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Nokia Corporation NOK reported weaker-than-expected first-quarter 2025 results, with both bottom and top lines missing the Zacks Consensus Estimate. The company's top line decreased year over year, primarily owing to declining trends in the Nokia Technologies segment. However, healthy free cash flow and solid traction in the Network Infrastructure, Cloud and Network Services segments are positives.
NOK’s Net Income
Nokia reported a net loss of €60 million ($63 million) or a loss of €0.01 (a penny) per share in the first quarter against an income of €438 million or €0.08 in the year-ago quarter. Lower net sales from Nokia Technologies, one-time contract settlement costs in Mobile Networks and increased investment in long-term growth initiatives impacted profits.
Comparable profit was €153 million ($160.9 million) or €0.03 (3 cents) per share, down from €512 million or €0.09 in the year-earlier quarter. The bottom line missed the Zacks Consensus Estimate of 5 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Nokia Corporation Price, Consensus and EPS Surprise
Nokia Corporation price-consensus-eps-surprise-chart | Nokia Corporation Quote
NOK’s Revenues
Quarterly net sales were €4.39 billion ($4.61 billion), down 3% from €4.44 billion in the year-ago quarter. Healthy demand in multiple segments was offset by weakness in Nokia Technologies. Revenues missed the Zacks Consensus Estimate by $5 million.
Net sales from Network Infrastructure totaled €1.72 billion ($1.81 billion), up from €1.44 billion in the year-ago quarter. The top line beat our revenue estimate of €1.52 billion. At cc, IP Networks recorded 7% growth year over year, owing to strength in India, Japan and the region of North America, with healthy demand from enterprise and hyperscale customers. Revenues from Optical Networks improved 15% year over year on a cc basis, backed by healthy traction in North America region. Fixed Networks witnessed a 9% rise year over year at cc, driven by growing fixed wireless access deployments in India and increasing investments in North America.
Mobile Networks generated revenues of €1.73 billion ($1.82 billion), up 3% year over year on a reported basis and 2% at cc. Net sales beat our estimate of €1.67 billion. Healthy demand in North America and APAC partially compensated for the declining trends in the Europe, The Middle East and Africa regions.
Net sales from Cloud and Network Services were €567 million ($596 million), up 4% year over year on a reported basis and 8% on a cc basis. Growth in Core Networks primarily supported the top line in this segment. The top line in this segment missed our revenue estimate of €781 million.
Nokia Technologies contributed €369 million ($388 million) compared with €757 million in the year-ago quarter. Net sales declined 52% at cc. A €400 million catch-up payment drove the net sales in the year-ago quarter. The top line benefited from positive trends in the automotive, consumer electronics, multimedia and IoT space.
Region-wise, net sales from the EMEA region decreased to €1.844 billion from €2.293 billion in the year-earlier quarter. Growth in Network Infrastructure and Cloud Network and Services was offset by weakness in the Mobile Networks in this region. Revenues in the APAC region improved to €1.06 billion, up 12% at cc year over year, backed by growth in all three Networks businesses. Sales rose 73% at cc in India.
Americas witnessed 18% growth at cc to €1.48 billion. Strong growth in Optical Networks and IP Networks in the Network Infrastructure segment, along with double-digit growth in the Mobile Networks, led to higher revenues in the region.