NOK Stock Jumps After Strong Earnings—Could Nokia Be 2026’s 5G Winner?

Nokia’s NYSE-listed American depositary shares (ticker : NOK) surged to their highest level since 2022 last week after the Finnish network-equipment giant delivered a decisive third-quarter 2025 beat and raised guidance. Strong Q3 2025 headline numbers • Net sales grew 9 % year over year, powered by double-digit gains in Optical Networks as hyperscale data-center clients raced to add AI capacity. • Adjusted EPS landed at $0.07 versus the $0.06 Wall Street consensus, marking a second straight quarterly beat. • Management lifted full-year 2025 operating-profit guidance to €1.7 billion–€2.2 billion, citing “an AI super-cycle” that is driving fresh orders across mobile and fixed networks. Why the stock is moving NOK stock rallied more than 11 % on the earnings day and has now climbed roughly 25 % month-to-date, outpacing both the S&P 500 Communication-Services Index and rival Ericsson. Momentum accelerated after Jefferies upgraded the shares to “Buy” on October 28, setting a Street-high $7 price target that implies a further 30 % upside from current levels around $5.40. Key drivers investors are watching 1. AI infrastructure tailwinds – hyperscalers and telecom carriers are boosting 800G and soon-to-launch 1.6 Tbit/s optical links, areas where Nokia holds double-digit market share. 2. Margin recovery – although gross margin slipped 70 basis points in Q3, management reiterated a 14 %+ long-term target as higher-margin software sales mix improves. 3. Cash returns – the board confirmed a €0.16 annual dividend (roughly 2.5 % forward yield) with an ex-dividend date of October 28, 2025, plus an ongoing €600 million buyback authorization. Valuation snapshot At 9× projected 2026 earnings and 0.6× sales, NOK trades at a sizable discount to network peers and many AI-hardware beneficiaries. Bulls argue the multiple fails to reflect Nokia’s patent-licensing cash cow and growing software subscription revenue, while bears highlight near-term carrier capex cuts in Europe and India. Price targets and sentiment • Average 12-month analyst target: $6.35, about 18 % above today’s quote. • Rating mix: 10 Buys, 5 Holds, 1 Sell. • TipRanks shows the highest bull case at $6.50 and a low estimate of $3.40. Should you buy NOK stock now? For investors seeking exposure to 5G upgrades and the emerging AI networking cycle at a value price, Nokia offers: • Consistent free-cash-flow generation and net-cash balance sheet. • A growing dividend with room for hikes once margins normalize. • Optionality from its prized 5G/6G patent portfolio, which brings in high-margin licensing fees. Risks include potential delays in 6G spectrum auctions, intensified price competition from Huawei and Ericsson, and currency headwinds as ~55 % of revenue is non-euro. Bottom line Search interest in “NOK stock,” “Nokia share price,” and “Should I buy Nokia stock” is heating up for good reason. With fresh analyst upgrades, a raised profit outlook, and a tangible AI catalyst, Nokia appears poised for a sustained re-rating—provided the company can turn top-line momentum into margin expansion over the next two quarters.