Nokia shares jump as Q2 profit beats estimates

Nokia reported second-quarter profit that exceeded analyst expectations on Tuesday, sending its shares up about 5% in early trading.

The Finnish telecom equipment manufacturer said net profit came in at €345 million ($395 million), above the €300 million consensus estimate compiled by Refinitiv. Revenue rose 3% year-over-year to €5.8 billion, also surpassing forecasts.

Strong demand for optical networking and fixed-network products drove growth in the company’s enterprise segment, which grew 8% year-over-year. The segment’s operating margin expanded to 12.4%, up from 10.1% a year earlier, reflecting improved efficiency and pricing power.

Nokia’s mobile networks unit, which supplies equipment to telecom operators, reported flat revenue but maintained stable margins. The company said it remains focused on expanding its 5G portfolio and securing new contracts in North America and Europe.

Analysts at Jefferies upgraded Nokia’s stock to a buy rating, citing the company’s resilient performance amid a challenging macroeconomic environment. The upgrade follows similar moves by other firms, including Morgan Stanley, which raised its price target to €5.50 from €4.80.

Nokia’s shares have gained roughly 15% over the past month, outperforming the broader European tech sector. The stock was trading at €4.90 in early European trade on Tuesday, up from Monday’s close of €4.67.

The company is scheduled to hold an earnings call with analysts on Wednesday to discuss its outlook for the second half of the year.