Nokia Releases Q3 2025 Interim Report

Bassyonni

ago 6 hours

Nokia Corporation has released its Q3 2025 Interim Report, showcasing a robust growth trajectory in net sales. As of October 23, 2025, the company reported a year-on-year net sales increase of 9% on a constant currency and portfolio basis, with a reported growth of 12%. The Optical Networks segment led the charge with a remarkable 19% growth.

Financial Overview of Q3 2025

The report indicated a decline in the comparable gross margin, down 150 basis points to 44.2%. Reported gross margins also fell to 43.7%. This decline was attributed to challenges in product mix within the Network Infrastructure and Mobile Networks domains, although Cloud and Network Services demonstrated resilience.

Operating Margins and Earnings

Comparable operating margin decreased to 9.0%, reflecting a yearly drop of 220 basis points. However, reported operating margins rose 140 basis points to 5.0%. Comparable diluted earnings per share (EPS) for the quarter stood at EUR 0.06, while reported EPS was EUR 0.01. Free cash flow reached EUR 0.4 billion, maintaining a net cash balance of EUR 3.0 billion.

Outlook and Strategic Developments

Nokia’s guidance for the full-year 2025 remains stable, with a revised comparable operating profit forecast of EUR 1.7 to 2.2 billion. This is an adjustment from the previous estimate of EUR 1.6 to 2.1 billion, accounting for a EUR 0.1 billion revision related to venture fund reporting changes.

Growth Across Business Segments

All business groups contributed positively to sales in Q3. Specific highlights included:

Network Infrastructure: 28% net sales growth.
Optical Networks: 19% increase, significantly from AI and Cloud customers.
Cloud and Network Services: 13% growth driven by 5G Core investments.
Mobile Networks: 4% sales growth, reflecting market stabilization.

Future Directions

Nokia plans to further enhance its optical components business by opening a new semiconductor facility in San Jose by the end of 2026. Additionally, the company has entered a strategic partnership with Nscale, aiming to supply networking equipment for data center expansions.

Dividend Information

The Board of Directors has authorized a dividend of EUR 0.03 per share, payable on November 6, 2025, with a record date of October 28, 2025. This is part of an overall plan to distribute a maximum of EUR 0.14 per share, reflecting Nokia’s commitment to shareholder value.

Looking Ahead

Nokia remains focused on achieving its ambitious growth targets. The company will outline its strategic vision and market opportunities during the Capital Markets Day in New York on November 19, 2025. With increasing demand for advanced connectivity solutions, Nokia is strategically positioned to lead in this evolving market landscape.