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Sep 30, 2025
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Nokia Q3 2025 Earnings Report
Nokia reported strong year-over-year revenue growth in Q3 2025, driven by all business groups, despite margin pressure from product mix.
Key Takeaways
Nokia's Q3 2025 results showed 12% reported revenue growth and 9% constant currency growth, with Optical Networks leading at 19%. While revenues increased, gross and operating margins declined due to unfavorable product mix in Mobile and Network Infrastructure.
Revenue grew 12% YoY, reaching €4.83B, with all business segments contributing.
Optical Networks led growth with a 19% increase, mainly from AI & Cloud customers.
Comparable gross margin fell 150bps to 44.2% due to product mix and weaker software in Mobile Networks.
Free cash flow was strong at €0.4B and net cash balance stood at €3.0B.
Revenue by Segment
Forward Guidance
Nokia revised its comparable operating profit guidance slightly upward due to accounting changes, and remains confident in achieving full-year targets.
Positive Outlook
- Comparable operating profit guidance revised to €1.7–2.2B
- Q4 expected to be slightly above normal seasonality
- Strong growth expected to continue in Network Infrastructure
- Cloud and Network Services projected to maintain growth
- Free cash flow conversion expected between 50–80% of operating profit
Challenges Ahead
- Margins remain under pressure from product mix
- Change in venture fund reporting reduces prior comparability
- Mobile Networks expected to remain largely stable, limiting upside
- Global macro uncertainty and component supply risks persist
Historical Earnings Impact
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Avg. Return Before/After Earnings
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