Nokia Corporation has reported a 3% increase in comparable net sales for the fourth quarter of 2025, reaching EUR 6.1 billion, supported by growth in both its network infrastructure and mobile networks businesses. The company’s results align with its full-year financial targets, reflecting a year of strategic repositioning and portfolio expansion.
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Financial Overview
For the full year 2025, Nokia recorded a 2% year-on-year increase in net sales on a constant currency and portfolio basis, and 3% growth on a reported basis.
The company posted a full-year operating profit of EUR 2.0 billion, slightly exceeding the EUR 1.85 billion midpoint of its previously issued guidance.
Despite revenue growth in Q4, Nokia’s comparable operating margin declined by 90 basis points year-on-year to 17.3%, primarily due to increased investment in network infrastructure and costs associated with the integration of Infinera, which Nokia acquired to strengthen its optical networking portfolio.
Comparable gross margin expanded 90 basis points to 48.1%, supported by a strong product mix that offset a lower contribution from Nokia Technologies, while reported gross margin declined 120 basis points to 44.9% due to higher restructuring charges.
Q4 comparable diluted EPS was EUR 0.16 (reported EUR 0.10), with free cash flow of EUR 0.2 billion and a net cash balance of EUR 3.4 billion. For the full year, net sales grew 2% on a constant currency and portfolio basis (+3% reported), with comparable operating profit of EUR 2.0 billion, free cash flow of EUR 1.5 billion (72% FCF conversion), and comparable diluted EPS of EUR 0.29 (reported EUR 0.12), all within prior guidance.
Previous 2025 Results:
Nokia Projects Strong Half Year 2025 Amidst Currency Headwinds
Networks Overview
Optical networks emerged as a key growth driver, underpinned by strong demand from AI and cloud deployments, while IP networks recorded approximately 3% growth, supported by a robust Q4 2024 performance. Fixed networks remained broadly stable, as portfolio optimization actions offset growth in fiber OLT shipments. The company’s book-to-bill ratio remained well above 1, reflecting sustained momentum across both optical and IP networks. Gross margins were largely stable year-on-year, although operating margins declined as a result of continued growth-related investments and the integration of Infinera.
Cloud and network services saw a slight year-on-year decline in Q4, though full-year net sales grew 6%, driven by strong demand in core networks. Gross margin in Q4 benefited from a modest provision reversal of EUR 37 million, and even excluding this, margins improved, reflecting ongoing efforts to enhance the business’s profitability profile. Mobile networks also experienced strong year-end demand, driving 6% net sales growth in Q4, with gross margins supported by a favorable product mix, as the company continues to focus on topline stability and margin improvement. Nokia Technologies signed several deals during the quarter, with the contracted net sales run-rate remaining around EUR 1.4 billion, while Q4 operating expenses included an approximately EUR 20 million charge related to ongoing patent portfolio optimization.
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2025/2026 Outlook
Throughout 2025, Nokia undertook a major strategic repositioning to sharpen execution and focus on long-term growth opportunities, particularly as artificial intelligence reshapes network demand and infrastructure requirements. The company outlined its updated direction during its Capital Markets Day, including a plan to simplify its operating model into two core divisions—Network Infrastructure and Mobile Infrastructure—beginning in 2026.
In line with its financial performance, Nokia’s board has proposed a dividend authorization of EUR 0.14 per share.
Justin Hotard, President and CEO of Nokia, emphasized:
Looking ahead to 2026, our focus is on disciplined execution to capture growth in AI and cloud and increase efficiency, while building a high-performance culture across Team Nokia. We have fewer, clearer priorities, a simplified operating model, and a strategy we are executing with speed and accountability.
Nokia has set a 2026 comparable operating profit target of EUR 2.0—2.5 billion, signaling confidence in continued expansion across AI, cloud, and next-generation networking markets.
