Nokia Shares Hit 16-Year Peak on Strong Q1 Results Fueled by AI Demand

TLDR

• Nokia’s Q1 comparable operating profit saw a 54% increase, reaching €281M and surpassing analyst expectations.
• Net sales in AI and cloud experienced a 49% growth, with the company securing €1B in new orders during the quarter.
• Nokia has elevated its guidance for Network Infrastructure growth to 12–14% and for Optical+IP to 18–20%.
• The stock price for NOK reached its highest point since 2010, climbing nearly 7% in Helsinki trading.
• Analysts at Northland have raised their price target to $13, while Calamos, Millennium, and Goldman Sachs have all increased their holdings in the company.

(SeaPRwire) –   Nokia’s stock price reached a 16-year high following a robust first quarter, driven by a surge in AI and optical networking that led to results significantly exceeding forecasts.

Nokia Oyj, NOK

For Q1 2026, comparable operating profit was reported at €281 million, marking a 54% year-over-year increase and exceeding the analyst consensus of €250 million. Net sales totaled €4.5 billion, a 4% rise from the previous year.

Earnings per share (EPS) met the consensus estimate of $0.06. Revenue of $5.27 billion significantly surpassed the analyst forecast of $4.59 billion.

The stock experienced a nearly 7% increase in early Helsinki trading on April 23, reaching its highest valuation since April 2010. On the NYSE, NOK saw a 1.4% rise to $10.48 on Friday, with its 52-week range spanning from $4.00 to $10.90.

Net sales from customers in the AI and cloud sectors grew by 49% during the quarter. Nokia secured €1 billion in new AI and cloud orders, achieving a book-to-bill ratio exceeding 1.

AI Addressable Market Revised Sharply Higher

Nokia has revised its projection for the AI and cloud addressable market, now anticipating a compound annual growth rate of 27% from 2025 to 2028. This is an upward revision from the 16% growth rate previously indicated at an investor event in November 2025.

The company has increased its 2026 sales guidance for the Network Infrastructure segment to a growth rate of 12–14%, up from the earlier forecast of 6–8%. The outlook for the Optical and IP segment has also been enhanced to 18–20% growth.

Optical Networks demonstrated a 20% sales growth in Q1. The integration of Infinera is progressing ahead of schedule, and Nokia has introduced a new product roadmap that includes a multi-rail amplifier and modular optical engines.

CEO Justin Hotard stated that the company is “currently tracking somewhat above the mid-point” of its full-year comparable operating profit target, which is set between €2.0–2.5 billion.

A second indium-phosphide fabrication facility in San Jose is scheduled to commence operations later this year to boost optical capacity.

Analyst Upgrades and Institutional Buying

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

Currently, the stock holds a “Moderate Buy” consensus rating from 17 analysts, comprising 10 buy ratings, 6 holds, and 1 sell. The average price target is $8.83, although several recent targets have surpassed this level.

On the institutional front, Calamos Advisors increased its stake in NOK by 28.1% in Q4, acquiring approximately 1.95 million shares. Millennium Management significantly expanded its holdings by over 6,500% in Q1, adding nearly 2.8 million shares. Goldman Sachs purchased just over 1 million shares in Q1, bringing its total holdings to 12.55 million.

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

Management has identified semiconductor supply constraints and extended order cycles as potential near-term risks. Sales in the Fixed Networks segment decreased by 13%, attributed to a deliberate pruning of the portfolio.

Short interest in NOK saw an increase of approximately 24% in April, reaching around 68.2 million shares. However, the days-to-cover ratio remains low at 0.7.

As of Friday’s closing, Nokia’s market capitalization was approximately $60 billion, with a P/E ratio of 65.29.