Nokia (NOKIA) Q4 2025 earnings summary

Executive summary

• Q4 2025 results met expectations, with net sales up 3% to EUR 6.1 billion and strong performance in Network Infrastructure and Mobile Networks; full-year net sales reached EUR 19.9 billion and operating profit EUR 2.0 billion, slightly above guidance midpoint.

• Free cash flow conversion for the year was 72%, aligning with guidance, and net cash at year-end was EUR 3.4 billion.

• Strategic repositioning included the Infinera acquisition, partnership with NVIDIA, operating model simplification, and leadership renewal.

• Integration of Nokia Shanghai Bell completed, targeting EUR 200 million in cost synergies over 24-36 months.

• Reorganization into Network Infrastructure and Mobile Infrastructure segments effective 2026.

Financial highlights

• Q4 net sales: EUR 6.1 billion (+3% YoY); operating profit: EUR 1 billion; free cash flow: EUR 226 million; net cash at year-end: EUR 3.4 billion.

• Full-year 2025 net sales: EUR 19.9 billion; operating profit: EUR 2.0 billion; free cash flow: EUR 1.5 billion.

• Q4 gross margin: 48.1% (+90 bps YoY); operating margin: 17.3% (-90 bps YoY); Q4 comparable diluted EPS: EUR 0.16.

• Book-to-bill ratio above 1 in Optical and IP Networks.

• Q4 free cash flow: EUR 0.2 billion; EUR 0.2 billion paid in dividends.

Outlook and guidance

• 2026 comparable operating profit targeted at EUR 2.0–2.5 billion; long-term (2028) target: EUR 2.7–3.2 billion.

• Network Infrastructure net sales expected to grow at 6–8% CAGR (2025–2028); Optical and IP Networks combined to grow 10–12%.

• Network Infrastructure operating margin to expand to 13–17% by 2028 (from 9.5% in 2025); Mobile Infrastructure gross margin target for 2028 is 48–50%.

• Free cash flow conversion expected at 55–75% in 2026; CapEx planned at EUR 900–1,000 million, mainly for Optical Networks capacity.

• Board proposes EUR 0.14 per share dividend for 2025, to be paid in four installments.