Nokia stock weighs AI growth against a tougher cash outlook

Published on 11/09/2026 at 17:40 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Nokia stock remains tied to strong AI and cloud demand after a solid third quarter. Cash conversion and integration costs are now central investor watchpoints.

AI Growth Meets Cash Discipline

AI and cloud sales more than doubled in the third quarter, while related order intake reached 1.5 billion euros.
Nokia kept its 2026 comparable operating profit outlook unchanged despite higher restructuring and integration costs.
Investors are now watching whether strong network demand converts into shipments, margins and cash.

Nokia, FI0009000681, Illustration mit AI erstellt.

Nokia's third-quarter performance strengthened the case for its AI and cloud infrastructure strategy, but it also exposed a gap between operating profit and cash generation. The company kept its 2026 comparable operating profit outlook unchanged as investors assessed the cost of its transformation.

According to ad-hoc-news.de, Nokia's net sales rose 10 percent year on year to 5.15 billion euros in the July-to-September quarter. Comparable operating profit increased 35 percent to 605 million euros, while reported operating profit fell 22 percent to 196 million euros as restructuring and integration costs rose.

AI Demand Drives Network Growth

Network Infrastructure provided the main operating momentum. Sales in the division grew 15 percent on a constant-currency basis, led by a 43 percent increase in IP Networks and an 18 percent increase in Optical Networks. Sales to AI and cloud customers jumped 123 percent, and related order intake rose 118 percent to 1.5 billion euros.

Chief Executive Justin Hotard said Nokia expects its combined Optical and IP Networks businesses to grow between 25 percent and 30 percent in 2027. The outlook points to continued demand for networking capacity as computing workloads spread across data centers, cloud platforms and network edges.

Cash Conversion Remains The Test

Operating momentum did not remove pressure on cash generation. Nokia reported negative free cash flow of 99 million euros in the third quarter, while restructuring and integration work continued to weigh on reported earnings. The company maintained its 2026 comparable operating profit outlook of 2.1 billion to 2.6 billion euros.

Nokia stock traded at 7.37 euros on Lang & Schwarz at 17:37 CET on Monday, November 9, 2026. Compared with the 7.03-euro quote in the own report published at 12:15 CET the same day, the difference was 4.84 percent.