| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 32 | 56.1x | 17.3x | Bottom tier | |
Growth | 17 | 4.1% | 7.1% | Bottom tier | |
Quality | 50 | 4.8% | 4.5% | Around median | |
Safety | 71 | — | 2.6x | Top tier | |
Capital Return | 59 | 1.76% | 0.06% | Around median | |
Momentum | 44 | 87.9% | -1.6% | Around median | |
Sentiment | 79 | 8 | 3 | Top tier |
The floor: what the company is worth if growth stopped today
67% of today's price is what a buyer pays for growth that has not happened yet.
10-year US Treasury yield 4.96% as of 2026-10-22. Estimates computed from company data and analyst targets, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Nokia Oyj operates in telecommunications equipment and networks, generating revenue from Network Infrastructure, including Optical Networks, IP Networks, and Fixed Networks, and from Mobile Infrastructure, which includes Radio Networks and Core Software, in addition to licensing its standards and technologies. The company is strategically focused on connecting data centers and AI and cloud infrastructure, while developing the AI RAN platform, which shifts radio networks from reliance on hardware upgrades to performance optimization through software and artificial intelligence.
In Q2 fiscal year 2026 ended 2026-06-30, Nokia recorded revenue of €4.8 billion, up 5.9% year over year from €4.5 billion in the corresponding quarter. Net income was €2.0 million and diluted earnings per share were 0.0003, while gross margin reached 44.6% versus 43.4% a year earlier, but operating margin declined to -1.0% from 1.8%. Operating momentum came primarily from Optical Networks and IP Networks and sales to AI and cloud customers, while Nokia continued reducing its exposure to less differentiated activities in Fixed Networks.
Operating cash flow was -€620.0 million in Q2 fiscal year 2026, reflecting employee incentive payments and an increase in working capital, after €783.0 million in the previous quarter. Over the last 12 months through 2026-06-30, the company generated revenue of €20.3 billion, net income of €717.0 million, and free cash flow of €536.0 million. Cash and investments amounted to €4.3 billion versus total debt of €3.4 billion at quarter-end.
Q2 FY2026
Last 12 months to 2026-06-30
When: 2026-10-22
Q3 fiscal year 2026 revenue growth on a sequential basis within a range of 3% to 7%
Mobile Infrastructure gross margin in Q3 fiscal year 2026 within a range of 44% to 46%
The analyst target method, which prices expected growth, indicates a median of $18 within a range of $15 to $20 based on 13 analysts, but it has low confidence and should therefore be viewed as indicative; the average consensus target is $17.5. The industry multiple method, which values Nokia like its peers based on earnings over the last 12 months and a median multiple of 35.9 times for 21 companies, produces a value of $5.07 within a range of $3.05 to $8.71. The no-growth value, which measures what remains if current after-tax operating profit stays constant forever, is $1.62 at a discount rate of 8.8%, using a 10-year U.S. Treasury yield of 5.18% as of 2026-09-24. The methods diverge clearly: analyst targets assign weight to expected growth, the industry multiple reflects peer-company pricing, and the no-growth value excludes any future expansion; analyst targets are inherently optimistic, while the cash flow model is inherently conservative.
Figures in the text are as of 2026-09-27; the live price is shown at the top of the page.
AI and cloud were the fastest-growing customer segments in Q2 fiscal year 2026 ended 2026-06-30, with sales more than doubling year over year. Orders reached €2.8 billion, and management expects about half to convert into revenue within 12 months. Demand was concentrated in Optical Networks and IP Networks designed to connect data centers and scale-across fabrics.
Revenue in Q2 fiscal year 2026 ended 2026-06-30 was approximately €4.8 billion, up 5.9% year over year, but operating margin was -1.0% and net income was only €2.0 million. Pressures included growth investments, stock-based compensation, restructuring, and product mix while scaling IP Networks and data center switching. The quarter also benefited from bringing forward some software revenue from Q3, meaning the quality of the timing distribution between the two quarters requires monitoring.
Automated analysis for informational purposes only — not investment advice.
Nokia launched its commercial AI RAN platform in July 2026 and announced ten customers for trials planned to begin at the end of 2026. The company is targeting commercial availability in 2027, with volumes expected to become more significant in 2028. The platform targets spectral efficiency gains exceeding 100% by 2028, with a software-based upgrade path from 5G to 6G.
In Q2 fiscal year 2026 ended 2026-06-30, cash and investments amounted to €4.3 billion versus total debt of €3.4 billion. Over the last 12 months through 2026-06-30, operating cash flow was €1.1 billion, or 158% of net income of €717.0 million, and free cash flow was €536.0 million. However, the latest quarter alone recorded negative operating cash flow of €620.0 million because of annual incentives and an increase in working capital.
AI and cloud orders reached €2.8 billion in Q2 fiscal year 2026 ended 2026-06-30, but management described the order pattern as volatile and does not expect this level to recur every quarter. Only about half of the orders are expected to convert into revenue within 12 months, while the remaining commitments extend over longer periods. The IP Networks customer base in this area also remains relatively concentrated, and advanced products face supply constraints, particularly in memory and Optical Networks components.
The analyst consensus is Buy, with an average target of $17.5 and a range of $15 to $20. The median analyst target method is $18 based on 13 analysts, although confidence in this method is low and its indication is only directional. In contrast, the industry multiple value is $5.07, while the no-growth value is $1.62, and the divergence reflects differing assumptions about future growth rather than agreement on a single value.