Nokia stock weighs AI growth against a tougher cash outlook

Nokia's third-quarter report on October 22 showed strong demand from AI and cloud customers, but also a heavier cash burden from growth investments and restructuring. In its official interim report, Nokia said reported net sales rose 10 percent year over year to EUR 5.154 billion, while constant-currency growth was 9 percent.

What has changed since the last report

The stock moved from EUR 7.78 in the previous report on Monday, November 2, 2026 at 09:48 CET to EUR 7.69 at 18:01 CET, a decline of 1.16 percent. This comparison is separate from a daily Xetra comparison.

Nokia's comparable operating profit increased 35 percent to EUR 605 million, lifting the comparable operating margin to 11.7 percent from 9.5 percent. Reported operating profit fell to EUR 196 million from EUR 252 million as accelerated restructuring and integration costs reduced the reported result.

AI demand supports network growth

Network Infrastructure sales rose 15 percent on a constant-currency basis. IP Networks grew 43 percent and Optical Networks increased 18 percent, while sales to AI and Cloud customers jumped 123 percent and related order intake rose 118 percent.

Nokia kept its 2026 comparable operating profit outlook at EUR 2.1 billion to EUR 2.6 billion. Management expects the combined Optical Networks and IP Networks businesses to grow 25 percent to 30 percent in 2027, creating a longer-term growth case that depends on execution and supply availability.

Cash conversion is the key constraint

Nokia plans an additional EUR 400 million of working-capital investment during 2026. It consequently lowered its free cash flow conversion assumption to 35 percent to 55 percent of comparable operating profit and raised expected restructuring and related charges to EUR 1.1 billion.

Nokia stock traded at EUR 7.69 on Lang & Schwarz at 18:01 CET on Monday, November 2, 2026.

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