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NOK Gears Up to Report Q3 Earnings: Buy, Sell or Hold the Stock?
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Key Takeaways
NOK reports Q3 earnings on Oct. 22, with consensus estimates of $5.8 billion in sales and 8 cents per share.
Nokia's AI and Cloud revenues more than doubled in Q2 2026, with order intake reaching 2.8 billion.
Nokia's AI networking investments support growth, but competition and cyclical spending pose risks.
Nokia Corporation (NOK - Free Report) is scheduled to report third-quarter 2026 earnings before market open on Oct. 22. The Zacks Consensus Estimate for sales and earnings is pegged at $5.8 billion and 8 cents per share, respectively. Over the past 60 days, estimates for NOK have remained unchanged for 2026, while it has decreased 4% to 48 cents for 2027.
NOK Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise History
The leading wireless manufacturer delivered a four-quarter earnings surprise of 13.62%, on average.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Nokia for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Nokia currently has an ESP of -23.40% and carries a Zacks Rank #3.
During the quarter, Nokia strengthened its long-standing relationship with Taiwan Mobile through a new 5G agreement to accelerate the rollout of AI-powered mobile networks across Taiwan. The partnership reflects Nokia's commitment to advancing AI-enabled 5G infrastructure across the globe.
The company introduced industry’s first AI-native RAN platform, designed to transform radio networks through intelligent automation, real-time optimization, improved performance and greater energy efficiency. The platform aims to help operators build smarter, more adaptive networks for the next era of connectivity.
Nokia opened new R&D center in Saudi Arabia focused on AI-powered network automation. The center will advance innovative technologies, enhance network efficiency, support digital transformation and strengthen Nokia’s presence in Saudi Arabia’s growing telecommunications and AI ecosystem. It has also introduced industry-first initiative to help operators accelerate network innovation in the AI era. The initiative aims to simplify network development, enable faster deployment of AI-driven services, improve operational efficiency and help operators meet the evolving connectivity demands. Such innovations are expected to have a favorable impact on Nokia’s third-quarter earnings.
The company faces competition in each of its served markets. In the AI data center market, it faces competition from Arista Networks, Inc. (ANET - Free Report) , while Ericsson (ERIC - Free Report) remains a major rival in the legacy telecom space.
Price Performance
Over the past year, Nokia has surged 97.4% compared with the industry’s growth of 7.9%, outperforming its peers, ANET and ERIC. While Arista has gained 47%, Ericsson has soared 17% over this period.
Image Source: Zacks Investment Research
Key Valuation Metric
From a valuation standpoint, Nokia appears to be relatively premium than the industry but above its mean. Going by the price/earnings ratio, the company’s shares currently trade at 22.42 earnings, lower than 29.61 for the industry and higher than the stock’s mean of 21.27.
Image Source: Zacks Investment Research
Investment Consideration
Nokia’s optical and IP networking businesses are benefiting from rising investment in AI and cloud infrastructure. In the second quarter of 2026, AI and Cloud revenue more than doubled year over year, while order intake reached €2.8 billion. Nokia expects approximately half of its AI and Cloud orders to convert into revenue over the following 12 months, although supply constraints and uneven order patterns could affect the pace of growth.
The company's broad portfolio across mobile networks, optical transport, IP routing, fixed broadband, software and services provides exposure to multiple connectivity markets. Nokia also holds more than 26,000 patent families, including over 8,000 declared essential to 5G standards. Backed by this, Management expects Network Infrastructure sales to grow 12-14% in 2026, reflecting continued demand for advanced networking solutions.
However, Nokia remains exposed to the cyclical nature of telecommunications infrastructure spending, with investment patterns varying across regions and customer groups. Intense competition in networking equipment and AI infrastructure could also challenge its ability to maintain profitability. The company faces competition from Ericsson in the telecom market and Arista in the AI infrastructure space.
End Note
Nokia's investment in AI-native networking and manufacturing capacity could support its growth strategy. The company has introduced a commercial AI-RAN platform and is expanding its U.S. optical manufacturing capabilities to address anticipated demand. However, stiff competition from other established players in the AI infrastructure space could impact its growth prospects. Restructuring costs remain another concern. It is impacting margin in the short term. Hence, with a Zacks Rank 3 (Hold), Nokia is treading in the middle of the road, and new investors should remain cautious.
View the Zacks #1 Rank List
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NOK Gears Up to Report Q3 Earnings: Buy, Sell or Hold the Stock?
Key Takeaways
Nokia Corporation (NOK - Free Report) is scheduled to report third-quarter 2026 earnings before market open on Oct. 22. The Zacks Consensus Estimate for sales and earnings is pegged at $5.8 billion and 8 cents per share, respectively. Over the past 60 days, estimates for NOK have remained unchanged for 2026, while it has decreased 4% to 48 cents for 2027.
NOK Estimate Trend
Image Source: Zacks Investment Research
Earnings Surprise History
The leading wireless manufacturer delivered a four-quarter earnings surprise of 13.62%, on average.
Image Source: Zacks Investment Research
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Nokia for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Nokia currently has an ESP of -23.40% and carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping the Quarterly Performance
During the quarter, Nokia strengthened its long-standing relationship with Taiwan Mobile through a new 5G agreement to accelerate the rollout of AI-powered mobile networks across Taiwan. The partnership reflects Nokia's commitment to advancing AI-enabled 5G infrastructure across the globe.
The company introduced industry’s first AI-native RAN platform, designed to transform radio networks through intelligent automation, real-time optimization, improved performance and greater energy efficiency. The platform aims to help operators build smarter, more adaptive networks for the next era of connectivity.
Nokia opened new R&D center in Saudi Arabia focused on AI-powered network automation. The center will advance innovative technologies, enhance network efficiency, support digital transformation and strengthen Nokia’s presence in Saudi Arabia’s growing telecommunications and AI ecosystem. It has also introduced industry-first initiative to help operators accelerate network innovation in the AI era. The initiative aims to simplify network development, enable faster deployment of AI-driven services, improve operational efficiency and help operators meet the evolving connectivity demands. Such innovations are expected to have a favorable impact on Nokia’s third-quarter earnings.
The company faces competition in each of its served markets. In the AI data center market, it faces competition from Arista Networks, Inc. (ANET - Free Report) , while Ericsson (ERIC - Free Report) remains a major rival in the legacy telecom space.
Price Performance
Over the past year, Nokia has surged 97.4% compared with the industry’s growth of 7.9%, outperforming its peers, ANET and ERIC. While Arista has gained 47%, Ericsson has soared 17% over this period.
Image Source: Zacks Investment Research
Key Valuation Metric
From a valuation standpoint, Nokia appears to be relatively premium than the industry but above its mean. Going by the price/earnings ratio, the company’s shares currently trade at 22.42 earnings, lower than 29.61 for the industry and higher than the stock’s mean of 21.27.
Image Source: Zacks Investment Research
Investment Consideration
Nokia’s optical and IP networking businesses are benefiting from rising investment in AI and cloud infrastructure. In the second quarter of 2026, AI and Cloud revenue more than doubled year over year, while order intake reached €2.8 billion. Nokia expects approximately half of its AI and Cloud orders to convert into revenue over the following 12 months, although supply constraints and uneven order patterns could affect the pace of growth.
The company's broad portfolio across mobile networks, optical transport, IP routing, fixed broadband, software and services provides exposure to multiple connectivity markets. Nokia also holds more than 26,000 patent families, including over 8,000 declared essential to 5G standards. Backed by this, Management expects Network Infrastructure sales to grow 12-14% in 2026, reflecting continued demand for advanced networking solutions.
However, Nokia remains exposed to the cyclical nature of telecommunications infrastructure spending, with investment patterns varying across regions and customer groups. Intense competition in networking equipment and AI infrastructure could also challenge its ability to maintain profitability. The company faces competition from Ericsson in the telecom market and Arista in the AI infrastructure space.
End Note
Nokia's investment in AI-native networking and manufacturing capacity could support its growth strategy. The company has introduced a commercial AI-RAN platform and is expanding its U.S. optical manufacturing capabilities to address anticipated demand. However, stiff competition from other established players in the AI infrastructure space could impact its growth prospects. Restructuring costs remain another concern. It is impacting margin in the short term. Hence, with a Zacks Rank 3 (Hold), Nokia is treading in the middle of the road, and new investors should remain cautious.