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Nokia's Q3 Earnings Beat Estimates on Healthy Top Line Growth
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Key Takeaways
Nokia posted Q3 net sales of 4.83 billion Euro, up 12% year over year, beating revenue expectations.
Network Infrastructure revenue grew 28% to 1.95 billion Euro, led by gains in optical and fixed networks.
NOK expects 2025 operating profit of 1.7 to 2.2 billion Euro and free cash flow at 50 to 80% of that range.
Nokia Corporation (NOK - Free Report) reported stronger-than-expected third-quarter 2025 results, with both top and bottom lines beating the Zacks Consensus Estimate. The company's top line increased year over year, primarily owing to growth in fixed networks and optical networks in the Network Infrastructure segment. Improvement in the Nokia Technologies, Cloud and Network services also supported the top-line growth.
NOK’s Net Income
Nokia reported a net income from continuing operations of €80 million ($93.5 million) or an income of €0.01 (a penny) per share in the third quarter compared with €145 million or €0.03 in the year-ago quarter. Higher operating expenses and higher income tax expenses impacted profits.
Comparable profit was €324 million ($378 million) or €0.06 (7 cents) per share, down from €358 million or €0.06 in the year-earlier quarter. The bottom line marginally beat the Zacks Consensus Estimate of 6 cents.
Nokia Corporation Price, Consensus and EPS Surprise
Quarterly net sales were €4.83 billion ($5.65 billion), up 12% from €4.32 billion in the year-ago quarter. Despite weakness in Mobile Networks, growth in Network Infrastructure, Nokia Technologies, Cloud Network and services supported the top line. Revenues beat the Zacks Consensus Estimate by $5.38 billion.
Net sales from Network Infrastructure totaled €1.95 billion ($2.28 billion), up from €1.52 billion in the year-ago quarter. The top line beat our revenue estimate of €1.77 billion. At cc, IP Networks recorded 4% growth year over year, owing to strength in North America, with healthy demand from AI and cloud customers. Revenues from Optical Networks improved 19% year over year on a cc basis, backed by healthy traction in the North America region. Fixed Networks witnessed an 8% rise year over year at cc, driven by growing fixed wireless access deployments in India.
Mobile Networks generated revenues of €1.84 billion ($2.153 billion), down 1% year over year on a reported basis. Net sales beat our estimate of €1.74 billion. Strength in the Middle East, Africa (“MEA”) and the APAC region supported the net sales growth.
Net sales from Cloud and Network Services were €645 million ($754 million), up 8% year over year on a reported basis and 13% on a cc basis. Growth in Core Networks primarily supported the top line in this segment. The top line in this segment missed our estimate of €700.9 million.
Nokia Technologies contributed €391 million ($457 million) compared with €352 million in the year-ago quarter. Net sales were up 14% at cc. The top line benefited from positive trends in the automotive, consumer electronics, multimedia and IoT space.
Region-wise, net sales from the EMEA region increased to €1.936 billion from €1.832 billion in the year-earlier quarter. Healthy traction in all segments except the Mobile Networks boosted net sales in this region. Revenues in the APAC region rose to €1.17 billion, up 15% at cc year over year, primarily due to growth in Network Infrastructure.
Americas witnessed 10% growth at cc to €1.71 billion. Strong growth in the Network Infrastructure segment and the Cloud and Network services segment boosted net sales.
NOK’s Other Details
In the September quarter, the comparable gross margin was 44.2% down from 45.7% in the year-ago quarter. Improvement in Cloud and Network Services was offset by the product mix of Mobile Networks and Network Infrastructure. The comparable operating profit decreased 10% year over year to €435 million ($508.4 million). Comparable operating margin declined to 9% from 11.2%.
NOK’s Cash Flow & Liquidity
In the September quarter, Nokia generated €597 million ($697 million) net cash from operating activities compared with €728 million in the prior-year quarter.
As of September 30, 2025, the company had €4.89 billion ($5.74 billion) in cash and cash equivalents, with long-term interest-bearing liabilities of €2.34 billion ($2.74 billion).
Outlook of NOK
For 2025, Nokia expects a comparable operating profit in the range of €1.7-€2.2 billion. Free cash flow is estimated at 50-80% of comparable operating profit. Capital expenditure is estimated to be €650 million.
In the last reported quarter, it delivered an earnings surprise of 82.47%. Ubiquiti spends significantly on research and development (R&D) 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 sports a Zacks Rank #1. In the last reported quarter, it delivered an earnings surprise of 5.26%.
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.
Celestica (CLS - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 12.1%. CLS delivered an earnings surprise of 7.71%, on average, in the trailing four quarters.
The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica. In addition, a diligent focus on product diversification and increasing its presence in high-value markets is a tailwind.
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Nokia's Q3 Earnings Beat Estimates on Healthy Top Line Growth
Key Takeaways
Nokia Corporation (NOK - Free Report) reported stronger-than-expected third-quarter 2025 results, with both top and bottom lines beating the Zacks Consensus Estimate. The company's top line increased year over year, primarily owing to growth in fixed networks and optical networks in the Network Infrastructure segment. Improvement in the Nokia Technologies, Cloud and Network services also supported the top-line growth.
NOK’s Net Income
Nokia reported a net income from continuing operations of €80 million ($93.5 million) or an income of €0.01 (a penny) per share in the third quarter compared with €145 million or €0.03 in the year-ago quarter. Higher operating expenses and higher income tax expenses impacted profits.
Comparable profit was €324 million ($378 million) or €0.06 (7 cents) per share, down from €358 million or €0.06 in the year-earlier quarter. The bottom line marginally beat the Zacks Consensus Estimate of 6 cents.
Nokia Corporation Price, Consensus and EPS Surprise
Nokia Corporation price-consensus-eps-surprise-chart | Nokia Corporation Quote
NOK’s Revenues
Quarterly net sales were €4.83 billion ($5.65 billion), up 12% from €4.32 billion in the year-ago quarter. Despite weakness in Mobile Networks, growth in Network Infrastructure, Nokia Technologies, Cloud Network and services supported the top line. Revenues beat the Zacks Consensus Estimate by $5.38 billion.
Net sales from Network Infrastructure totaled €1.95 billion ($2.28 billion), up from €1.52 billion in the year-ago quarter. The top line beat our revenue estimate of €1.77 billion. At cc, IP Networks recorded 4% growth year over year, owing to strength in North America, with healthy demand from AI and cloud customers. Revenues from Optical Networks improved 19% year over year on a cc basis, backed by healthy traction in the North America region. Fixed Networks witnessed an 8% rise year over year at cc, driven by growing fixed wireless access deployments in India.
Mobile Networks generated revenues of €1.84 billion ($2.153 billion), down 1% year over year on a reported basis. Net sales beat our estimate of €1.74 billion. Strength in the Middle East, Africa (“MEA”) and the APAC region supported the net sales growth.
Net sales from Cloud and Network Services were €645 million ($754 million), up 8% year over year on a reported basis and 13% on a cc basis. Growth in Core Networks primarily supported the top line in this segment. The top line in this segment missed our estimate of €700.9 million.
Nokia Technologies contributed €391 million ($457 million) compared with €352 million in the year-ago quarter. Net sales were up 14% at cc. The top line benefited from positive trends in the automotive, consumer electronics, multimedia and IoT space.
Region-wise, net sales from the EMEA region increased to €1.936 billion from €1.832 billion in the year-earlier quarter. Healthy traction in all segments except the Mobile Networks boosted net sales in this region. Revenues in the APAC region rose to €1.17 billion, up 15% at cc year over year, primarily due to growth in Network Infrastructure.
Americas witnessed 10% growth at cc to €1.71 billion. Strong growth in the Network Infrastructure segment and the Cloud and Network services segment boosted net sales.
NOK’s Other Details
In the September quarter, the comparable gross margin was 44.2% down from 45.7% in the year-ago quarter. Improvement in Cloud and Network Services was offset by the product mix of Mobile Networks and Network Infrastructure. The comparable operating profit decreased 10% year over year to €435 million ($508.4 million). Comparable operating margin declined to 9% from 11.2%.
NOK’s Cash Flow & Liquidity
In the September quarter, Nokia generated €597 million ($697 million) net cash from operating activities compared with €728 million in the prior-year quarter.
As of September 30, 2025, the company had €4.89 billion ($5.74 billion) in cash and cash equivalents, with long-term interest-bearing liabilities of €2.34 billion ($2.74 billion).
Outlook of NOK
For 2025, Nokia expects a comparable operating profit in the range of €1.7-€2.2 billion. Free cash flow is estimated at 50-80% of comparable operating profit. Capital expenditure is estimated to be €650 million.
NOK’s Zacks Rank & Stocks to Consider
Nokia currently has a Zacks Rank #2 (Buy).
Ubiquiti Inc. (UI - Free Report) sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last reported quarter, it delivered an earnings surprise of 82.47%. Ubiquiti spends significantly on research and development (R&D) 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 sports a Zacks Rank #1. In the last reported quarter, it delivered an earnings surprise of 5.26%.
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.
Celestica (CLS - Free Report) carries a Zacks Rank #2 at present. In the last reported quarter, it delivered an earnings surprise of 12.1%. CLS delivered an earnings surprise of 7.71%, on average, in the trailing four quarters.
The growing proliferation of AI-based applications and generative AI tools across industries presents a solid growth opportunity for Celestica. In addition, a diligent focus on product diversification and increasing its presence in high-value markets is a tailwind.