Key Highlights
- Comparable operating profit for Q1 surged 54% to €281M, exceeding Wall Street projections
- Revenue from AI and cloud customers expanded 49%, with €1B in fresh orders secured during the period
- Management elevated Network Infrastructure growth forecast to 12–14% and Optical+IP outlook to 18–20%
- NOK shares reached their highest valuation since 2010, climbing nearly 7% during Helsinki session
- Northland elevated price target to $13; major institutions including Calamos, Millennium, and Goldman Sachs expanded stakes
Nokia shares climbed to their highest valuation in sixteen years following an impressive first-quarter performance, powered by surging demand in AI infrastructure and optical networking solutions.
The Finnish telecommunications equipment manufacturer reported comparable operating profit of €281 million for the first quarter of 2026, marking a 54% year-over-year increase and surpassing the analyst consensus projection of €250 million. Total net sales climbed to €4.5 billion, representing a 4% annual gain.
Earnings per share aligned with the $0.06 consensus figure. Total revenue of $5.27 billion significantly outpaced analyst expectations of $4.59 billion.
Shares advanced nearly 7% during early Helsinki market activity on April 23, reaching levels not seen since April 2010. Trading on the New York Stock Exchange, NOK climbed 1.4% to $10.48 on Friday, with the 52-week trading range extending from $4.00 to $10.90.
Revenue generated from AI and cloud infrastructure customers expanded 49% during the three-month period. The company secured €1 billion in fresh AI and cloud-related orders, achieving a book-to-bill ratio exceeding 1.0.
Revised AI Market Projections Point to Accelerated Growth
Nokia updated its addressable market forecast for AI and cloud infrastructure, now projecting a 27% compound annual growth rate spanning 2025 through 2028. This represents a substantial increase from the 16% projection shared during a November 2025 investor presentation.
Guidance for the Network Infrastructure division was elevated to 12–14% growth for 2026, up from the previous 6–8% forecast. The Optical and IP segment outlook received a similar boost to 18–20%.
The Optical Networks division delivered 20% sales expansion in Q1. Integration of Infinera is progressing ahead of expectations, and the company introduced an enhanced product portfolio featuring a multi-rail amplifier and modular optical engines.
Chief Executive Officer Justin Hotard indicated the company is “currently tracking somewhat above the mid-point” of its full-year comparable operating profit guidance range of €2.0–2.5 billion.
A second indium-phosphide manufacturing facility located in San Jose is scheduled to begin production later this year, expanding optical component manufacturing capacity.
Wall Street Upgrades and Growing Institutional Interest
Northland Securities raised its NOK price objective to $13 from $10, pointing to accelerating demand for AI-focused optical connectivity solutions. Bank of America upgraded shares to “buy” with a $12.40 target earlier in April.
The equity currently carries a “Moderate Buy” consensus rating from 17 Wall Street analysts, comprising 10 buy recommendations, 6 hold ratings, and 1 sell rating. The average price objective stands at $8.83, though several recent targets have moved considerably higher.
Regarding institutional activity, Calamos Advisors expanded its NOK holdings by 28.1% during Q4 to approximately 1.95 million shares. Millennium Management increased its position by over 6,500% in Q1, adding nearly 2.8 million shares. Goldman Sachs acquired just over 1 million shares during Q1, elevating its total holdings to 12.55 million.
Nokia also announced a quarterly dividend increase to $0.0468, up from $0.04. The annualized dividend of $0.19 translates to an approximate yield of 1.8%, with a record date of April 28 and distribution scheduled for May 12.
Executives highlighted semiconductor supply chain constraints and extended order fulfillment cycles as potential near-term headwinds. Fixed Networks revenue declined 13%, which management attributed to strategic portfolio optimization efforts.
Short interest in NOK increased approximately 24% during April to roughly 68.2 million shares, though the days-to-cover metric remains modest at 0.7.
Nokia’s market capitalization stood at approximately $60 billion as of Friday’s market close, with shares trading at a price-to-earnings ratio of 65.29.
