Key Highlights
- First-quarter comparable operating profit surged 54% to €281M, exceeding Wall Street expectations
- AI-focused and cloud infrastructure revenue expanded 49%, with €1B in fresh orders secured
- Network Infrastructure growth outlook lifted to 12–14%; Optical+IP segment forecast raised to 18–20%
- Shares reached their strongest level since April 2010, climbing nearly 7% on Helsinki exchange
- Northland boosted price target to $13; major institutions including Calamos, Millennium, and Goldman Sachs expanded holdings
The Finnish telecommunications equipment manufacturer achieved a 16-year peak in its stock valuation following an impressive first-quarter performance, fueled primarily by surging demand for AI and optical networking solutions.
The company’s comparable operating profit for the first quarter of 2026 registered at €281 million, representing a 54% year-over-year increase that surpassed the analyst consensus projection of €250 million. Total net sales climbed to €4.5 billion, marking a 4% annual increase.
Earnings per share aligned with analyst expectations at $0.06. Revenue totaled $5.27 billion, significantly exceeding the Street’s forecast of $4.59 billion.
Shares advanced nearly 7% during early trading on the Helsinki exchange on April 23, reaching levels not seen since April 2010. Trading on the New York Stock Exchange saw NOK gain 1.4% to close at $10.48 on Friday, within its 52-week trading range of $4.00 to $10.90.
Revenue from AI infrastructure and cloud computing clients expanded 49% during the three-month period. The company secured €1 billion worth of new AI and cloud-related contracts, achieving a book-to-bill ratio exceeding 1.0.
Company Dramatically Increases AI Market Projections
Nokia substantially revised its addressable market forecast for AI and cloud infrastructure, now projecting a 27% compound annual growth rate spanning 2025 through 2028. This represents a significant upward revision from the 16% growth rate presented during its November 2025 investor presentation.
Growth guidance for the Network Infrastructure division was elevated to 12–14% for 2026, a notable increase from the previous 6–8% projection. Similarly, the Optical and IP segment forecast was upgraded to 18–20%.
The Optical Networks division posted 20% revenue growth in the first quarter. Integration of Infinera is proceeding faster than initially anticipated, and the company introduced an expanded product portfolio featuring a multi-rail amplifier and modular optical engine technology.
CEO Justin Hotard indicated the organization is “currently tracking somewhat above the mid-point” of its annual comparable operating profit guidance range of €2.0–2.5 billion.
A second indium-phosphide manufacturing plant located in San Jose is scheduled to commence production later this year, expanding optical component production capacity.
Wall Street Upgrades and Major Institutional Accumulation
Northland Securities elevated its price objective on NOK shares to $13 from $10, pointing to accelerating demand for AI-driven optical connectivity infrastructure. Bank of America upgraded the stock to a “buy” rating with a $12.40 target price earlier in April.
Analyst consensus currently stands at “Moderate Buy” based on assessments from 17 analysts, including 10 buy recommendations, 6 hold ratings, and 1 sell rating. The average price target registers at $8.83, though several recent analyst targets have moved substantially higher.
Regarding institutional ownership, Calamos Advisors expanded its NOK stake by 28.1% during the fourth quarter to approximately 1.95 million shares. Millennium Management dramatically increased its position by over 6,500% in Q1, adding nearly 2.8 million shares. Goldman Sachs accumulated just over 1 million additional shares in the first quarter, elevating its total holding to 12.55 million.
The company also announced a quarterly dividend increase to $0.0468, up from the previous $0.04. The annualized dividend of $0.19 yields approximately 1.8%, with a record date of April 28 and distribution scheduled for May 12.
Executive leadership identified semiconductor supply chain constraints and extended order fulfillment cycles as potential near-term headwinds. The Fixed Networks segment experienced a 13% revenue decline, which management attributed to strategic portfolio optimization.
Short interest in NOK increased roughly 24% during April to approximately 68.2 million shares, though the days-to-cover metric remains minimal at 0.7.
As of Friday’s market close, Nokia’s market capitalization stood at approximately $60 billion, with shares trading at a price-to-earnings ratio of 65.29.
