Q2‘26 First Take: AI & Cloud orders off the charts. The lack of an FY26 upgrade may be a concern

Research evidence excerpt

Q2‘26 First Take: AI & Cloud orders off the charts. The lack of an FY26 upgrade may be a concern

J P M O R G A N Europe Equity Research

23 July 2026

Nokia Overweight

NOKIA.HE, NOKIA FH

Q2’26 First Take: AI & Cloud orders off the charts. The Price (22 Jul 26):€9.17

lack of an FY26 upgrade may be a concern Price Target (Dec-27):€18.00

Our Take: The key number in Nokia’s report was the AI and cloud orders of €2.8bn European Tech Hardware &

up from €1bn in the prior quarter. This figure is dramatically higher than any Payments

number we have heard from investors in the past quarter. The key question Sandeep Deshpande AC

investors will have is how much of the incremental €1.8bn of orders is ongoing, (44-20) 7134-5276

given that the company has previously said that the €1bn reported in 1Q was sandeep.s.deshpande@jpmorgan.com

ongoing orders. The concern investors may have with the report is likely to be why Craig A McDowell

Nokia has not raised guidance (excluding the restatement for disposals/ (44-20) 7742-4576

discontinued items) for 2026, especially as the company indicates that it expects craig.mcdowell@jpmorgan.com

half of the reported orders to convert to sales in the next 12 months. Nokia also beat Anthony Girard

(44-20) 3493-6469

on Q2 EBIT by 15.6% vs. Infront consensus. Shorter term, the company guided for anthony.girard@jpmorgan.com

3Q sales to increase 3-7% QoQ and operating profit flat, which is below consensus J.P. Morgan Securities plc

expectations. The 3Q disappointment should be seen in the context of 2Q beat and

the huge AI & Cloud order intake, especially given that Nokia’s management team Specialist Sales contact details:

is intent on guiding to beat. Scott Silver - Specialist Sales -

European TMT