Back to top

Image: Bigstock

Can NOK's Network Automation Progress With MSFT Boost Profits?

Read MoreHide Full Article

Key Takeaways

  • NOK is expanding its Microsoft partnership to advance AI-driven telecom network automation.
  • Nokia Data Suite integrates with Microsoft Fabric for unified analytics, governance and AI capabilities.
  • Autonomous Voice over New Radio assurance uses AI agents to detect anomalies and recommend corrective actions.

Nokia Corporation (NOK - Free Report) is advancing its network automation capabilities through an expanded partnership with Microsoft Corporation (MSFT - Free Report) , developing an agentic, unified data foundation to help telecom providers scale artificial intelligence (AI)-driven operations. The collaboration is designed to give operators faster access to trusted data across multi-vendor, cross-domain networks.

Under the agreement, Nokia Data Suite integrates with Microsoft Fabric, combining telco-specific data products with unified analytics, governance and AI capabilities. The platform supports cloud, hybrid and on-premises environments, enabling use cases such as automated root-cause analysis and predictive maintenance.

The company is initially applying these capabilities to autonomous Voice over New Radio assurance, where AI agents detect network anomalies, analyze service issues and recommend corrective actions. Its geo-experience technology also combines subscriber, network and radio-frequency data to identify coverage and capacity issues and provide actionable recommendations.

As demand for intelligent telecom infrastructure grows, the initiative supports Nokia’s efforts to expand its AI-enabled portfolio and meet the rising need for automated, data-driven network operations.

How Are Competitors Advancing in Network Automation?

Nokia faces competition from Ericsson (ERIC - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . Ericsson expanded its Intelligent Automation Platform to support automation across both radio and core networks. The company added real-time data-streaming capabilities to enable faster, closed-loop network operations. Ericsson is working with telecom operators on applications such as self-healing, network optimization and energy management.  

Cisco is integrating AI agents into its networking portfolio to help automate complex IT tasks. Its technology can analyze network data, identify potential problems and recommend or execute actions with less manual intervention. Cisco is extending automation across multi-vendor environments to help businesses streamline operations and improve efficiency.

NOK’s Price Performance, Valuation & Estimates

Nokia shares have soared 123.6% over the past year compared with the industry’s 20.6% growth.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation standpoint, Nokia trades at a forward price-to-sales ratio of 2.42, below the industry tally of 4.93.

Zacks Investment Research
Image Source: Zacks Investment Research

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.

Zacks Investment Research
Image Source: Zacks Investment Research

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

Published in