The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 34 | 57.4x | 20.8x | Bottom tier | |
Growth | 56 | 4.3% | 6.1% | Around median | |
Quality | 57 | 3.1% | 6.6% | Around median | |
Safety | 80 | — | 0.7x | Top tier | |
Capital Return | 84 | — | 2.02% | Top tier | |
Momentum | 80 | 160.4% | 4.1% | Top tier | |
Sentiment | 59 | 7 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, 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 is a global leader in providing network infrastructure, software, services, and technology licensing. The company generates its revenues primarily through two main operating segments: Network Infrastructure and Mobile Infrastructure, in addition to the Technology Standards segment. The company is currently focused on leveraging the massive boom in artificial intelligence and cloud computing technologies by providing advanced optical and IP (Internet Protocol) solutions for data centers and carrier networks.
In the first quarter of fiscal year 2026, Nokia Oyj achieved a strong start to the year as net sales grew by 4% to reach EUR 4.5 billion, supported by robust 49% growth in the AI and cloud customer segment. Gross margin increased by 320 basis points to reach 45.5%, generating a gross profit slightly exceeding EUR 2 billion. Operating profit reached EUR 281 million, with the operating margin expanding by 200 basis points to 6.2%. The company generated strong free cash flow of EUR 629 million, raising its net cash to EUR 3.8 billion by the end of the first quarter.
At the segment performance level, the Network Infrastructure segment recorded 6% sales growth, driven by exceptional 20% growth in Optical Networks thanks to the integration of the Infinera acquisition and strong demand from AI customers, despite a 13% decline in Fixed Networks sales due to the voluntary phase-out of low-margin customer premises equipment (CPE). In contrast, the Mobile Infrastructure segment grew by 3%, with core software growing by 5% and radio network sales stabilizing, while the Technology Standards segment grew by 10% thanks to the settlement of prior contracts.
Nokia Oyj stock enjoys a positive analyst consensus with a Buy recommendation, with an average price target of $17.5, and the forecast range spans from a low of $15 to a high of $20. Based on the stock's historical 52-week price range of $4 to $17.45, the stock currently trades significantly below the analysts' average price target. This valuation reflects market optimism regarding the company's ability to achieve comparable operating profits for 2026 ranging between EUR 2 billion and EUR 2.5 billion, with management indicating that they are tracking ahead of the midpoint of this guidance.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
Management raised the 2026 growth guidance for the Network Infrastructure segment to a range of 12% to 14%, up from the previous guidance of 6% to 8%, due to increased visibility on orders and a strong backlog of demand. This optimism is driven by accelerating growth in combined Optical and IP Networks, whose growth guidance was also raised to 18% to 20%. The company's growing confidence in supply chain stability and securing critical optical components also supports this positive update to future guidance.
The acquisition of Infinera is showing positive results that exceed the company's original expectations, with synergy realization efforts progressing faster than the scheduled three-year timeline. These synergies contributed directly to improving the gross margins of Optical Networks in the first quarter of 2026, helping to raise the Network Infrastructure margin by 150 basis points. Management confirms its commitment to achieving a double-digit operating margin for the combined Optical Networks business thanks to this successful integration and the expansion of the shared customer base.
Automated analysis for informational purposes only — not investment advice.
At the OFC conference, Nokia Oyj unveiled next-generation multi-rail solutions tailored for hyperscalers, which deliver an 8x increase in fiber density and will begin shipping later in 2026. The company also introduced a new architecture based on 4 optical engines that enables 13 customized solutions for different applications, reducing the total cost of ownership by up to 70%. Sampling of these innovative products is scheduled to reach customers in the first half of 2027, with high-volume commercial shipping starting in the second half of the same year.
The company's new Indium Phosphide fab in San Jose, California, is on track to begin commercial production ramp-up later in 2026. This new facility will provide significant additional production capacity to support long-term growth and meet the rising demand for advanced optical components. Management explains that this factory represents a unique competitive advantage for Nokia Oyj as one of the few companies with large-scale Indium Phosphide manufacturing capabilities, although its major financial impact will become clearly visible in the years following 2026.
In the Mobile Infrastructure segment, Nokia Oyj is focusing on transitioning toward more profitable software solutions to offset the stagnation of the traditional telecom market. At the Mobile World Congress, the company introduced a new generation of AI-ready radios under the name Doksuri, which offer a 30% improvement in energy efficiency and a 25% reduction in weight. In collaboration with NVIDIA, the company is making significant progress in developing joint AI RAN solutions, aiming to begin actual field trials with customers before the end of 2026.