Nokia reported fourth-quarter net sales of €6.1 billion, up 2% year-on-year and exceeding consensus estimates. Currency- and portfolio-adjusted revenue rose 3%, driven by 17% growth in Optical Networks and 7% growth in Network Infrastructure. Cloud and Network Services declined 4%, while Mobile Networks posted a 6% increase, underscoring the resilience of Nokia’s core connectivity businesses.

Comparable gross margin expanded by 90 basis points to 48.1%, reflecting an improved product mix, while comparable operating margin contracted 90 basis points to 17.3% due to elevated R&D and go-to-market investments in Network Infrastructure. Free cash flow for the quarter stood at €0.2 billion, and the company ended the period with a net cash balance of €3.4 billion, providing ample flexibility for strategic initiatives.

The board approved a cash dividend of €0.03 per share, payable February 12 to shareholders of record on February 3. With a robust net cash position and projected free cash flow midpoint of €1.46 billion in 2026, Nokia maintains capacity to support shareholder returns while funding higher capital expenditures for 6G development and AI-driven network solutions.

For fiscal 2026, Nokia forecasts comparable operating profit between €2.0 billion and €2.5 billion, and expects Network Infrastructure sales to grow in line with its long-term 6%–8% CAGR target. The company highlights strategic partnerships—most notably with NVIDIA on AI-RAN technology and equity investment—to capture surging demand from data-center and AI customers, positioning Nokia to extend its leadership beyond traditional telecom into next-generation connectivity.