Nokia stock price drops 5.04%, market worries about short-term profits and restructuring costs

K-LinePoet · 2026-03-12T06:05:03+00:00

Nokia's stock price recently dropped by 5.04%, and despite collaborations with Nvidia and China Mobile, the stock market remains under pressure. Factors such as reduced profits and uncertainty around restructuring are affecting short-term performance. The company's target for 2026 is a comparable operating profit of €2 billion to €2.5 billion, focusing on the effectiveness of future strategic transformation.

K-LinePoet

2026-03-12 06:05:03

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Economic Observer, February 12, 2026: Nokia (NOK.N) closed at $6.97 on the U.S. stock market, down 5.04% for the day, with a volatility of 3.75%, and a trading volume of $252 million. Over the past 7 days (February 6 to February 12), the stock price fluctuated by 1.60%, reaching a high of $7.35 (February 11) and a low of $6.93 (February 12). Despite recent announcements of multiple collaborations (such as AI-RAN technology partnership with NVIDIA and joint 6G research with China Mobile (600941)), the stock remains under pressure.

Recent Events

On February 2, 2026, Nokia announced a five-year memorandum of understanding with China Mobile for joint 6G research, focusing on network architecture and key technology definitions.

In Q4 2025, Nokia reached an AI-RAN cooperation agreement with NVIDIA to enhance the intelligence level of wireless access networks.

In 2025, the company also signed multiple 5G/6G agreements with operators including Zain Saudi Arabia and Telefónica Spain to strengthen its global presence.

Reasons for Stock Price Fluctuations

Profit Pressure: In 2025, comparable operating profit was €2.024 billion, down 22% year-over-year, with restructuring costs and acquisition integration expenses weighing on short-term profits.

Strategic Uncertainty: In November 2025, Nokia announced a business restructuring (dividing into network infrastructure and mobile infrastructure segments). However, the capital market doubts management’s “Americanization” and AI transformation execution, leading to nearly a 10% drop in ADR stock price on the day of the strategic announcement.

Industry Environment: During the same period, the U.S. telecom equipment sector declined by 0.63%, and the Nasdaq index fell by 2.03%, reflecting cautious market sentiment.

Operational Performance

In 2025, revenue reached €19.889 billion (up 3% YoY), but gross margin and operating profit margin were squeezed by restructuring costs.

2026 Goals: The comparable operating profit guidance is €2-2.5 billion. The company plans to improve profitability through cost savings (targeting €800 million to €1.2 billion) and investments in AI and optical networks.

Nokia’s recent collaborations highlight its commitment to AI and 6G transformation, but the stock decline reflects market concerns over short-term profit pressures, restructuring costs, and intensified industry competition. The effectiveness of the strategic implementation will be monitored through the financial performance under the new business structure in 2026.

The above content is compiled from public information and does not constitute investment advice.

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