Nokia (NOKIA) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales grew 9% year-over-year on a constant currency and portfolio basis, with all business groups contributing and strong demand from AI and cloud customers, especially in Optical and IP Networks.

• Profitability aligned with expectations; operating margin declined 220bps to 9.0% due to the absence of a prior year one-time benefit.

• Infinera integration is ahead of schedule, contributing positively to sales and order intake.

• Order backlog coverage entering Q4 is stronger than recent years.

• On track to achieve full-year outlook, expecting sequential net sales growth in Q4 above historical seasonality.

Financial highlights

• Q3 2025 net sales reached EUR 4,833 million, up 9% year-over-year on a constant currency and portfolio basis.

• Gross margin was 44.2%, down 150bps year-over-year due to product mix in Network Infrastructure and Mobile Networks.

• Operating margin was 9.0%, down 220bps year-over-year, mainly due to a one-time benefit in the prior year.

• Free cash flow was EUR 429 million; net cash position at quarter-end was EUR 3.0 billion.

• Network Infrastructure net sales grew 11%; Cloud and Network Services up 13%; Mobile Networks up 4%; Nokia Technologies up 14%.

Outlook and guidance

• Full-year 2025 comparable operating profit guidance raised to EUR 1.7–2.2 billion due to a change in venture fund reporting.

• Free cash flow conversion expected at 50–80% of comparable operating profit.

• Q4 2025 net sales expected to be slightly above normal seasonality, with strong growth in Network Infrastructure and Cloud and Network Services.

• Tracking toward the mid-point of the operating profit outlook range.

• Dividend of EUR 0.03 per share declared, with a remaining authorization of EUR 0.03 per share.