Nokia Corporation's Financial Performance and Market Position

• Earnings per share of $0.04 fell short of the estimated $0.07.
• Revenue of approximately $5.34 billion, surpassing the estimated $4.78 billion.
• Price-to-earnings (P/E) ratio is approximately 26.6, indicating investor valuation of earnings.

Nokia Corporation, listed on the NYSE under the symbol NOK, is a global leader in telecommunications and technology. The company is known for its network infrastructure, mobile networks, and cloud services. Despite its strong market presence, Nokia faces competition from other industry giants like Ericsson and Huawei.

On July 24, 2025, Nokia reported earnings per share of $0.04, which fell short of the estimated $0.07. This shortfall aligns with the company's announcement that its second-quarter operating profit and sales figures did not meet market expectations, as highlighted by Reuters. Despite this, Nokia generated revenue of approximately $5.34 billion, surpassing the estimated $4.78 billion.

Nokia's financial performance in the second quarter of 2025 was mixed. The company's comparable net sales declined by 1% year-over-year on a constant currency and portfolio basis, and by 2% when reported. This decline was primarily due to a 13% decrease in Mobile Networks, which had previously benefited from accelerated revenue recognition in the prior year. However, Network Infrastructure and Cloud and Network Services showed growth, increasing by 8% and 14%, respectively.

Nokia's financial ratios provide insight into its valuation and financial health. The company's price-to-earnings (P/E) ratio is approximately 26.6, indicating how much investors are willing to pay per dollar of earnings. The price-to-sales ratio stands at about 1.08, suggesting that investors are paying $1.08 for every dollar of sales. Nokia's enterprise value to sales ratio is around 1.06, reflecting the company's valuation in relation to its sales.

Nokia maintains a relatively low level of debt compared to equity, with a debt-to-equity ratio of 0.24. The company's current ratio is approximately 1.36, indicating a good level of liquidity to cover short-term liabilities. Additionally, Nokia's enterprise value to operating cash flow ratio is approximately 4.69, showing how the company's valuation compares to its cash flow from operations. With an earnings yield of about 3.76%, Nokia provides a return on investment relative to its earnings.