Nokia Oyj’s First‑Quarter Performance Drives Share Price to a 16‑Year High

Nokia Oyj reported its interim first‑quarter results on 23 April 2026, showing a 54 % increase in operating profit to €281 million compared with the same period last year. Operating profit exceeded analyst expectations of €250 million. Net profit reached €87 million, and the company announced a 33 % dividend increase to €0.04 per share.

The results were underpinned by a 49 % rise in artificial‑intelligence (AI) revenue, reflecting stronger demand from data‑center and enterprise customers. Nokia’s AI‑driven networking solutions have become a key revenue driver, and the company reiterated its earnings guidance for the remainder of the year.

On the market, Nokia’s share price rose by approximately 6 % in early trading on 23 April, and subsequently surged 9 % to reach a 16‑year high of around €9.52 per share. The 52‑week high is now close to the current trading range, which is situated just below the 52‑week low of €3.419 recorded in July 2025.

Analyst Coverage

  • Nordea upgraded the rating to “buy (hold)” and set a target price of €10.5.
  • OP Corporate Bank and Inderes both maintained a “sell” recommendation, with target prices of €7 and €6 respectively.
  • Banco Sabadell downgraded the rating to “underweight (overweight)” but left the target price unchanged.

The divergent views illustrate that while the company’s financial results and AI strategy are strong, some analysts remain cautious about valuation multiples and future growth dynamics.

Dividend and Capital Allocation

The 33 % increase in dividend to €0.04 per share signals confidence in cash‑flow generation and a willingness to return value to shareholders. The dividend policy aligns with Nokia’s broader strategy to balance investment in AI and networking infrastructure with shareholder rewards.

Market Context

The share price rally coincides with Nokia’s broader communication‑equipment business, which is positioned to benefit from the ongoing digital‑transformation wave. The company’s market capitalization remains at €51.4 billion, and its price‑earnings ratio is 84.85, indicating a premium valuation relative to the broader information‑technology sector.

In summary, Nokia’s first‑quarter earnings, AI revenue growth, and dividend enhancement have propelled the stock to a multi‑year peak, though analyst sentiment remains mixed on the sustainability of the current price level.