Nokia cuts cash-flow assumption despite 35% rise in comparable profit

Nokia reported a 35% rise in comparable operating profit to €605 million for the third quarter, up from €448 million a year earlier, according to finchannel.com. Revenue increased 10% to €5.154 billion, with a 9% rise on a constant-currency basis. Comparable diluted earnings per share rose to €0.09 from €0.06.

Despite these gains, Nokia reduced its free-cash-flow conversion assumption to 35%–55% of comparable operating profit and plans an additional €400 million investment in working capital for 2026 to support supply and growth in 2027. Reported operating profit fell 22% to €196 million due to accelerated restructuring and integration costs.

Nokia's shares fell sharply by 14.81% to $7.88 after the earnings release but partially recovered by 3.30% to $8.14 the following day, remaining below pre-results levels, finchannel.com reported.

The company maintained its annual comparable operating profit outlook of €2.1 billion–€2.6 billion. CEO Justin Hotard highlighted a 123% increase in AI and cloud sales, which now represent 12% of group sales, with orders rising 118% to €1.5 billion.

Nokia expects its Optical and IP Networks businesses to grow 25%–30% in 2027, driven by earlier design wins and ongoing demand for connectivity infrastructure. The company is also investing in optical connections across the data-center supply chain.