Nokia Q4 “in line with expectations”
January 29, 2026
Nokia has reported that Q4 comparable net sales grew 3 per cent y-o-y on a constant currency and portfolio basis (+2 per cent reported) with growth in both Network Infrastructure and Mobile Networks.
Q4 comparable gross margin expanded 90bps y-o-y to 48.1 per cent, attributed to a strong product mix offsetting a lower contribution from Nokia Technologies. Reported gross margin declined 120bps to 44.9 per cent due to higher restructuring related charges in the fourth quarter.
Justin Hotard, Nokia CEO, commented: “Our fourth quarter performance was in line with our expectations, reflecting disciplined execution across the business. Fourth quarter net sales grew 3 per cent to reach €6.1 billion and we generated full year operating profit of €2 billion, slightly above the mid-point of our guidance. I want to thank Team Nokia for their disciplined execution and commitment in delivering these results.”
“Across our mobile-related businesses we remained focused on profitability and disciplined execution. Mobile Networks net sales grew by 6 per cent in Q4 and were flat for the full year. Cloud and Network Services declined 4 per cent in the quarter. Net sales grew 6 per cent for the full year against a market that declined 2 per cent while also delivering 5 points of operating margin expansion driven by our cloud-native core networks. In Nokia Technologies we continued to execute well and maintained a contracted net sales run-rate of €1.4 billion.”
“During 2025, we repositioned Nokia to sharpen execution and focus on where we see the greatest long-term opportunities. We strengthened our portfolio with the acquisition of Infinera, and set a clear strategy for Nokia for how AI is fundamentally changing the role of networks. We communicated this at our Capital Markets Day and announced the simplification of our operating model into Network Infrastructure and Mobile Infrastructure from the start of 2026.”
“At the start of 2026, our Mobile Infrastructure segment brought together Core Software, Radio Networks and Technology Standards. This structure is designed to sharpen accountability, improve profitability, and position the business for long-term technology leadership. While near-term demand is driven by 5G technologies and we see promise for OpenRAN, we are also investing to lead in the transition towards AI-native networks and 6G. We believe the NVIDIA partnership we announced in Q4 helps position us favorably to lead this transition.”
“We believe AI is a long-term structural shift that is expanding the role of networks as intelligence moves beyond data centers into real-world systems. Networks will require performance, security and reliability to support everything from large language models to intelligent agents, augmented reality devices and autonomous robots. Our focus is to deliver these trusted AI-native networks, enabling broad AI adoption, supporting increased productivity and delivering sustainable growth over time.”
“Looking ahead to 2026, our focus is on disciplined execution to capture growth in AI & 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.”
“In financial terms – we target €2 to 2.5 billion of comparable operating profit in 2026. We see strong demand trends in Network Infrastructure as we ramp new products expanding our presence in AI & Cloud and invest for long-term growth. In Mobile Infrastructure we see a stable market environment and are focused on efficiency and improving profitability. Overall, we expect 2026 will show clear progress towards the long-term targets that we laid out at our Capital Markets Day in November.”
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