Nokia's Strategic Reshaping: From FWA Exit to Satellite Ambitions

Nokia shares closed at EUR 9.47, extending a 69% year-to-date gain, as Jefferies reiterated its buy rating ahead of Q3 results on October 22.

Nokia shares closed Friday at EUR 9.47, up 2.2%, a move that market participants attributed to no single company-specific catalyst. The advance extends a remarkable run for the Finnish telecom equipment maker, whose stock has climbed 69% since the start of the calendar year. With third-quarter results approaching, investors are training their focus on how management's portfolio realignment is translating into operational performance.

Jefferies Reiterates Bullish Call

Analysts at Jefferies reaffirmed their buy rating on Nokia on September 23, setting a price target of EUR 13.80, according to media reports. Analyst Janardan Menon highlighted the company's involvement in integrating optical indium phosphide chips, a technology that could strengthen Nokia's hand in high-capacity network infrastructure. Menon also flagged the expanding data center interconnect business as an additional growth driver.

That optical story is being complemented by a broader push into network-based software. On September 29, Saudi Arabian operator Zain KSA went live with Nokia's Deepfield Cloud Intelligence platform. The solution delivers real-time analytics and visibility into network traffic across more than 100 cities, helping the carrier detect faults quickly and uphold service-level commitments.

Divestment and Orbital Partnership

While building out these growth areas, Nokia is simultaneously shedding peripheral operations. On Thursday, Inseego completed its acquisition of Nokia's Fixed Wireless Access business. In return, Nokia received warrants and roughly 1.9 million Inseego shares — a stake of approximately 11%. Nokia also committed to a cash payment of USD 10 million by October 15, 2026. The transaction converts a directly operated business unit into a strategic minority holding, allowing Nokia to retain exposure to the segment's future upside without shouldering its ongoing development costs.

The same day brought news of a partnership with ICEYE covering satellite communications in low Earth orbit. The system targets government customers for defense, border security, emergency services, and disaster relief. According to Reuters, the first satellites are slated for launch in 2028. Together, the Inseego divestment and the ICEYE tie-up illustrate a deliberate strategy to expand beyond conventional mobile networking, positioning Nokia as a supplier for critical infrastructure and highly secure communications channels serving state agencies and large enterprise clients.

October Report in the Spotlight

The next major reference point for the capital market arrives on October 22, 2026, when Nokia publishes results for the third quarter and the first nine months of the year. Investors are expected to scrutinize the report for evidence that the strategic repositioning is feeding through to margins — and whether the operating business can back up this year's share price gains with solid earnings figures.