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Nokia Oyj

Q1 FY26Communications Equipment

Nokia Oyj Q1 FY26 Results — Earnings Call Analysis

Q1 FY26 earnings call: what management said on revenue, margins and capex.

Price₹15

Market cap₹87.7K Cr

P/E102.9

Updated29 May 2026

Read4 min read

What the Q1 FY26 call signalled

2 of 4 strong

RevenueSlow growth

MarginMargins steady

CapexCapex planned

Order bookOrder book rising

The short version

- Network Infrastructure is the primary growth engine, with expected 6% to 8% compound annual growth between 2025 and 2028 on a constant currency and portfolio basis. - Operating Profit Guidance for 2026: Nokia targets an operating profit range of EUR 2 billion to EUR 2.5 billion in 2026, continuing the momentum from 2025 where operating profit was EUR 2 billion, slightly above midpoint guidance.

From Nokia Oyj's Q1 FY26 earnings-call transcript · updated 29 May 2026.

Revenue & Sales Performance

Slow growth

Network Infrastructure is the primary growth engine, with expected 6% to 8% compound annual growth between 2025 and 2028 on a constant currency and portfolio basis.
Combined Optical and IP Networks businesses are targeted to grow 10% to 12% CAGR during the same period.
In 2026, growth rates in both segments are expected to align with these long-term targets.
Fiber OLT portfolio within Fixed Networks is expected to continue growing despite some areas being deprioritized.
Mobile Infrastructure market expected to be stable in 2026, with opportunities to capture market share and improve profitability.
Recovery expected in regions such as India, with pressure in Latin America and other areas.
AI & Cloud customer demand is increasing, contributing notably to sales, especially in Optical Networks.

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Profitability & Margins

Operating Profit Guidance for 2026: Nokia targets an operating profit range of EUR 2 billion to EUR 2.5 billion in 2026, continuing the momentum from 2025 where operating profit was EUR 2 billion, slightly above midpoint guidance.
Mobile Infrastructure Profitability: Focus on improving profitability with targeted gross margins of 48% to 50%, and operating profit at least EUR 1.5 billion, consistent with 2025 levels.
Network Infrastructure Growth: Expected compound annual growth of 6% to 8% from 2025 to 2028 in Network Infrastructure, with combined Optical and IP Networks anticipated to grow 10% to 12%.

Cost Savings and Operating Efficiency: Significant cost-cutting programs running through 2026 are expected to enhance profitability, with no major further cost-cutting programs planned beyond 2026 but continued focus on operational efficiency.
Investment in AI & Cloud: Increased investments in AI and Cloud expected to drive future revenue growth despite some impact on short-term operating expenses.

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Capital Expenditure Plans

Capex planned

Planned CapEx for 2026 is between EUR 900 million and EUR 1 billion, primarily to invest in additional manufacturing capacity for Optical Networks and some real estate renewal projects (Page 4).
Investment in a new indium phosphide fab in California, started by Infinera, coming online later in 2026 to support demand ramping mainly in 2027 (Page 12).
Capital investments are focused on scaling production capacity to meet growth opportunities in the Optical Networking segment and AI infrastructure build-out (Pages 7 and 12).
CapEx is modest relative to the broader semiconductor industry but significant for Nokia, accounting for about 5% of the company's overall CapEx (Page 12).

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Fundraising & Capital Structure

The company ended the quarter with a strong net cash position of EUR 3.4 billion.
Capital allocation priorities focus on internal R&D investment, potential M&A, dividends, and share buybacks if excess cash is available.
No new cost-cutting programs beyond 2026 are planned, implying a focus on operational efficiency rather than raising additional funds.

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Order Book & Pipeline

Order book rising

Optical and IP Networks businesses show strong order momentum, including healthy book-to-bill ratios (Page 10).
Optical Networking grew 17% in Q4, with guidance for 10%-12% growth in full-year 2026 (Page 5).
Management is balancing discipline and optimism, transitioning from a telco-centric base towards AI & Cloud-driven demand (Page 5).

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Frequently Asked Questions

What were Nokia Oyj Q1 FY26 results?

- Network Infrastructure is the primary growth engine, with expected 6% to 8% compound annual growth between 2025 and 2028 on a constant currency and portfolio basis. - Operating Profit Guidance for 2026: Nokia targets an operating profit range of EUR 2 billion to EUR 2.5 billion in 2026, continuing the momentum from 2025 where operating profit was EUR 2 billion, slightly above midpoint guidance.

What is Nokia Oyj share price analysis?

Nokia Oyj currently shows a neutral. The stock trades at a P/E of 102.9 with a market cap of $87,741. Investors should review the full earnings analysis for detailed insights.

Is Nokia Oyj planning capital expenditure?

- Planned CapEx for 2026 is between EUR 900 million and EUR 1 billion, primarily to invest in additional manufacturing capacity for Optical Networks and some real estate renewal projects (Page 4).

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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.