**Summary of Nokia Corporation Financial Report for Q4 2025 and Full Year 2025**
Nokia Corporation released its financial report for Q4 2025 and the full year 2025 on January 29, 2026, highlighting steady performance and strategic progress amid industry challenges.
**Key Financial Highlights**
**Q4 2025 Performance**
Comparable net sales grew 3% year-over-year (YoY) on a constant currency and portfolio basis (+2% reported), driven by growth in Network Infrastructure and Mobile Networks.
Comparable gross margin expanded by 90 basis points (bps) to 48.1%, offset by lower contributions from Nokia Technologies. Reported gross margin declined by 120 bps to 44.9% due to restructuring charges.
Comparable operating margin decreased by 90 bps to 17.3%, while reported operating margin fell by 560 bps to 8.8% due to higher restructuring costs.
Comparable diluted EPS was EUR 0.16
reported diluted EPS was EUR 0.10.
Free cash flow was EUR 0.2 billion, with a net cash balance of EUR 3.4 billion.
**Full Year 2025 Performance**
Net sales grew 2% YoY on a constant currency and portfolio basis (+3% reported).
Comparable operating profit was EUR 2.0 billion, and free cash flow was EUR 1.5 billion (72% FCF conversion).
Comparable diluted EPS was EUR 0.29
reported diluted EPS was EUR 0.12.
Results were within Nokias prior guidance.
**Strategic Initiatives and Outlook**
Nokia strengthened its portfolio with the acquisition of Infinera and sharpened its focus on AI-driven network opportunities.
The company simplified its operating model into Network Infrastructure and Mobile Infrastructure segments from 2026.
Nokia introduced a 2026 financial guidance, targeting EUR 2.0 to 2.5 billion in comparable operating profit.
Long-term targets for 2028 include comparable operating profit of EUR 2.7 to 3.2 billion, with a focus on Network Infrastructure growth (6-8% CAGR) and Mobile Infrastructure profitability.
**Segment Performance**
**Network Infrastructure** 7% net sales growth in Q4, led by 17% growth in Optical Networks. Strong order intake driven by AI & Cloud demand.
**Mobile Networks** 6% net sales growth in Q4, with flat full-year performance. Focus on profitability and 5G technologies.
**Cloud and Network Services** Declined 4% in Q4 but grew 6% for the full year, with 5 points of operating margin expansion.
**Nokia Technologies** Maintained a contracted net sales run-rate of EUR 1.4 billion.
**Dividend and Shareholder Returns**
The Board proposed a dividend authorization of EUR 0.14 per share for 2025, with a EUR 0.03 per share dividend announced for Q4 2025.
**Future Focus**
Nokia aims to capture growth in AI & Cloud, increase efficiency, and build a high-performance culture.
Investments in AI-native networks, 6G, and partnerships (e.g., NVIDIA) position Nokia for long-term leadership.
**Risks and Challenges**
Competitive intensity, supply chain disruptions, inflation, and geopolitical uncertainties remain key risks.
Nokia is also focused on executing cost savings programs and integrating acquisitions effectively.
**Conclusion**
Nokias Q4 and full-year 2025 results reflect disciplined execution and strategic alignment with AI and cloud trends. The company is optimistic about its 2026 outlook and long-term growth potential, despite ongoing industry challenges. Detailed segment-level discussions are available in the complete financial report on Nokias website.