIA This year marks 161 years since the foundation of the Finnish technological giant NOKIA. The company started as a simple wood pulp mill, and diversified to produce industrial goods. In the 60s, the company started researching electronics. By the early 90s it had refocused its business on telecommunications, divesting its rubber, cable and consumer electronics units. The first GSM network call was performed in 1991 over NOKIA’s infrastructure. By the mid-2000s the company had become the world’s best selling phone brand, shipping more than 250M units a year. At its peak in 2000, Nokia reached a market value of around €200B and represented nearly 70% of the Finnish stock market.

After the popularization of the iPhone and the smartphone transition that followed, NOKIA lost its dominance. By 2014 the company lost 90% of its peak market value and sold its phone division to Microsoft. The company then focused its business as a B2B network and telecom infrastructure provider. Base stations, also known as RAN, became its main business.

Mandatory shift In 2024 the company announced the acquisition of Infinera, closed in February 2025, implying a major shift to NOKIA’s business model. The acquisition closed a gap for NOKIA as a missing piece for the networking company. Infinera’s manufacturing expertise in photonic integrated circuits and its vertical integration were key for NOKIA’s development of the DSPs and optical engines used for datacenter interconnects, in ranges from a few kilometers to thousands of kilometers.

Today the company is a communications powerhouse, covering both telecom and data center business. In addition, the company’s revenue stream comes from product sales and patents. NOKIA is modernizing its product catalogue and increasing the industries it serves. Military applications and robotics are both more relevant for the company’s future. NOKIA occupies a strategic position as the link between data center infrastructure and telecom networks. That role should grow in importance as edge computing and physical AI become more relevant.

Quick facts NOKIA is a networking powerhouse, with presence in all segments related to information transportation. Radio networks, optical and IP are the most important.

In radio access networks (RAN), NOKIA ranks third worldwide by revenue, behind Huawei and Ericsson and ahead of ZTE and Samsung. The top five suppliers accounted for 96 percent of revenue, and Huawei and Ericsson alone hold nearly two-thirds. In addition, the RAN market itself has stagnated. It is not expected to increase significantly before the 6G rollout begins around late 2028 or 2029.

Optical is where NOKIA is gaining ground. For the four quarters ending in Q2 2026, the top optical transport vendors were Huawei, Ciena, NOKIA, and Cisco. Ciena and NOKIA are the leading suppliers of disaggregated WDM optical line systems, a segment that grew 80 percent year over year. The optical transport market is forecast to grow 16 percent in 2026, surpassing $18 billion for the first time since 2000, driven by AI data centers.

In IP routing, NOKIA competes mainly with Cisco and Huawei. Across the broader telecom equipment market, Huawei and Cisco gained share in the first half of 2026, while  NOKIA’s combined share fell.

Smaller than it was in 2022 As for size and profitability, NOKIA is a roughly €20 billion revenue company with around 78,000 employees. It typically runs a comparable operating margin between 10 and 13 percent, which translates into €2.0 billion of comparable operating profit in 2025 at a 10.2 percent margin. Net sales peaked at €24.9 billion in 2022, then fell to €22.3 billion in 2023 and €19.2 billion in 2024, before recovering 3 percent to €19.9 billion in 2025. In other words, four years into the ChatGPT era, NOKIA is still a smaller company than it was when the AI boom started, although, as explored in this article, the balance may be shifting.

Products Under CEO Justin Hotard, who took over in April 2025, the company has repositioned itself around AI infrastructure. The acquisition of Infinera positions NOKIA as a vertically integrated indium phosphide photonics player. It increases its presence across communication infrastructure, whether based on radio or photonics technologies.

NOKIA foresees the importance of photonics as part of its portfolio. The company already has a photonics manufacturing site in San Jose, inherited from the Infinera acquisition. And a second fab is scheduled to begin production toward the end of 2026. To increase capacity further, NOKIA is expanding its advanced test and packaging operations in Pennsylvania tenfold starting in Q3 2026, and has agreed to acquire NXP’s Chandler semiconductor site in Arizona, which it will convert to indium phosphide production.

Optical Solutions Infinera originally produced photonic integrated circuits (PIC) used mainly for optical transport and networking systems over fiber optics. The company also integrated technologies such as DSPs, coherent optics and optical engines.

NOKIA’s integration with Infinera has led to the development of optical engines as one of its most important products. Optical engines are highly integrated solutions that combine multiple optical functions onto a single monolithic semiconductor chip. These product lines enable high-speed data transmission in optical communication systems. In fact, NOKIA’s ICE7 solution enables the delivery of 800G services over distances of up to 3000 km, essential for data center interconnect. Moreover, NOKIA’s products can operate at up to 1.2 Tb/s per wavelength, enabling power efficient, high-bandwidth, low-latency data transmission. The company sells integrated solutions in both software and hardware.

During Q2 2026, optical networking represented 18% of net sales, around €868M. The segment is expanding quickly, at around 20% per year.

IP routing As a networking juggernaut, NOKIA’s portfolio also includes a full range of IP solutions. It has a presence in the whole networking ecosystem, whether mobile, fixed or transport networks.

Its portfolio is so broad that it is difficult to describe the company’s products without going into specific examples. In IP routing alone, the company has the 7750 service router family, used as a datacenter gateway. These are essential for multi-ISP connections and CDN interconnection among IP networks.

Traditional data centers and hyperscalers rely on the physical infrastructure NOKIA provides, and NOKIA designs the critical components inside its optical and networking solutions. For instance, the FP5 networking processor is the backbone of most of their routing platforms. It is a fully programmable routing silicon chip whose programmable logic can adapt to future IP needs as networking services evolve, traffic bursts, or security requirements change. NOKIA’s products are not limited to hardware, but extend to fully integrated systems. Again in routing, the 7750 Service Router ships with the company’s custom operating system for service routing, SR OS.

During Q2 2026, IP Networks represented 14% of net sales, around €679M. The segment is expanding quickly, at around 16% per year.

Radio Networking Radio Networks is NOKIA’s base station business. The company became the infrastructure leader after it exited phones. It also covers the transport layer that connects those base stations back into the network. As the need for higher speed and seamless connection grows in ever denser urban environments, where billions of mobile devices need access to the internet, it becomes imperative for networking companies to develop solutions in the microwave physical transport layer. The company estimates that by 2034 traffic will be three times higher, driven by AI traffic, immersive experiences and industrial operations. NOKIA’s answer is the Wavence portfolio, which broadens the company’s microwave transport solutions. Wavence covers ultra-broadband transceivers, microwave service switches and advanced antennas such as the UBT-m XP.

During Q2 2026, Radio Networks represented 37% of net sales, around €1,765M. The segment is growing slowly, at around 7% per year.

AI-RAN and future tailwinds in radio networking In October 2025, NVIDIA and NOKIA announced a partnership to jointly develop AI native radio access network (AI-RAN) products. The alliance expects traditional RAN networks to become software centric, in contrast to the traditional hardware centric approach, which relies mainly on specialized chips known as ASICs to deliver telecommunications.

AI-RAN would allow the same hardware to adopt future standards, starting with 5G and continuing into 6G, with the advantage of delivering updates as needed. On the technical side, AI-RAN incorporates high performance computing, which in NOKIA’s case is expected to use NVIDIA’s GPUs. The GPUs are expected to perform networking operations such as routing, with the spare compute capacity used for inference. Paraphrasing Ronnie Vasishta, senior vice president of telecom at NVIDIA , NOKIA brings its radio communications expertise and market share, while NVIDIA provides its accelerated computing ecosystem. This paradigm change is also expected to affect the business side of the equation, bringing extra revenue to telecom providers, who could essentially rent inference capacity to edge devices such as mobile phones or robotic platforms. The alliance is promising, and NVIDIA has already invested $1B in NOKIA.

AI-RAN is still in a validation phase, but several telecom operators are already showing interest. T-Mobile, Indosat and Elisa have expressed it, and Elisa has already shown a first proof of concept.

AI-RAN economics To go deeper into AI-RAN, it is essential to consider current token usage. Due to the rise of agentic workloads, token consumption has grown exponentially. Current estimates cite around 100 trillion tokens consumed worldwide per day and still accelerating. With that in mind, having spare inference capability is beneficial both for consumers and telecom providers.

SoftBank estimates that a single GB200-NVL2 based AI-RAN base station has capacity for 25,000 tokens per second, with up to $20 per hour of monetizable compute per server, or around $15K per month. Telecom providers could therefore increase their revenue with AI-RAN.

Beyond monetization, the platform promises a step change in capacity. NOKIA targets more than 100% spectral efficiency gains by 2028, meaning roughly twice as many devices on the same physical link. Moreover, as AI-RAN moves from ASIC based radios to general purpose computing, operators upgrade base stations in software rather than hardware, breaking with tradition.

Telecom is not the only beneficiary of AI-RAN. For NVIDIA, its adoption is critical to its vision of the Omniverse, where every physical system has a digital twin, which in turn allows for optimization of those systems and a more efficient world overall. The constant observability, communication and bandwidth that AI-RAN enables are essential to that vision.

Current financial status and what to expect as drivers manifest NOKIA’s Q2 2026 results show the AI thesis is already in the numbers. Net sales grew 9% in constant currency to €4.8 billion, with comparable operating margin up 70 basis points to 9.0%. Sales to AI & Cloud customers grew 105%, and order intake from that group hit €2.8 billion, nearly triple Q1. Optical Networks (+20%) and IP Networks (+16%) led the growth, while patent licensing added 15%.

The weak spot was cash. Free cash flow was negative by nearly €0.7 billion, mainly due to higher working capital. While accelerated restructuring and the expansion of manufacturing capacity pushed reported operating profit into a loss.

Management kept its 2026 guidance of €2.1 to €2.6 billion in comparable operating profit, with most of the upside expected in Q4, and says supply, not demand, is its main constraint.

Conclusions NOKIA has adapted before, going from a wood pulp mill to the biggest cellphone manufacturer on the planet, and from that collapse to a B2B infrastructure provider. Today it is doing it again, this time around networking. From radio to optical, photonic and IP, NOKIA delivers end to end networking that telecom operators and data centers depend on.

Growth remains available to the company, because networking is as vital as raw compute power in the AI era. As both inference usage and the number of connected devices increase exponentially, innovations at the link layer become essential. By 2034 the mobile traffic is expected to grow 200% therefore advances in that area are essential for the industry. This same argument has been recognized by NVIDIA, and technologies like AI-RAN, jointly developed with NOKIA, allow NVIDIA to keep thriving, especially with the upcoming wave of digital twins and physical AI, where inference as close to the source as possible is key.

The caveat is that none of this is yet visible at the group level. NOKIA is still smaller than it was in 2022, its cash flow turned negative in the last quarter, and its most profitable business, mobile, is also its slowest growing one. The growth is real, but it is concentrated in optical and IP, and it is still offsetting decline elsewhere rather than adding on top of it.

Nonetheless, I believe that NOKIA holds a strong position to keep growing and become a key player in the AI era. Today IP routing and optical solutions are the main drivers of growth, pulled by data center infrastructure demand. In the future, as operators begin monetizing inference at the edge, AI-RAN could turn the company’s largest and slowest business into a revenue driver of its own.

Contact [email protected] for any questions or corrections.

Nokia is attractively valued back at $10 as AI & Cloud orders surge, positioning the company for strong future growth. The telecom equipment company reported Q2'26 saw AI & Cloud revenues grow 105% to €446 million, with €2.8 billion in orders, signaling robust demand for optical networking. Nokia indicated only half of Q2's AI & Cloud orders are expected to convert to revenue within 12 months, indicating a long-term growth runway.

CEO of Nokia, Justin Hotard discusses the company's focus on AI, recently agreed partnerships and their broader growth strategy.

Jim Cramer just called Nokia a strong buy, which would be great news except for one uncomfortable fact that long-suffering NOK shareholders know all too well about his track record.

Long-suffering Nokia shareholders finally got the CNBC blessing this week. On the September 16 Lightning Round of Mad Money, Jim Cramer told a caller asking about Nokia (NYSE:NOK | NOK Price Prediction) that “I like Nokia very much… I think it’s a terrific situation and I would be a buyer right here, right now.” The endorsement came a day before Nokia disclosed an expanded partnership with Microsoft (NASDAQ:MSFT) to launch an AI-powered telecom network automation platform integrating Nokia Data Suite with Microsoft Fabric, sending shares up 3.8% intraday Thursday.

Here is why some Nokia holders may cringe at the timing. A cottage industry of “Inverse Cramer” strategies has grown up around the premise that fading his calls beats following them. Quiver Quantitative runs an Inverse Cramer portfolio, and the popular CramerTracker account on X recently circulated three-year performance numbers claiming the inverse strategy returned 171.6% versus 146.6% for a Nancy Pelosi tracker. One viral post joked that “Inverse Cramer being autopilot’s best performing fund will never not be hilarious.”

Rally Already Baked In? Nokia has moved well beyond its sleepy value-trap reputation. The ADR is up 132.81% over the past 12 months and 65.14% year to date, trading around $10.53 after touching a 52-week high of $17.36. Market capitalization now sits near $58.95 billion. That rally reflects a genuine business inflection under CEO Justin Hotard, who has retooled the Finnish equipment maker around what he calls the AI supercycle.

The Q2 2026 report on July 23 gave the bulls their ammunition. Revenue of $5.49 billion beat estimates by 13.79% and EPS of $0.0799 beat the $0.0682 consensus. Most striking, AI and Cloud customer revenue more than doubled year over year to $508.96 million, with order intake of EUR 2.8 billion in the segment. Optical Networks grew 19% and IP Networks grew 15% on a constant currency basis. Details are in the 6-K filing.

Hotard told analysts on the call, “If there was more supply, I think we’d probably generate more revenue,” underscoring that supply capacity is the binding constraint. Nokia is addressing that by acquiring NXP’s Chandler, Arizona semiconductor fabrication campus for Indium Phosphide production, ramping a new San Jose optical fab in Q4, and boosting Pennsylvania test capacity tenfold.

Valuation and the Numbers Cramer Skipped Nokia carries a trailing P/E of 70 and a forward P/E of 22, with a PEG of 0.818 and an analyst consensus target of $14.96. Wall Street sentiment is mixed: four strong buys, four buys, two holds, and one strong sell.

The complicating footnotes matter. Reported Q2 operating income was a loss of $57 million after $445.05 million in accelerated restructuring charges. Free cash flow ran negative $835 million, and net income dropped 94.44% year over year. Management expects EUR 800 million in total restructuring charges in 2026 as it integrates its China operations and simplifies its European footprint.

What to Watch Next The Microsoft news reported by Barron’s and the WSJ Thursday morning extends a strategic pattern that includes the prior Nscale networking partnership and a patent agreement with Amazon. AI-RAN pilots are on track to begin at year-end, with commercial availability in 2027. For Q3, Nokia guided sequential net sales growth of 3% to 7%. Cramer’s viewers should watch order conversion. Management expects about half of AI and Cloud orders to convert to revenue within twelve months. Whether the Inverse Cramer crowd or the CNBC faithful ends up looking smart on NOK will hinge on that conversion metric.

Contact [email protected] for any questions or corrections.

Nokia is rated Buy, driven by robust AI and cloud infrastructure demand, expanding capacity, and strong order momentum. NOK's Network Infrastructure growth, margin expansion, and successful cost-cutting initiatives underpin expectations for solid EPS growth and further stock upside. Valuation at 19.89x FY27 P/E is reasonable versus peers, reflecting improved earnings quality and sector positioning.

U.S.-listed Nokia shares rise after the company announces it has extended its relationship with Microsoft to advanced AI operations for telecom providers.

On September 16, 2026, Nokia Oyj NOK shares rose 3.0%, bringing the current price to $10.14. The stock has fluctuated significantly over the past year, with a 52-week high of $17.45 and a low of $4.53.

GF Value™ verdict: Shares are currently priced at $10.14, which is 93.5% above the GF Value™ estimate of $5.24, indicating significant overvaluation.GF Score™: 63/100, categorizing Nokia as above average in terms of overall stock performance.Most notable signal: No insider transactions have occurred in the past 12 months, indicating a lack of insider confidence in the stock's near-term movement.Is NOK Overvalued or Undervalued?Nokia Oyj's current price of $10.14 is substantially higher than the GuruFocus GF Value™ estimate of $5.24, suggesting that the stock is overvalued by approximately 93.5%. The GF Value™ is GuruFocus' proprietary intrinsic-value estimate, which is calculated using historical trading multiples, past business growth, and projected future performance. This significant discrepancy raises concerns for potential investors as they face a considerable margin of safety risk. Investing at such inflated valuations may lead to losses if the stock price corrects to align more closely with its intrinsic value.

The GF Valuation label categorizes NOK as significantly overvalued, which is further supported by its high current P/E ratio relative to historical norms. This overvaluation could deter value-oriented investors who typically seek stocks that trade below their estimated intrinsic value.

How Does NOK's Valuation Compare to Its History?MetricCurrentHistoricalP/E (TTM)69.9x20.9x (5-Year Median)Forward P/E20.5x-Nokia's current P/E ratio of 69.9x is significantly above its 5-year median P/E of 20.9x, indicating that the stock is trading at a valuation that is 235% higher than its historical average. This analysis aligns with the GF Value™ verdict, reinforcing the view that NOK is overvalued relative to its historical valuation metrics.

What Does NOK's GF Score™ Tell Us?The GF Score™ assesses the overall quality and performance potential of a stock based on several key factors. Nokia's current GF Score™ of 63/100 indicates it is performing above average compared to its peers. However, the score reveals notable discrepancies across different sub-ranks.

MetricRatingGF Score™63Financial Strength8/10Profitability5/10Growth5/10Valuation1/10Momentum6/10Nokia's strongest area is its financial strength, rated 8/10, suggesting a solid balance sheet and liquidity position. However, its valuation rank is noticeably weak at 1/10, reflecting the significant overvaluation indicated by the GF Value™ estimate. The company’s profitability and growth ranks are average, suggesting limited short-term growth potential despite a stable financial foundation.

What Are Gurus and Insiders Doing with NOK?Currently, seven gurus hold Nokia stock, with one adding to their position and seven trimming their holdings in recent quarters. This mixed activity may suggest a cautious outlook among institutional investors. The lack of significant insider transactions in the past 12 months further emphasizes a potential lack of confidence in the stock's near-term performance, which could influence retail investors' decisions.

The trimming of positions by multiple gurus, coupled with the absence of insider buying, indicates a preference for caution, leading to speculation that these investors may be anticipating a correction in the stock's price. This pattern suggests a need for potential investors to consider the market sentiment before making investment decisions.

What This Means for InvestorsBased on the GF Value™ estimate, Nokia Oyj NOK is assessed as significantly overvalued. With a current price of $10.14 substantially exceeding its intrinsic value of $5.24, potential investors should exercise caution. The stock presents considerable risk, particularly given its high valuation compared to historical performance metrics. For more detailed information, visit the Nokia Oyj (NOK) stock page and explore the GF Value™ page for further insights.

Frequently Asked QuestionsWhat is NOK's GF Score™?

NOK's GF Score™ is 63/100, indicating above-average performance relative to its peers in various metrics.

Is NOK overvalued or undervalued?

NOK is considered significantly overvalued, with its current price of $10.14 being 93.5% above the GF Value™ estimate of $5.24.

What is NOK's P/E ratio?

NOK's P/E (TTM) ratio is 69.9x, which is substantially higher than its 5-year median P/E of 20.9x, indicating a significant overvaluation of the stock.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.

Cantor Fitzgerald analyst Mason Marion initiated coverage on Autodesk Inc (NASDAQ:ADSK) with a Neutral rating and announced a price target of $215. Autodesk closed at $228.93 on Monday. See how other analysts view this stock. Stifel analyst W. Andrew Carter initiated coverage on Installed Building Products Inc (NYSE:IBP) with a Buy rating and announced a price target of $240. Installed Building shares closed at $200.30 on Monday. See how other analysts view this stock. Cantor Fitzgerald analyst Mason Marion initiated coverage on Samsara Inc (NYSE:IOT) with an Overweight rating and announced a price target of $45. Samsara closed at $42.91 on Monday. See how other analysts view this stock. Rosenblatt analyst Mike Genovese initiated coverage on Nokia Oyj (NYSE:NOK) with a Buy rating and announced a price target of $15. Nokia shares closed at $9.65 on Monday. See how other analysts view this stock. Stephens & Co. analyst Todd Weller initiated coverage on Netskope Inc (NASDAQ:NTSK) with an Overweight rating and announced a price target of $21. Netskope closed at $17.00 on Monday. See how other analysts view this stock. Considering buying NOK stock? Here’s what analysts think:

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MALVERN, Pa. & ESPOO, Finland--(BUSINESS WIRE)-- #AutonomousOperations--Rajant and Nokia unite Kinetic Mesh, distributed edge AI and Cognitive Operations for resilient, intelligent mission-critical operations at the edge.

NOK weekly chart shows recovery from 50-week moving average. Source: TradingView Buyers Reclaim Moving Averages The reclaim of the 50-day moving average shows a change in character, as buyers continue to regain control following the sharp bearish correction to a low of $8.37 in late-July. Although the 200-day moving average failed to hold as support for a few days, it was quickly reclaimed and confirmed as support several times thereafter. Most recently, Friday’s higher swing low of $9.54 was a clear test.

Weekly Hammer Confirms Bias On the weekly chart, a bullish weekly reversal of a hammer candlestick pattern from last week triggered on a move above $10.28. This adds to the bullish technical evidence suggesting higher prices for NOK.

ABCD Projects Next Stops The 50% retracement of the prior decline is at $12.91, while a 61.8% Fibonacci retracement lies at $13.98. Both levels identify potential upside targets, however, when adding a rising ABCD pattern onto the chart, a lower initial target level of $12.30 is indicated. That is where there is symmetry in price between the second and first legs up from the July bottom. Those measured objectives close the same loop that opened with the July higher low, the $9.54 swing low this week, and Tuesday’s channel breakout: the developing advance now has defined next stops if the second leg holds.

Key Takeaways Nokia's new Saudi R&D center will develop AI-powered automation and orchestration software.The facility will focus on autonomous network technologies that improve efficiency and reduce energy use.NOK will support AI-native 6G research while creating engineering, training and certification opportunities. Nokia Corporation (NOK - Free Report) has opened a new research and development center in Riyadh, Saudi Arabia, strengthening its footprint in artificial intelligence (AI)-powered network automation and orchestration. The company will develop advanced software solutions for communications service providers and enterprises in both local and global markets.

Nokia's latest facility will focus on technologies such as Service Management and Orchestration, Self-Organizing Networks, Autopilot and rApps. These solutions are designed to help communications networks become more autonomous by enabling them to self-configure, self-heal and optimize performance while improving operational efficiency and reducing energy consumption.

The investment will support research into AI-native 6G technologies and contribute to the development of next-generation communications infrastructure. It will also strengthen local technology and software expertise by creating high-value engineering and research opportunities and offering training programs, boot camps and certifications in AI and automation.

By developing innovative software in Saudi Arabia for deployment across its global customer base, Nokia aims to expand its technology portfolio and create exportable “Made in Saudi” solutions. The initiative is likely to enhance the company’s research capabilities in AI, automation and advanced communications networks.

How Are Competitors Performing in the AI Space?Nokia faces stiff competition from Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . Ericsson is advancing its AI strategy with AI-powered RAN solutions to improve network performance, automation and energy efficiency. The company is developing AI-ready infrastructure and working with partners on AI applications for 5G and 6G networks. Ericsson is integrating AI into its network platforms to help operators manage traffic and automate operations more efficiently.

Cisco is expanding its AI strategy by developing secure AI infrastructure and networking solutions for large-scale AI workloads. The company is advancing agentic AI tools to automate and simplify network, security and IT operations. Cisco expanded its Secure AI Factory with NVIDIA to meet growing demand for AI computing and data center infrastructure.

NOK’s Price Performance, Valuation & EstimatesNokia shares have soared 126.7% over the past year compared with the industry’s 25.1% growth.

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From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.27, below the industry tally of 4.86.

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Earnings estimates for 2026 have decreased 2.5% to 39 cents over the past 60 days, while those for 2027 have remained static at 50 cents.

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Nokia currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Nokia's AI & Cloud sales more than doubled in Q2 2026, with order intake reaching 2.8 billion euros.Nokia is expanding optical capacity and advancing AI-RAN to capture rising AI and cloud infrastructure demand.Nokia faces near-term pressure from restructuring charges, stiff competition and negative free cash flow. Nokia Corporation (NOK - Free Report) shares have surged 135.8% in the past year compared with the industry’s growth of 26.4%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.

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The company has outperformed its peers like Arista Networks, Inc. (ANET - Free Report) and Ericsson (ERIC - Free Report) . Shares of Ericsson have gained 27.9%, and shares of Arista have risen 40.4%.

Major Growth DriversIn the near term, one of the key growth drivers for Nokia is accelerating investment in AI and cloud infrastructure. Nokia’s AI & Cloud sales more than doubled year over year in the second quarter of 2026, representing 105% growth. AI & Cloud order intake reached €2.8 billion. It is to be noted that the demand was not confined to a particular product category. The company secured long-term orders across both Optical Networks and IP Networks.

Nokia’s optical portfolio supports applications spanning from metro and regional networks to long-haul connectivity and data-center interconnects. Rising bandwidth requirements of AI workloads, cloud computing and data-center interconnectivity is propelling sales in the Optical Networks business. Nokia is also expanding optical manufacturing capacity in the United States. Its San Jose facility is expected to begin ramping production toward the end of 2026. Such initiatives to support increasing demand are positive.

IP Networks is another important growth contributor. Stronger demand for IP routing and data-center switching is driving net sales in this vertical.

Nokia’s development of AI-RAN provides a longer-term growth opportunity. The company has already launched the industry’s first commercial AI-RAN platform during the quarter. The leading-edge tech is designed to increase network capacity using existing spectrum. It also allows radio networks to evolve through software rather than requiring frequent hardware replacements.

It is evident from its recent strategy that Nokia is expanding beyond traditional connectivity hardware by incorporating AI into network operations. The company is collaborating with Google Cloud to introduce AI agents for autonomous networks. Nokia is partnering with Vodafone to develop AI-powered network slicing that can dynamically allocate network resources. Such strategic collaboration with industry leaders bodes well for sustainable growth.

Key ChallengesNokia’s strategy of pivoting toward higher-growth businesses is creating significant near-term financial pressure. The company recorded €390 million of restructuring and associated charges in the second quarter of 2026. This is weighing on operating profit. Nokia’s AI and optical infrastructure expansion requires substantial capital investment.

Free cash flow was negative €732 million in the second quarter, while net working-capital outflows were approximately €1.15 billion. Continued investment in optical manufacturing capacity may bring long-term benefits but will likely impact free cash flow in the near term.
Nokia continues to compete in highly competitive telecommunications equipment markets where pricing, technology differentiation and customer procurement decisions influence contract awards and long-term profitability. In data-center and IP networking, Arista Networks brings strong competition, while Ericsson remains a major rival in mobile infrastructure.

The company remains exposed to the cyclical nature of telecommunications infrastructure spending, which can create uneven revenue and profitability across investment cycles. While AI and cloud demand is supporting Optical Networks and IP Networks, carrier spending remains mixed across regions and business lines.

Estimate Revision TrendThe company’s earnings estimates for 2026 have declined, and 2027 have improved over the past 60 days.

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Key Valuation Metric of NOKFrom a valuation standpoint, NOK is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 21.96 forward earnings, lower than 30.71 for the industry and above its mean of 20.02.

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End NoteNokia's growth strategy is increasingly shifting from traditional telecom infrastructure toward AI-driven connectivity infrastructure. Strong momentum in the Optical Networks and IP Networks business is positive. Partnership with leading tech companies is boosting commercial opportunities. However, competitive market dynamics and cyclical end markets remain major concerns. Macroeconomic uncertainty remains a headwind. With a Zacks Rank #3 (Hold), Nokia appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.