Nokia stock weighs AI growth against weaker cash conversion

Nokia's third-quarter results showed strong demand for AI and cloud infrastructure, but also highlighted the cash and integration challenges investors are watching. Nokia stock traded at 7.03 euros on Lang & Schwarz at 12:15 CET on Monday, November 9, 0.57 percent above the Xetra close of 6.99 euros on Friday, November 6.

The figures were reported for the July-to-September period and covered by Daily Finland. Net sales rose 10 percent year on year to 5.15 billion euros from 4.7 billion euros. On a constant-currency basis, growth was 9 percent.

AI infrastructure drives the quarter

Comparable operating profit increased 35 percent to 605 million euros. Reported operating profit, however, fell 22 percent to 196 million euros because restructuring and integration costs increased. The difference matters for investors because the underlying operating performance improved while reported earnings remained burdened by the company's transformation and integration work.

Nokia's Network Infrastructure division was the main growth engine. Revenue in the division rose 15 percent on a constant-currency basis, with IP Networks up 43 percent and Optical Networks up 18 percent. Sales to AI and cloud customers jumped 123 percent year on year, while order intake from those customers increased 118 percent to 1.5 billion euros during the quarter.

President and CEO Justin Hotard said Nokia expects its combined Optical and IP Networks businesses to grow between 25 percent and 30 percent in 2027. He described AI infrastructure demand as larger, more distributed and hyperconnected, pointing to an opportunity for Nokia's networking portfolio as computing workloads spread across data centers, cloud platforms and network edges.

Cash conversion remains the test

The strong operating figures did not remove concerns about cash generation. Nokia shares fell by about 3 percent in Helsinki around midday on October 22, according to the Daily Finland report, which cited weaker-than-expected cash flow as one factor behind the market reaction. That move is a dated market response and does not by itself establish a continuing trend for the current quote.

Nokia maintained its 2026 outlook for comparable operating profit of between 2.1 billion and 2.6 billion euros. For the stock, the next test is whether AI-related order growth converts into shipments, margins and cash while Nokia integrates its expanded business footprint.

Investors can follow the real-time quote of Nokia stock for the latest trading indication.

European technology shares remain sensitive to expectations for AI infrastructure spending and execution across the sector; see the latest Euro Stoxx 50 market coverage.

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