Nokia Oyj’s second-quarter 2026 results showed sales rising to €4,815 million from €4,443 million a year earlier, while net income slipped to €2 million from €90 million as restructuring and other charges weighed on profitability.
At the same time, Nokia accelerated its push into AI-native networks with the launch of its commercial AI-RAN platform and €2.8 billion in AI-related order intake, underlining a shift toward higher-value cloud and AI infrastructure despite near-term margin pressure.
We’ll now examine how Nokia’s AI-RAN launch and surging AI and cloud demand may reshape the existing investment narrative on the company.
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Nokia Oyj Investment Narrative Recap
To own Nokia today, you need to believe that its shift toward AI-native networks and cloud-focused infrastructure can gradually improve profitability, even as heavy restructuring and memory-related supply constraints weigh on near term results. The latest quarter reinforces AI and cloud as the key near term catalyst, with €2.8 billion in AI-related orders and the AI-RAN launch, while the biggest current risk remains execution and margin pressure in Mobile Networks amid competitive and technological upheaval.
The AI-RAN announcement stands out because it directly links Nokia’s RAN business to the same AI and cloud demand that is lifting Network Infrastructure. By promising software-driven spectral efficiency gains and Open RAN compliant upgrades, AI-RAN could help Nokia defend share in a challenged mobile market while tying operators more closely to its broader AI and optical portfolio, making it central to how you think about both upside from AI orders and the risk of commoditization.
Yet behind the AI excitement, investors should still pay close attention to Nokia’s dependence on traditional carrier spending and what happens if hyperscaler deals do not materialize as hoped…
Read the full narrative on Nokia Oyj (it’s free!)
Nokia Oyj’s narrative projects €23.6 billion revenue and €2.5 billion earnings by 2029. This requires 5.6% yearly revenue growth and about a €1.7 billion earnings increase from €774.0 million today.
Uncover how Nokia Oyj’s forecasts yield a €10.84 fair value, a 32% upside to its current price.
Exploring Other Perspectives 
HLSE:NOKIA 1-Year Stock Price Chart
Before this earnings beat, the most optimistic analysts were modeling Nokia’s earnings to reach about €3.3 billion by 2029, far above consensus, and counting on faster hyperscaler traction. Compared with the baseline focus on AI-RAN and current AI orders, that is a much more optimistic story that could be challenged or reinforced by how this new AI driven demand ultimately converts into sustainable margins and diversified customers.
Explore 5 other fair value estimates on Nokia Oyj – why the stock might be worth just €10.46!
Decide For Yourself
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NOKIA.HE.
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