Nokia Corporation recently announced a 3% increase in comparable net sales for Q4 2025, achieving EUR 6.1 billion. This increase is attributed to growth in both its network infrastructure and mobile networks businesses. The company’s outcomes are in line with its full-year financial objectives, demonstrating a year of strategic redirection and portfolio growth.
In 2025, Nokia saw a 2% year-on-year rise in net sales on a constant currency and portfolio basis, and a 3% increase as reported.
The company reported a full-year operating profit of EUR 2.0 billion, marginally surpassing its previously issued guidance midpoint of EUR 1.85 billion.
Although Q4 saw a rise in revenue, Nokia’s comparable operating margin fell by 90 basis points year-on-year to 17.3%. This decrease can primarily be attributed to increased investment in network infrastructure and costs tied to the integration of Infinera, a recent acquisition aimed at strengthening Nokia’s optical networking portfolio.
The comparable gross margin expanded by 90 basis points to 48.1%, underpinned by a robust product mix that compensated for a reduced contribution from Nokia Technologies. The reported gross margin, on the other hand, fell by 120 basis points to 44.9% due to augmented restructuring costs.
In Q4, the comparable diluted EPS was EUR 0.16 (reported EUR 0.10), with a free cash flow of EUR 0.2 billion and a net cash balance of EUR 3.4 billion. For the full year, net sales expanded by 2% on a constant currency and portfolio basis (+3% reported). All these figures are within the prior guidance.
Optical networks became a major growth catalyst, bolstered by robust demand from AI and cloud deployments. IP networks saw roughly 3% growth, facilitated by a strong Q4 2024 showing. Fixed networks stayed largely steady as portfolio optimization actions balanced out growth in fiber OLT shipments. The company’s book-to-bill ratio remained well above 1, reflecting ongoing momentum across both optical and IP networks. Gross margins stayed mostly consistent year-on-year, but operating margins declined due to continued investments related to growth and the integration of Infinera.
Cloud and network services experienced a slight year-on-year dip in Q4, though full-year net sales increased by 6%, driven by strong demand in core networks. Q4’s gross margin benefited from a modest provision reversal of EUR 37 million. Even excluding this, margins improved, reflecting ongoing efforts to enhance profitability. Mobile networks also witnessed strong year-end demand, leading to a 6% growth in net sales in Q4, with gross margins bolstered by a favorable product mix. Meanwhile, Nokia Technologies signed several deals during the quarter, maintaining the contracted net sales run-rate at around EUR 1.4 billion.
What was Nokia’s full-year operating profit for 2025?
Nokia’s full-year operating profit for 2025 was EUR 2.0 billion.
What factors contributed to the decline in Nokia’s comparable operating margin in Q4 2025?
The decline in Nokia’s comparable operating margin in Q4 2025 was primarily due to increased investment in network infrastructure and costs associated with the integration of Infinera.
What trends were observed in Nokia’s network businesses in 2025?
In 2025, optical networks emerged as a key growth driver for Nokia, supported by strong demand from AI and cloud deployments. Fixed networks remained stable, while IP networks saw about 3% growth.
