Highlights

  • Nokia’s Q4 FY25 comparable net sales increased 3% year-on-year to EUR 6.1 billion, driven by Network Infrastructure and Mobile Networks
  • Network Infrastructure posted 7% comparable growth in Q4 FY25.
  • Nokia closed FY2025 with a net cash position of EUR 3.4 billion, reinforcing balance sheet flexibility
  • The company introduced 2026 guidance targeting comparable operating profit of EUR 2.0 billion to EUR 2.5 billion.

 

Nokia Corporation (LSE:OHAF) released its financial report for the fourth quarter and full year ended 31 December 2025, outlining performance that remained in line with expectations while reinforcing its strategic and financial positioning heading into 2026.

For the December quarter FY25, comparable net sales increased 3% year-on-year to EUR 6.1 billion, driven by growth across Network Infrastructure and Mobile Networks. On a reported basis, net sales rose 2% to EUR 6.125 billion.

Comparable gross margin expanded to 48.1%, reflecting a favourable product mix, although reported gross margin declined to 44.9% due to higher restructuring-related charges during the quarter.

Comparable operating margin for Q4 eased to 17.3%, down 90 basis points year-on-year, largely reflecting growth investments in Network Infrastructure, including integration activities related to Infinera. Reported operating margin declined to 8.8%, also impacted by restructuring costs. Comparable diluted earnings per share for the quarter were EUR 0.16, while reported diluted EPS stood at EUR 0.10.

Network Momentum and Cash Generation Shape FY2025 Performance

Network Infrastructure delivered 7% comparable net sales growth in Q4 FY25, supported by a 17% increase in Optical Networks. Order intake remained solid across Optical and IP Networks, with book-to-bill above one, reflecting demand from AI and cloud-related customers. Mobile Networks recorded 6% growth during the quarter, while Cloud and Network Services declined modestly.

For the full year, comparable net sales increased 2% year-on-year, with reported net sales up 3%. Comparable operating profit reached EUR 2.0 billion, slightly above the midpoint of prior guidance, while free cash flow totalled EUR 1.5 billion, representing a conversion rate of 72%.

Balance Sheet Strength and 2026 Guidance Come into Focus

Nokia ended the year with a net cash position of EUR 3.4 billion, providing capacity to support investments and shareholder returns. The Board proposed a dividend authorization of up to EUR 0.14 per share for FY2025, with a EUR 0.03 per share dividend approved for payment in February 2026.

Looking ahead, Nokia introduced financial guidance for 2026, targeting comparable operating profit in the range of EUR 2.0 billion to EUR 2.5 billion. Management highlighted continued focus on disciplined execution, portfolio simplification, and capturing opportunities linked to AI, cloud infrastructure, and next-generation network technologies.

Nokia’s Q4 and full-year update highlights steady execution, margin discipline, and a solid balance sheet, while 2026 guidance places emphasis on profitability, AI-driven demand, and operational focus as the company advances its simplified operating model.