Earnings call briefThird-quarter 2026
Nokia now expects Optical and IP Networks to grow 25% to 30% combined in 2027
Nokia said it now expects 2026 free cash flow conversion of 35% to 55%, as it plans to invest an additional EUR 400 million in working capital.
GetSignal Nokia Oyj NOK
President and CEO Justin Hotard said on the third-quarter call that Optical and IP Networks are now on track to grow somewhat above the 18% to 20% assumption given for the full year. Nokia also said it now expects restructuring charges of approximately EUR 1.1 billion in 2026, with restructuring and associated cash outflows of EUR 800 million to EUR 900 million. CFO Marco Wiren said there is no change to comparable operating profit guidance.
Quotes from the call
“Optical Networks and IP Networks are now on track to grow somewhat above the 18% to 20% assumption we provided for the full year. For 2027, we now expect these businesses to grow between 25% and 30% on a combined basis, reflecting the strength of the underlying market and our position to capture that demand.”
“Given the strength of the demand opportunity and the growth we now expect in 2027, we plan to invest an additional EUR 400 million in working capital compared to our expectations at the start of the year. As a result, we now expect free cash flow conversion for 2026 to be between 35% and 55%.”
Key facts from the call
- Optical and IP Networks 2027 growth outlook, combined
- 25% to 30%
- Expected 2026 restructuring charges
- approximately EUR 1.1 billion
- Expected 2026 restructuring and associated cash outflows
- EUR 800 million to EUR 900 million
- Expected 2026 free cash flow conversion
- 35% to 55%
Source: Nokia's third-quarter 2026 earnings call, October 22, 2026.
Written by GetSignal with AI from the company's earnings call.
Not investment advice.
More earnings call briefs
- Constellation Energy expects nuclear uprate costs of about $4.3 billion
CEG Constellation Energy Q3 2026 call
- Howard Hughes Holdings says its insurance ambition is a return on equity in excess of 20%
HHH Howard Hughes Holdings Q3 2026 call
- Brookfield Asset Management now sees 2026 earnings modestly below early view
BAM Brookfield Asset Management Q3 2026 call
- Enbridge says it expects 2026 results at the midpoint of its guidance range
ENB Enbridge Q3 2026 call
- TeraWulf sees about half of contracted IT capacity earning revenue by end of Q1
WULF TeraWulf Q3 2026 call
