Nokia stock gains as AI demand lifts orders, cash outlook softens

Nokia's third-quarter report points to accelerating demand for network infrastructure while highlighting near-term pressure on cash conversion. In the report published on October 22, 2026, Nokia said sales to AI and Cloud customers rose 123% year over year and related order intake increased 118% to 1.5 billion euros. The figures were published in the company's Q3 interim report.

Nokia stock traded at 7.73 euros on Lang & Schwarz at 12:30 CET on Wednesday, November 11, 2026, 3.76 percent above the Xetra close of Tuesday, November 10, at 7.45 euros. The comparison uses the previous Xetra session because the current European trading day had not reached the 17:35 CET close.

AI demand strengthens network infrastructure

Group net sales increased 9% on a constant-currency basis in the third quarter and 10% on a reported basis. Network Infrastructure was the main growth engine, with constant-currency sales up 15%. Within the segment, IP Networks grew 43% and Optical Networks 18% year over year.

Comparable operating profit rose 35% to 605 million euros, lifting the comparable operating margin by 220 basis points to 11.7%. Reported operating profit fell 22% to 196 million euros, and reported operating margin declined to 3.8% as accelerated restructuring and integration costs weighed on the quarter. The contrast means stronger underlying operating performance has not yet translated into equivalent reported earnings.

Chief Executive Justin Hotard said Nokia secured 1.5 billion euros in new AI and Cloud orders and expects its combined Optical and IP Networks businesses to grow between 25% and 30% in 2027. Nokia also said it completed an AI-RAN call with T-Mobile and NVIDIA in a live operator network, moving the technology closer to commercial deployment.

Cash conversion remains the key risk

Nokia kept its 2026 comparable operating profit outlook at 2.1 billion to 2.6 billion euros. At the same time, it lowered the expected free cash flow conversion from comparable operating profit to 35% to 55%. The company plans an additional 400 million euros of working-capital investment in 2026 to secure supply and support expected growth in 2027.

Restructuring and associated charges are now expected to reach 1.1 billion euros, with related cash outflows of 800 million to 900 million euros. For investors, the central issue is whether strong AI-driven orders convert into shipments, margin expansion and cash generation without placing further strain on working capital.

Nokia expects fourth-quarter sales to rise 20% to 24% sequentially and anticipates a strong increase in comparable operating profit. The company plans to publish its fourth-quarter and full-year 2026 results on January 28, 2027.

The wider European market can be followed through current Euro Stoxx 50 market developments.

More news and analyses on Nokia stock remain focused on AI infrastructure demand, execution and cash conversion.