Nokia’s Dual-Track Strategy Meets Market Skepticism as Stock Drops 10% Ahead of Earnings
29.06.2026 - 03:16:54 | boerse-global.de
Nokia’s share price has taken a sharp U?turn in recent days, shedding nearly 10% to close at €11.44 and sliding below the 50?day moving average of €11.76. The sell?off gathered pace on Friday, when the stock lost roughly 7% in a single session. The move stands in stark contrast to the company’s year?to?date performance — still up around 105% — and its 12?month gain of 161%.
The decline came even as the Finnish telecoms equipment maker announced a flurry of strategic initiatives. Chief among them is a push into drone defence: Nokia has joined a Finnish?Nordic industrial consortium to develop anti?drone systems for the Finnish Border Guard. The company will supply secure connectivity, real?time data exchange and system interoperability built on 5G?Advanced technology. Test platforms are scheduled for 2027, with deliveries to border units expected in 2028.
On the cloud side, Nokia has deepened ties with Amazon Web Services, putting its “Autonomous Network Fabric” product onto the AWS cloud. The goal is to give telecom operators a path to Level?4 network autonomy using AI agents and digital twins. A separate proof?of?concept with Databricks allows carriers to scale AI?driven processes and run real?time analytics without major code rewrites. At the DTW event in Copenhagen, Nokia also unveiled an “Agent Library” designed to automate fault diagnosis and performance management.
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Beyond AWS, the company has struck partnerships with Google Cloud and scored a win in Japan, where DOCOMO became the first local operator to deploy Nokia’s AI software for automated network optimisation.
Yet the market’s reaction has been muted. Investors are increasingly focused on the traditional networking business, where softness continues to weigh on results. While Nokia’s AI and cloud segments grew 49% in the first quarter, doubts persist over whether that momentum can offset headwinds in legacy divisions fast enough to lift overall profitability. On a monthly basis, the stock is down roughly 15%.
Analysts remain broadly constructive, but the bar is rising. Of 18 experts tracked by MarketBeat, 12 rate the shares a buy. JPMorgan raised its price target from €12 to €18 in June, citing Nokia’s growth potential among cloud providers, and maintains an “Overweight” rating. The stock’s relative strength index has slipped to 43.6, signalling a neutral stance after the pullback, and it still trades some 24% below its 52?week high of €14.97 reached on June 3.
All eyes now turn to the second?quarter earnings report due on July 23, 2026. Analysts forecast earnings per share of $0.07 on revenue of roughly $5.6 billion. Management has guided for network infrastructure revenue growth of 12?14%, and has flagged planned investments in optical networks. Whether that trajectory holds — and whether the new cloud and defence deals start to show in the numbers — will determine if the current correction is a buying opportunity or the beginning of a deeper reckoning.
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