OUTLOOK

Full Year 2026 
Comparable operating profit(1),(2)EUR 2.0 billion to EUR 2.5 billion

1 Please refer to Alternative performance measures section in Nokia Corporation Interim Report for Q1 2026 for a full explanation of how this term is defined.

2 Outlook is based on a EUR:USD rate of 1.15 for the remainder of 2026.

The outlook and the underlying outlook assumptions are forward-looking statements subject to a number of risks and uncertainties as described or referred to in the Risk Factors section later in this release.

Along with Nokia's official outlook target provided above, Nokia provides the below assumptions that support the group level financial outlook for 2026.

Full year 2026Comment 
Q2 seasonalityNet sales: Nokia assumes a 5% to 9% q-o-q increase in net sales in Q2.

Comparable operating profit: Nokia assumes Q2 operating profit to account for between 12% and 16% of full year operating profit.		 
Network Infrastructure net sales growth(1)12 - 14%

(update)		This incorporates an assumption for combined IP and Optical Networks to grow 18-20% in 2026.
Comparable financial income and expensesPositive EUR 150 to 250 million

(update)		Nokia benefited from EUR 100 million in Q1 related to revaluations of financial investments, now added to the full year assumption.
Comparable income tax rate~26-27%Nokia's effective tax rate remains sensitive to geographic mix.
Cash outflows related to income taxesEUR 500 million 
Capital expendituresEUR 900 - 1 000 millionNokia expects higher capital expenditures in 2026 primarily related to investments in additional manufacturing capacity to support the growth outlook in Optical Networks. Nokia is also investing in real estate renewal projects impacting capex.
Free cash flow conversion from comparable operating profit55% to 75%FCF conversion will be influenced by customer payment timing, evolution of regional demand and capex timing.
Recurring gross cost savingsEUR 400 millionRelated to ongoing cost savings program and not including Infinera-related synergies.
Restructuring and associated charges related to cost savings programsEUR 250 millionRelated to ongoing cost savings program and not including Infinera-related synergies.
Restructuring and associated cash outflowsEUR 450 millionRelated to ongoing cost savings program and not including Infinera-related synergies.