Nokia lowers cash-flow outlook despite rising AI and cloud demand

Nokia has reduced its 2026 free-cash-flow conversion assumption to a range of 35%–55% of comparable operating profit. This adjustment follows increased spending on working capital and restructuring costs, despite a 35% rise in comparable quarterly operating profit to €605 million.

The company reported a 10% increase in revenue to €5.154 billion, driven significantly by the artificial intelligence and cloud sectors. CEO Justin Hotard noted that AI and cloud sales grew by 123%, now representing 12% of group sales, with orders from these customers rising 118% to €1.5 billion.

To support growth through 2027 and secure supply, Nokia plans an additional €400 million investment in working capital this year. While the company maintained its annual comparable operating profit outlook of €2.1 billion–€2.6 billion, its New York-listed shares experienced volatility following the report.