Nokia's fourth-quarter operating margin fell to 8.8% due to restructuring charges and costs associated with the Infinera acquisition. Although net sales met expectations, comparable operating margin decreased. The company expects a cautious 2026, with a forecasted decline in net sales during the first quarter. This reflects ongoing challenges in the telecom equipment market.

Comparable gross margin beat analyst expectations, driven by a strong product mix. Nokia's Network Infrastructure segment saw growth, particularly in Optical Networks, fueled by demand from AI and cloud customers. However, the company is still integrating its recent acquisition and navigating a competitive market. The integration costs are a drag on profitability.

For 2026, Nokia anticipates comparable operating profit between €2 billion to €2.5 billion. The company aims for growth in Network Infrastructure. Nokia is streamlining its operations. The board proposed a €0.14 per share dividend. Investors will watch the integration of the China Huaxin joint venture.

Nokia's cautious outlook reflects the broader telecom industry's challenges. Competition is fierce, and the shift to 5G is ongoing. The company is betting on its Network infrastructure. Its ability to manage costs and deliver on its 2026 targets will be key for investors. The stock is down 3.74% in current trading.