Shares of Nokia Corporation (Nokia (NOK)) are trading lower by 5.08% on Thursday as the company faces challenges despite a broader market that shows mixed performance.
Recently, Nokia announced a collaboration with Lockheed Martin Corporation (Lockheed Martin (LMT)) to enhance secure communications for U.S. and allied defense forces, a move that aligns with the Defense Department's open architecture standards. However, this initiative does not seem to have positively impacted investor sentiment today.
Nokia's partnership with Lockheed Martin aims to deliver a modular 5G capability for military vehicles, integrating Nokia's technology within the Department of War's framework. This collaboration is expected to close in the fourth quarter of 2026 and is not financially material to Nokia, which may be contributing to the stock's downward movement.
Recent Key Deals
In addition, the company agreed to offload its Fixed Wireless Access (FWA) CPE business to Inseego Corp. (NASDAQ:INSG). Nokia will take an approximately 11% stake in Inseego through stock and warrants, and make an additional $10 million investment. The companies plan joint initiatives in 6G, AI, and wireless edge technologies. The transaction is expected to close in the fourth quarter of 2026 and is not financially material to Nokia.
Counterpoint Research said the deal marks a strategic move that could significantly expand Inseego's scale, product reach, and global presence.
Nokia Earnings Snapshot
The Finnish company recently reported net sales of $5.26 billion (4.5 billion euros), up 4% year over year, but missed consensus estimates of $5.40 billion. EPS came at 6 cents, missing estimates by 3% but increasing 67% year-on-year.
The company's Network Infrastructure segment grew 6% year over year, driven by a 20% increase in Optical Networks sales. Mobile Infrastructure sales grew 3% year over year with strength in Core Software (up 5%) and Technology Standards (up 10%). Sales growth at Radio Networks remained flat.
For 2026, Nokia maintained its comparable operating profit outlook of $2.34 billion (2.0 billion euros) to $2.93 billion (2.5 billion euros).
Technical Analysis
Nokia's stock has shown impressive momentum over the past year, with a 12-month gain of 147.66%. Currently, the stock is trading well above its key moving averages, with the 20-day simple moving average (SMA) at $11.12, indicating a bullish trend. The Relative Strength Index (RSI) is at 77.32, suggesting that the stock is in overbought territory, which typically indicates a potential pullback could be on the horizon.
- Key Resistance: $13.98 — This level corresponds to the 52-week high reached in May, acting as a psychological barrier for traders.
- Key Support: $11.12 — This level aligns with the 20-day SMA, which could provide a cushion if the stock continues to decline.
Earnings & Analyst Outlook
Nokia Corporation is slated to provide its next financial update on July 23, 2026 (estimated).
- EPS Estimate: 7 cents (Up from 4 cents)
- Revenue Estimate: $5.62 billion (Up from $5.15 billion)
- Valuation: P/E of 80.4x (Indicates premium valuation)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $10.33. Recent analyst moves include:
- Argus Research: Upgraded to Buy (Target $15.00) (April 27)
- Morgan Stanley: Initiated with Overweight (Target $8.00) (Feb. 9)
- JP Morgan: Overweight (Raises Target to $8.00) (Dec. 1, 2025)
MarketDash Edge Rankings
Below is the MarketDash Edge scorecard for Nokia, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 39.5) — Trading at a steep premium relative to peers.
- Growth: Strong (Score: 70.06) — Indicates solid growth potential.
- Quality: Strong (Score: 76.8) — Balance sheet remains healthy.
- Momentum: Strong (Score: 96.36) — Stock is outperforming the broader market.
The Verdict: Nokia's MarketDash Edge signal reveals a strong momentum-driven story, supported by solid growth and quality scores. However, the value ranking indicates that the stock is trading at a premium, which could be a concern for value-focused investors.
Top ETF Exposure
- Defiance Quantum ETF (NASDAQ:QTUM): 1.72% Weight
- Defiance Connective Technologies ETF (NASDAQ:UFOX): 2.89% Weight
- First Trust Indxx NextG ETF (NASDAQ:NXTG): 1.60% Weight
Significance: Because NOK carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price Action
NOK Stock Price Activity: Nokia shares were down 5.04% at $12.53 at the time of publication on Thursday, according to MarketDash Pro data.
