Nokia Oyj Faces Financial Headwinds Amid Currency and Tariff Challenges
In a significant development for the global communications giant, Nokia Oyj has announced a reduction in its profit forecasts for 2025, attributing the downward revision to adverse currency fluctuations and the impact of tariffs. This announcement has sent ripples through the financial markets, leading to a notable decline in Nokia’s stock price.
On July 22, 2025, Nokia disclosed that its underlying profit estimates had been adjusted due to the challenges posed by a weaker US dollar and stringent US tariff policies. The company now anticipates its adjusted operating profit to range between €1.6 billion and €2.1 billion for the year, a figure that has surprised analysts and investors alike.
The news has been echoed across various financial platforms, with reports highlighting the potential for a 4-8% drop in Nokia’s stock price. Analysts from Ålandsbanken and Handelsbanken have expressed concerns over the significant impact this profit warning could have on the company’s market valuation.
As of July 21, 2025, Nokia’s share price stood at €4.107, a stark contrast to its 52-week high of €5.035 recorded on March 31, 2025. The recent developments have further exacerbated the decline, with the stock experiencing a sharp drop to €3.88, marking a 5.32% decrease from the previous day’s closing price.
Nokia’s market capitalization, currently valued at €22.67 billion, reflects the broader challenges faced by the company in navigating the complex landscape of international trade and currency volatility. With a price-to-earnings ratio of 19.04, investors are closely monitoring the company’s ability to adapt to these external pressures.
As Nokia prepares to release its quarterly financial results on July 24, 2025, the market remains watchful. The company’s ability to manage these economic headwinds will be crucial in determining its financial trajectory for the remainder of the year.
In summary, Nokia Oyj’s recent profit warning underscores the significant impact of global economic factors on the telecommunications industry. As the company navigates these challenges, its strategic responses will be pivotal in shaping its future performance and market position.