Q1 2026 Nokia Oyj Earnings Call Transcript
Key Points
- Nokia Oyj (NOK) reported a 4% increase in net sales, reaching EUR4.5 billion for Q1 2026.
- The company achieved a gross margin expansion of 320 basis points, supported by strong performance in optical networks.
- Nokia Oyj (NOK) saw a significant 49% growth in net sales from AI and cloud customers, with EUR1 billion in new orders.
- The company introduced new products at OFC, including a next-generation hyperscale multi-rail solution, enhancing fiber capacity and density.
- Nokia Oyj (NOK) increased its growth assumptions for Network Infrastructure to 12%-14% and for optical and IP networks to 18%-20% for 2026.
- Fixed networks declined by 13% due to a strategic focus on higher-margin products, impacting overall sales.
- The company expects some gross margin headwinds throughout the year due to product mix changes.
- Mobile Infrastructure gross margins are expected to be weaker in Q2 and Q3, with stronger performance anticipated in Q4.
- Nokia Oyj (NOK) faces constraints in the semiconductor ecosystem, affecting supply chain dynamics.
- The company anticipates a seasonally low period for cash flow in Q2 due to employee cash incentives.
Good morning, ladies and gentlemen. Welcome to Nokia's first-quarter 2026 results call. I'm Devin Mulholland, Head of Nokia Investor Relations. Today, with me is Justin Hotard, our President and CEO, along with Marco Wiren, our CFO.
Before we get started, a quick disclaimer. During this call, we will be making forward-looking statements regarding our future business and financial performance, and these statements are predictions that involve risks and uncertainties. Actual results may, therefore, differ materially from the results we currently expect.
Factors that could cause such differences can be both external as well as internal operating factors. We have identified such risks in the Risk Factor section of our annual report on Form 20-F, which is available on our Investor Relations website.
Within today's presentation, references to growth rates will mostly be on a constant currency and portfolio basis, and other financial items will be relating to our comparable reporting. Please note that our Q1 report and the
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