Nokia stock gains as profit outlook is raised and Q3 growth targeted

Published on 09/07/2026 at 19:23 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Nokia stock is benefiting from a higher profit outlook and expectations of Q3 revenue growth, while investors weigh valuation metrics and updated guidance for the current fiscal year.

Fotorealistischer 5G-Antennenmast mit Technikkorb vor blauem Himmel — Nokia Oyj (FI0009000681) 5G-Antennenmast in fotorealistischer Aufnahme zeigt moderne Netzwerkausrüster-Technologie im Sonnenlicht, Illustration mit AI erstellt.

Nokia Corporation stock (ISIN FI0009000681) is trading higher after the company raised its profit outlook for the current fiscal year, targeting a comparable operating profit between EUR 2.1 billion and EUR 2.6 billion and signaling revenue growth for the third quarter of 2026 as of early September 2026.Trading-Treff Nokia shares on the Helsinki exchange recently closed at EUR 8.71 after a 3.4 percent gain, compared with a 52-week high of EUR 14.97 reached in early June 2026, leaving the stock still about 40 percent below that peak.Trading-Treff

Guidance raised and Q3 growth targeted

According to a recent analysis of Nokia’s updated guidance, the company now expects a comparable operating profit in a range of EUR 2.1 billion to EUR 2.6 billion for the ongoing fiscal year 2026, up from a previous range of EUR 2.0 billion to EUR 2.5 billion, marking an increase of EUR 0.1 billion at the lower and upper ends of the forecast.Trading-Treff Nokia also tightened its investment framework for the year, planning capital expenditures between EUR 800 million and EUR 900 million in 2026, mainly due to changes in real estate plans that are intended to support profitability and cash generation.Trading-Treff

For the third quarter of 2026, Nokia anticipates net sales to rise by 3 percent to 7 percent compared with the second quarter, pointing to a mid-single-digit percentage revenue increase in its core operations.Trading-Treff The company expects comparable operating profit in the third quarter to remain broadly stable versus the second quarter, before an expected pronounced improvement in the fourth quarter of 2026 as project phasing and cost discipline take effect.Trading-Treff

Valuation debate and stock performance

A recent valuation study of Nokia stock highlights a split view among investors: while the company’s diversification strategy is acknowledged, the shares are seen as trading at an elevated price-to-earnings ratio of about 69 for the current fiscal year, compared with a calculated fair multiple of roughly 50.5 based on earnings projections.Nokia valuation analysis The same analysis, using a discounted cash flow model, estimates a fair value for Nokia shares at EUR 15.16 per share in one scenario and EUR 12.99 per share in an alternative scenario, both above the recent spot price around EUR 9.00, implying upside potential if the company delivers on its guidance.Nokia valuation analysis

Over the past month up to early September 2026, Nokia stock has climbed about 11 percent, while year-to-date performance stands at approximately 61 percent, underscoring a strong recovery from previous years yet still leaving the shares notably below their 52-week high of EUR 14.97 reached in June 2026.Nokia valuation analysis Despite this rally, the stock remains under its 50-day moving average of EUR 9.19, suggesting that technical traders still see room for consolidation before a potential retest of the early-summer highs.Trading-Treff

Analyst expectations and key risks

On the earnings side, Nokia’s 2026 earnings-per-share consensus has edged lower in recent weeks: estimates for 2026 have been reduced by about 2.5 percent to USD 0.39 per share over the last 60 days, while 2027 expectations remain unchanged around USD 0.50 per share.Zacks From a valuation perspective, Nokia currently trades at a forward price-to-sales ratio of approximately 2.27, which compares favorably to an industry average of about 4.86, indicating a discount relative to peers despite the strong share-price recovery.Zacks

According to the same analysis, Nokia carries a Zacks Rank 3 (Hold), reflecting a neutral stance where analysts recognize the company’s growth potential but also note risks related to execution in new markets, competitive pressure in network equipment, and the need to translate its artificial-intelligence and automation initiatives into sustained margin expansion.Zacks For investors, a central risk is that the raised profit outlook and planned Q3 revenue growth of 3 percent to 7 percent may already be partially priced into the stock following its 61 percent year-to-date advance, making any disappointment in operating performance or order intake more likely to trigger volatility.Trading-Treff

Saudi AI network automation expansion

One operational pillar supporting Nokia’s medium-term growth narrative is its expansion of artificial-intelligence-driven network automation solutions in Saudi Arabia, where the company is working with local operators to deploy AI-based systems that can monitor, optimize, and remediate network performance with minimal human intervention.Zacks These solutions are designed to reduce operating costs, improve service quality, and enable faster roll-out of advanced 5G and future 6G capabilities, positioning Nokia as a technology partner for carriers seeking to modernize their infrastructure in the Gulf region.Zacks

While revenue figures from the Saudi AI automation projects are not yet broken out separately, they are part of Nokia’s broader efforts to diversify its business beyond traditional mobile network hardware into software, cloud, and enterprise solutions, which typically carry higher margins and more recurring revenue potential. For investors, this diversification is a key factor in assessing whether the raised comparable operating profit range of EUR 2.1 billion to EUR 2.6 billion in fiscal 2026 can be achieved without over-reliance on cyclical carrier spending.Trading-Treff

Representative product: Nokia AI network automation

Nokia’s AI network automation platform exemplifies the company’s shift toward intelligent, software-centric solutions: it integrates machine-learning algorithms with real-time telemetry from network elements to predict faults, allocate capacity, and manage traffic flows dynamically in large-scale telecommunications networks.Zacks By automating tasks that previously required extensive manual engineering, such as optimizing radio parameters or scheduling maintenance windows, Nokia’s automation offering aims to lower operating expenses for carriers and improve end-user experience through more stable and higher-speed connections.Zacks

Stock price and market metrics

On the Helsinki Stock Exchange, Nokia shares recently closed at EUR 8.71, a 3.4 percent increase on that trading day, while another session saw the stock finish at EUR 9.18, up 6.05 percent, highlighting continued investor interest in the name as guidance has been raised and valuation debates intensify.Investing.comTrading-Treff These levels are still well below the 52-week high of EUR 14.97 recorded in early June 2026, and they also sit under the reported 50-day moving average of EUR 9.19, giving technical investors a concrete frame of reference for near-term resistance and potential upside if the company’s profit and revenue targets for 2026 are met.Trading-Treff