Nokia (NOKIA.HE): Optical momentum builds alongside capacity investment progress; Neutral on valuation

Research evidence excerpt

Nokia (NOKIA.HE): Optical momentum builds alongside capacity investment progress; Neutral on valuation

Equity Research

27 July 2026 | 7:57AM BST

Nokia (NOKIA.HE): Optical momentum builds alongside capacity

investment progress; Neutral on valuation

Alexander Duval

+44(20)7552-2995 |

alexander.duval@gs.com

Goldman Sachs International

Anant Jakhar

+1(332)245-7829 |

anant.x.jakhar@gs.com

Goldman Sachs India SPL

Nokia reported 2Q revenue was in-line but comparable EBIT was 16% above Infront

Ayo Odunaiyaconsensus data. The company classified its Fixed Wireless Access CPE and Enterprise +44(20)7051-5995 |

Campus Edge business as discontinued ops. We note that had NOK not treated these ayo.x.odunaiya@gs.comGoldman Sachs International

as discontinued ops, sales would have been higher by €66mn but comparable EBIT

would have been €13mn lower. As such, Group net sales increased by 9% yoy in cc

and portfolio, driven by growth in Networks Infrastructure with Optical/IP Networks

growing 20%/16% yoy, respectively. Key takeaways include 1) AI and Cloud demand

continues to support Optical order momentum, 2) AI-RAN pilots on track as Nokia

scales internal AI adoption, 3) Optical capacity expansion progresses across Indium

Phosphide and packaging, and 4) Optical & IP design wins broaden customer

engagement, with revenue contribution building.

n AI and Cloud demand continues to support Optical order momentum: Nokia

highlighted continued strength in Optical, booking €2.8bn of orders from AI and

cloud customers during the quarter, up from €1.0bn in 1Q26, representing a

meaningful acceleration in demand. Importantly, management expects around

half of these orders to convert into revenue over the next 12 months, providing

improved near-term revenue visibility.