Nokia (NOK) Stock Surges to 16-Year High After AI Boom Lifts Q1 Earnings

TLDR

• Nokia Q1 comparable operating profit jumped 54% to €281M, beating analyst estimates
• AI and cloud net sales grew 49%, with €1B in new orders booked in the quarter
• Nokia raised its Network Infrastructure growth guidance to 12–14% and Optical+IP to 18–20%
• NOK stock touched its highest price since 2010, rising nearly 7% in Helsinki trading
• Northland raised its price target to $13; Calamos, Millennium, and Goldman Sachs all increased positions

Nokia hit a 16-year stock price high after posting a strong first quarter, with the AI and optical networking boom driving results well above expectations.

Nokia Oyj, NOK

Comparable operating profit came in at €281 million for Q1 2026, up 54% year-over-year and above the analyst consensus of €250 million. Net sales reached €4.5 billion, up 4% on the year.

EPS matched the $0.06 consensus estimate. Revenue of $5.27 billion came in well ahead of the $4.59 billion analyst forecast.

The stock rose nearly 7% in early Helsinki trading on April 23, touching its highest level since April 2010. On the NYSE, NOK traded up 1.4% to $10.48 on Friday, with the 52-week range sitting between $4.00 and $10.90.

Net sales from AI and cloud customers grew 49% in the quarter. Nokia booked €1 billion in new AI and cloud orders, with a book-to-bill ratio above 1.

AI Addressable Market Revised Sharply Higher

Nokia revised its estimate for the AI and cloud addressable market to a 27% compound annual growth rate from 2025 to 2028. That’s up from the 16% figure it put out at an investor event in November 2025.

Network Infrastructure segment sales guidance was raised to 12–14% growth for 2026, up from the prior forecast of 6–8%. The Optical and IP segment outlook was lifted to 18–20%.

Optical Networks delivered 20% sales growth in Q1. The Infinera integration is tracking ahead of schedule, and Nokia unveiled a new product roadmap including a multi-rail amplifier and modular optical engines.

A second indium-phosphide fabrication facility in San Jose is set to ramp later this year to expand optical capacity.

Analyst Upgrades and Institutional Buying

Northland raised its price target on NOK to $13 from $10, citing accelerating AI optical connectivity demand. Bank of America upgraded the stock to “buy” with a $12.40 target earlier in April.

The stock currently holds a “Moderate Buy” consensus from 17 analysts, with 10 buy ratings, 6 holds, and 1 sell. The average price target sits at $8.83, though several recent targets have moved above that level.

On the institutional side, Calamos Advisors increased its NOK position by 28.1% in Q4 to roughly 1.95 million shares. Millennium Management grew its holdings by over 6,500% in Q1, adding nearly 2.8 million shares. Goldman Sachs added just over 1 million shares in Q1, bringing its total to 12.55 million.

Nokia also raised its quarterly dividend to $0.0468, up from $0.04. The annualized dividend of $0.19 represents a yield of approximately 1.8%, with a record date of April 28 and payment on May 12.

Management flagged semiconductor supply constraints and elongated order cycles as near-term risks. Fixed Networks sales fell 13%, a result of deliberate portfolio pruning.

Short interest in NOK rose approximately 24% in April to around 68.2 million shares, though the days-to-cover ratio remains low at 0.7.

Nokia’s market cap stood at approximately $60 billion as of Friday’s close, with a P/E ratio of 65.29.

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