Nokia Falls 9% After Q3 Revenue Beat and Lower Cash Flow Forecast
Nokia shares fell 9% after third-quarter revenue beat estimates at €5.15 billion and comparable earnings per share of €0.09 matched expectations. The company kept its profit outlook but lowered its 2026 free cash flow conversion forecast to 35%-55% from 55%-75% because of an extra €400 million in working capital for 2027 supply. AI and Cloud sales more than doubled, and management expects Optical and IP Networks to grow 25%-30% in 2027.
Nokia’s revenue rose to €5.15 billion, beating estimates, while comparable EPS of €0.09 matched. AI and cloud sales climbed 123% at constant currency, IP Networks grew 43%, and new AI/cloud orders totaled €1.5 billion. Some Mobile Infrastructure growth came from fourth-quarter sales pulled forward.
Nokia kept its €2.1 billion–€2.6 billion profit outlook but raised restructuring charges to €1.1 billion from €800 million. It added €400 million to working capital for 2027 supply, lowering 2026 free cash flow conversion guidance to 35%–55% from 55%–75%. Third-quarter free cash flow was negative €99 million; net cash was €2.58 billion.
Nokia’s lower cash-flow conversion and higher restructuring charges could affect shareholders through weaker near-term cash returns and valuation pressure, while employees and suppliers may feel the effects of cost-cutting and inventory commitments. Telecom operators and cloud customers could benefit if Nokia’s expanded supply supports faster network buildouts, though the company’s spending may influence pricing or investment priorities. The wider public may see indirect effects through network capacity and service quality, but those outcomes depend on whether the projected 2027 growth materializes.