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1. Company Snapshot

1.a. Company Description

Nokia Oyj provides mobile, fixed, and cloud network solutions worldwide.The company operates through four segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies.It offers products and services for radio access networks covering technologies from 2G to 5G, and microwave radio links for transport networks.


The company provides fixed networking solutions, such as fiber and copper-based access infrastructure, and cloud and virtualization services, as well as wi-fi portfolio, including mesh solutions and cloud-based controllers; IP routing solutions for IP aggregation, and edge and core applications for residential, business, mobile, and industrial services; a portfolio of optical networks comprising portfolio coherent optical transponders, optical transport network switchers, wavelength-division multiplexers, reconfigurable optical add-drop multiplexer solutions, and optical line systems for metro access and aggregation, data center interconnect, regional, and long-haul/ultra-long-haul applications; and submarine networks.In addition, it offers business applications software, cloud and cognitive services, core networks software, and enterprise solutions.Further, the company provides hardware, software, and services, as well as licensing of intellectual property, including patents, technologies, and the Nokia brand.


It serves communications service providers, webscales, hyperscalers, digital industries, and government.Nokia Oyj was founded in 1865 and is headquartered in Espoo, Finland.

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1.b. Last Insights on NOKIA

Nokia Oyj's recent momentum is driven by strategic partnerships and investments. A $1 billion equity investment from Nvidia bolstered investor confidence. The company secured a five-year contract with E.ON SE to modernize Germany's energy distribution system operators. Analysts upgraded their fair value estimate to €5.29, citing improved quarterly performance and advancements in AI and network infrastructure. Nokia's emphasis on 5G networks and AI-linked opportunities also drove growth. Additionally, the company's new strategy and long-term financial targets, announced at its Capital Markets Day, aim to position Nokia for the AI-driven transformation of networks.

1.c. Company Highlights

2. Nokia's Q3 2025: Strong Revenue Growth and Margin Expansion

Nokia's third-quarter 2025 results showed a solid performance, with net sales reaching EUR 4.9 billion, representing a 9% growth across all business groups. The company's gross margin was 39.4%, and the operating margin was 9%, translating to an operating profit of EUR 571 million. Earnings per share (EPS) came in at EUR 0.06057, beating analyst estimates of EUR 0.0495. The company's strong revenue growth was driven by its Network Infrastructure segment, which saw an 11% increase, with Optical Networks growing 19%.

Publication Date: Oct -25

📋 Highlights

Segment Performance

Nokia's Cloud and Network Services (CNS) sales grew 13%, driven by strong demand for cloud-based core platforms. The company's Mobile Networks net sales increased 4% year-on-year. The CNS segment saw a gross margin in the high 40s, driven by 5G core and market share gains. The company's IPR business, which includes non-standard essential patents, is healthy and generating stable revenue.

Cash Flow and Balance Sheet

Nokia generated EUR 429 million of free cash flow and ended the quarter with EUR 3 billion of net cash. The company's free cash flow yield is around 5.16%, indicating a decent cash generation capability. With a net debt to EBITDA ratio of -0.29, Nokia's balance sheet remains healthy.

Guidance and Outlook

Nokia reaffirmed its full-year outlook, expecting net sales growth and an operating profit between EUR 1.7 billion and EUR 2.2 billion. Analysts estimate next year's revenue growth at 4.2%. The company's guidance for operating profit is increased by EUR 0.1 billion due to the change in venture fund investments. Nokia's long-term strategy and 6G mobility investments are on track, with ongoing R&D investments and a ramp-up in the investment cycle.

Valuation

Nokia's current P/E ratio is 28.52, indicating that the stock may be slightly overvalued. However, the company's dividend yield is around 2.62%, providing a relatively stable income stream. The P/S ratio is 1.49, and the EV/EBITDA ratio is 11.65, which are reasonable given the company's growth prospects. The ROE is around 4.94%, and the ROIC is 2.89%, indicating room for improvement in terms of profitability.

3. NewsRoom

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Nvidia Faces Challenge of Deploying Rapidly Growing Cash Pile

Dec -04

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Nokia partners with Bharti Airtel to unlock 5G capabilities for developers and enterprises via network APIs

Dec -04

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Why Is Belden (BDC) Stock Soaring Today

Dec -03

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Nokia powers Dutch digital services with next-generation 800G-ready KPN core and transport network

Dec -03

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Nokia and du set new benchmark in 5G innovation with autonomous network slicing in industry first

Dec -03

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Foxconn subsidiary plans to expand production in Vietnam, document shows

Dec -03

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Is Nokia Fairly Priced After 36.2% Gain And Ongoing 5G Network Wins In 2025?

Dec -03

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Nokia Drone Networks Integrates Amprius SiCore® Batteries to Advance High-Reliability Operations

Dec -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.72%)

6. Segments

Mobile Networks

Expected Growth: None%

None

Network Infrastructure

Expected Growth: None%

None

Cloud and Network Services

Expected Growth: None%

None

Nokia Technologies

Expected Growth: None%

None

Group Common and Other

Expected Growth: None%

None

Eliminations and Unallocated Items

Expected Growth: None%

None

7. Detailed Products

5G RAN

Nokia's 5G RAN (Radio Access Network) provides a comprehensive portfolio of products and solutions for 5G network infrastructure, including base stations, small cells, and radio access controllers.

IP/Optical Networks

Nokia's IP/Optical Networks provide a range of products and solutions for building and managing IP and optical networks, including routers, switches, and optical transport systems.

Network Services

Nokia's Network Services provide a range of professional services, including network planning, implementation, and optimization, as well as managed services and network operations.

Nokia Software

Nokia Software provides a range of software products and solutions for network management, analytics, and security, including Nokia NetGuard, Nokia Impact, and Nokia AVA.

Altiplano

Altiplano is Nokia's software-defined networking (SDN) platform, providing a range of products and solutions for network automation, orchestration, and management.

Nuage Networks

Nuage Networks is Nokia's software-defined networking (SDN) solution for datacenter and cloud networks, providing a range of products and solutions for network automation and orchestration.

8. Nokia Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Nokia's products and services have substitutes in the market, but the company's strong brand image and quality of products reduce the threat of substitutes.

Bargaining Power Of Customers

Nokia's customers have some bargaining power due to the availability of substitutes, but the company's strong distribution network and customer loyalty programs reduce this power.

Bargaining Power Of Suppliers

Nokia's suppliers have some bargaining power due to the company's dependence on them for components and raw materials, but the company's large scale of operations and long-term contracts reduce this power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the telecommunications industry, including the need for significant capital investment and technological expertise.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with many established players competing for market share, which increases the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.61%
Debt Cost 7.39%
Equity Weight 82.39%
Equity Cost 7.39%
WACC 7.39%
Leverage 21.37%

11. Quality Control: Nokia Oyj passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.23$

Current Price

5.23$

Potential

-0.00%

Expected Cash-Flows