Nokia stock falls 3% ahead of Q2 earnings report
Nokia Corp. shares declined by more than 3% as investors await the company's Q2 and half-year 2026 financial report on July 23. The drop follows a weak earnings report from peer Ericsson, which warned of rising AI-related component costs. Analysts expect Nokia to report EPS of 7 cents and revenue of $5.59 billion, maintaining a consensus Buy rating. Technical indicators show the stock in a short-term correction but holding above long-term support.
*this image is generated using AI for illustrative purposes only.
Nokia Corp. stock fell more than 3% on Friday as investors reduced exposure to technology stocks during a broad market sell-off. The decline comes as the company approaches a key catalyst, with Nokia scheduled to report its second-quarter and half-year 2026 financial report on July 23, 2026. The report will be available at approximately 8 a.m. Finnish time (EEST) on the Nokia website, followed by an analyst webcast at 3:00 p.m. Finnish time (EEST). Investors are bracing for increased volatility as traders adjust positions ahead of the earnings release.
Sentiment was also dampened by recent developments in the telecom equipment sector. Ericsson reported weaker-than-expected second-quarter results and warned that surging demand for AI infrastructure is tightening memory chip supply and increasing costs for custom silicon and semiconductor components. CEO Börje Ekholm stated Ericsson is "not immune" to these inflationary pressures, with financial impacts expected to build over the coming quarters and into 2027. While Nokia has not issued similar guidance, investors are assessing whether comparable industry cost pressures could affect the company.
Earnings and Analyst Outlook
Wall Street expects Nokia to report earnings of 7 cents per share, up from 4 cents a year earlier. Analysts forecast revenue of $5.59 billion, compared with $5.15 billion in the prior-year quarter. The stock currently trades at about 65.1 times earnings. Analysts maintain a consensus Buy rating with an average price forecast of $14.67. Recent ratings actions include JPMorgan raising its price forecast to $21 with an Overweight rating, Argus Research upgrading to Buy with a $15 forecast, and Morgan Stanley initiating coverage with an Overweight rating and an $8 forecast.
Technical Picture
Nokia remains in a short-term correction, trading 19.5% below its 20-day simple moving average and 26.5% below its 50-day SMA. This signals that the recent downtrend remains intact. However, shares are still 12.7% above the 200-day SMA, suggesting the longer-term uptrend has not broken. Momentum indicators remain weak, with the moving average convergence/divergence (MACD) staying below its signal line. The key technical support level is $10.00.
Market Context
The broader market remained weak, contributing to the stock's decline. The Nasdaq dropped 1.85%, the S&P 500 declined 1.11%, the Dow Jones Industrial Average fell 1.05%, and the Russell 2000 lost 1.20%. Nokia shares were down 3.37% at $10.03 at the time of publication on Friday.
Will Nokia follow Ericsson's lead in warning about inflationary pressures from AI infrastructure costs during the upcoming earnings report?
Can Nokia sustain its current valuation of 65.1 times earnings if the broader technology sector continues to face sell-offs?
How might the divergence in analyst price targets, ranging from $8 to $21, influence investor sentiment ahead of the Q2 report?
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