Nokia Oyj (NOK): History, Ownership, Mission, How It Works & Makes Money

When you hear Nokia Oyj (NOK), do you still picture a brick phone, or do you see a B2B powerhouse that pulled in a trailing twelve-month revenue of nearly $21.6 billion through Q3 2025? Honestly, the company's story is a masterclass in corporate reinvention, pivoting from consumer legend to a critical infrastructure provider in the global AI supercycle.

Their mission is now to create technology that helps the world act together, which translates into a laser-focus on high-margin segments like Network Infrastructure, where Optical Networks saw a 19% growth in Q3 2025, plus they are the defintely the market leader in 5G Standalone core deals. We'll break down how this Finnish giant, with a robust net cash balance of €3.0 billion, actually makes money today, and what that means for your investment thesis.

Nokia Oyj (NOK) History

You might think of Nokia Oyj as a mobile phone company that struggled, but its story is defintely much deeper. The company you see today-a B2B technology leader focused on network infrastructure-is the result of over 160 years of constant, sometimes brutal, reinvention. It started with a paper mill and, through a series of mergers and pivots, became the telecommunications giant you remember, only to transform again into a critical player in the 5G and AI-driven networking space.

Given Company's Founding Timeline

Year established

The company's origin dates back to 1865, when it was founded as a groundwood pulp mill.

Original location

The first mill was established near the Tammerkoski rapids in Tampere, Southern Finland. The company later moved its operations to the banks of the Nokianvirta river near the town of Nokia, which gave the company its name in 1871.

Founding team members

The primary founder was the mining engineer Fredrik Idestam. The later formation of the modern conglomerate involved other key figures like Leo Mechelin, who became chairman and pushed for electricity generation, and Eduard Polón, who founded Finnish Rubber Works.

Initial capital/funding

Initial funding came from Idestam's own resources to establish the first pulp mill. Expansion was later financed through partnerships, like the one with Leo Mechelin, which led to the formation of Nokia Ab in 1871.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's history isn't a straight line; it's a series of sharp, high-stakes turns. The most critical decisions involved cutting off entire business lines to chase new, higher-growth opportunities. That's the hard work of corporate survival.

Here's the quick math: the decision in 1992 to focus only on telecommunications turned a sprawling conglomerate into a global powerhouse in a decade. But that focus became a risk when the iPhone launched in 2007, and the company failed to adapt its Symbian operating system quickly enough to the smartphone era.

The most recent shift is all about the AI supercycle and the need for advanced connectivity. In November 2025, the company announced a new strategy and operating model to take effect in January 2026, targeting a comparable operating profit of EUR 2.7 to 3.2 billion by 2028.

The current strategy, which is showing results in 2025, is built on three pillars:

• Dominating 5G and 6G: Focusing on next-generation network standards and infrastructure.
• Expanding Enterprise Business: Targeting non-telco customers like data center operators and large industrial clients.
• Monetizing Intellectual Property (IP): The Nokia Technologies division is a high-margin business, expecting approximately EUR 1.1 billion in operating profit for the full year 2025 from licensing.

This focus is paying off in their Network Infrastructure segment, where Optical Networks, essential for moving massive AI-related data, saw double-digit growth in Q3 2025, contributing to a 9% year-over-year comparable net sales increase for the group. The company's net cash balance stood at a healthy EUR 3.0 billion at the end of Q3 2025. You can explore more about this shift and who is betting on it in Exploring Nokia Oyj (NOK) Investor Profile: Who's Buying and Why?

Nokia Oyj (NOK) Ownership Structure

Nokia Oyj operates as a widely held, publicly traded company, meaning its ownership is distributed among millions of individual and institutional investors globally, with no single entity holding a controlling stake.

This structure ensures a high degree of liquidity and subjects the company to rigorous public market scrutiny, but it also means management must balance the interests of a diverse shareholder base, from the Finnish state's holding company to massive US asset managers like BlackRock.

Nokia Oyj's Current Status

Nokia Oyj is a public limited company, or Oyj in Finnish, with its shares dual-listed on the Nasdaq Helsinki under the ticker NOKIA and as American Depositary Receipts (ADRs) on the New York Stock Exchange (NYSE) under the ticker NOK.

This public status makes the company subject to the financial regulations of both Finland and the United States, providing investors with a high level of transparency.

As of the 2025 fiscal year, the company's market capitalization is approximately $31.96 billion, reflecting its position as a key global player in telecommunications equipment and network solutions.

You can see how the company's strategy aligns with its core values in our deeper dive: Mission Statement, Vision, & Core Values of Nokia Oyj (NOK).

Nokia Oyj's Ownership Breakdown

The company's ownership is highly institutional, with a significant portion held by major asset managers and the Finnish state's investment arm. This institutional dominance means that major strategic decisions are heavily influenced by a few large, professional investors.

Here's the quick math: the top three shareholders alone account for over 14% of the company, which is a considerable block of votes in any public company.

The table below breaks down the major shareholder types and their ownership percentages as of September 30, 2025, which represents the latest available data for the 2025 fiscal year.

Nokia Oyj's Leadership

The company is steered by a Group Leadership Team (GLT) that is currently focused on a strategic pivot toward AI-driven network transformation and 6G technology, a key trend in the 2025 market.

The leadership team is responsible for executing the strategy to grow comparable operating profit to a range of EUR 2.7 to 3.2 billion by 2028.

The key leaders as of November 2025 include:

• Sari Baldauf: Chairwoman of the Board of Directors.
• Justin Hotard: President and Chief Executive Officer (CEO). He is leading the new Mobile Infrastructure segment on an interim basis.
• Marco Wirén: Chief Financial Officer (CFO).
• David Heard: President of Network Infrastructure, the segment positioned to capitalize on the global AI and data center build-out.
• Pallavi Mahajan: Chief Technology and AI Officer, a critical role given the company's new AI-centric strategy.

The GLT is undergoing changes to align with the new operational model, including new roles like Chief Customer Officer, effective January 1, 2026. Defintely a leadership team in transition.

Nokia Oyj (NOK) Mission and Values

Nokia Oyj's core purpose has shifted from connecting people with mobile phones to creating the digital backbone for the global economy, anchored by the mission to create technology that helps the world act together. This strategic pivot, driven by a culture of being Open, Fearless, and Empowered, focuses the company squarely on the massive infrastructure build-out of the artificial intelligence (AI) supercycle.

Nokia Oyj's Core Purpose

The company's cultural DNA and long-term aspirations are now laser-focused on being the trusted Western provider of secure and advanced connectivity. This isn't just a feel-good statement; it's the filter through which every capital allocation decision must pass, especially as they navigate the AI-driven transformation of networks.

Official Mission Statement

The mission statement is simple and powerful, reflecting the company's B2B (business-to-business) focus on powering the digital infrastructure instead of selling consumer devices.

• Create technology that helps the world act together.

This mission dictates their strategic priorities, like delivering resilient, superior performance across all critical network parts, from fixed access to optical transport, with high standards of security and sustainability. You can explore more about Nokia Oyj's journey and mission: Exploring Nokia Oyj (NOK) Investor Profile: Who's Buying and Why?

Vision Statement

Nokia Oyj's new vision, announced in November 2025, is a direct response to the slowdown in traditional 5G spending, focusing on the massive, growing market for AI-native networks and 6G infrastructure. CEO Justin Hotard put it plainly: Nokia changed the world once by connecting people-and will again by connecting intelligence.

• Connecting Intelligence: The New Vision for the AI Supercycle.

Here's the quick math on their commitment: The Network Infrastructure market is forecasted to grow from EUR 48 billion in 2025 to EUR 60 billion in 2028, and Nokia Oyj is targeting a 6-8% net sales Compound Annual Growth Rate (CAGR) for this segment during that period. That's a strong signal about where the capital is flowing, defintely.

To execute this vision, the company has five strategic priorities, which are your near-term indicators of execution:

• Accelerate growth in AI & Cloud.
• Lead the next era of mobile connectivity with AI-native networks and 6G.
• Grow by co-innovating with customers and partners.
• Focus capital where Nokia Oyj can differentiate.
• Unlock sustainable returns.

Nokia Oyj's Core Values (Essentials)

The company's culture is built on three core values, which they call their Essentials. These are the behavioral framework for the strategic pivot, helping to shed the rigidity of the past and innovate in the fast-moving AI space.

• Open: Be open in mindset to opportunity, evolving market needs, and new approaches.
• Fearless: Bring your authentic self to work, share ideas, and know that mistakes are okay as long as you learn from them.
• Empowered: Be supported to make decisions and own your work because you are trusted.

Nokia Oyj Slogan/Tagline

While the classic 'Connecting People' is still the most recognized tagline from their consumer past, the company's current strategic message is clear: it's about moving up the value chain from pure hardware to intelligent, software-centric infrastructure. The new strategic tagline is a simple, direct statement of their new ambition.

• Advancing connectivity to secure a brighter world.

This focus is already showing measurable results: the Cloud and Network Services (CNS) segment delivered a solid 13% net sales growth in Q3 2025, showing their shift to software-driven value is gaining traction. The company is now targeting an annual comparable operating profit in the range of EUR 2.7 to 3.2 billion by 2028. This is a business built on intelligence, not just hardware.

Nokia Oyj (NOK) How It Works

Nokia Oyj operates as a business-to-business technology innovator, primarily generating revenue by selling network equipment, software, and technology licenses to communication service providers (CSPs), enterprises, and government entities globally. Its core function is to build the foundational, high-performance infrastructure-both fixed and mobile-that powers the world's internet, data centers, and telecommunications networks.

Nokia Oyj's Product/Service Portfolio

As of November 2025, Nokia is strategically pivoting to a simplified operating model with two primary segments-Network Infrastructure and Mobile Infrastructure-to better align with the AI-driven network transformation, though reporting under this new structure begins in 2026. The provisional net sales for the twelve months ending Q3 2025 for these two core segments totaled approximately €19.4 billion (Network Infrastructure: €7.8 billion; Mobile Infrastructure: €11.6 billion).

Nokia Oyj's Operational Framework

Nokia's operational framework is centered on a high-R&D, high-capital expenditure model focused on developing intellectual property (IP) for next-generation network standards like 5G and 6G. This is a capital-intensive business, so managing costs while driving innovation is defintely crucial.

• R&D Focus: Heavy investment in future-proofing network technology, particularly in AI-native networks and 6G, to secure long-term licensing and equipment revenue streams.
• Supply Chain and Manufacturing: Operates a global supply chain for physical network equipment (e.g., radio units, routers), balancing cost-efficiency with geopolitical security concerns to maintain its position as a trusted Western provider.
• Software Monetization: Shifting towards software-centric solutions like Core Networks and Network as a Service (NaaS) to generate higher-margin, recurring revenue, moving away from purely hardware-driven sales.
• Strategic Portfolio Review: A dedicated Portfolio Businesses segment was created for non-core units (like Fixed Wireless Access CPE and Microwave Radio), which generated approximately €0.9 billion in net sales but an operating loss in the last twelve months, with a decision on their future expected by the end of 2026.

Nokia Oyj's Strategic Advantages

The company's strategic advantages stem from its deep technological heritage, global scale, and a critical pivot to capitalize on the AI supercycle, which requires massive network capacity. The full-year 2025 comparable operating profit guidance is a strong indicator of this core strength, projected to be between €1.7 and €2.2 billion.

• IP Licensing Powerhouse: The Technology Standards business, now part of Mobile Infrastructure, holds a vast portfolio of essential patents, generating an annual net sales run-rate of around €1.4 billion as of Q3 2025, providing a stable, high-margin cash flow.
• AI and Data Center Pivot: The Network Infrastructure segment is positioned to capture demand from the global AI and data center build-out, targeting a net sales Compound Annual Growth Rate (CAGR) of 6-8% from 2025 to 2028. This is a clear path to growth.
• Core Network Dominance: Holds a leading position in the 5G Standalone (SA) core market, with 125 operator customers and 54 live deployments as of Q2 2025, giving it a critical foothold in the most advanced mobile networks.
• Geopolitical Trust: Its Finnish and EU roots position it as a secure and reliable alternative to certain competitors, a major factor for governments and critical infrastructure operators.

For a detailed breakdown of the company's long-term vision, you should review the Mission Statement, Vision, & Core Values of Nokia Oyj (NOK).

Nokia Oyj (NOK) How It Makes Money

Nokia Oyj primarily makes money by selling advanced telecommunications network equipment and software to Communication Service Providers (CSPs) and enterprises, plus generating significant, high-margin revenue from licensing its vast patent portfolio.

You need to see Nokia not just as a hardware vendor but as a critical infrastructure and intellectual property (IP) powerhouse. Its revenue engine is split between capital-intensive network sales and highly profitable, software-like licensing fees.

Nokia Oyj's Revenue Breakdown

Looking at the Trailing Twelve Months (TTM) data ending September 30, 2025, Nokia's net sales of approximately €19.76 billion are distributed across four main segments. This breakdown shows where the core business strength lies and where growth is accelerating due to the AI supercycle.

Here's the quick math: Mobile Networks and Network Infrastructure together account for over 77% of sales, making them the lifeblood of the operation. Network Infrastructure, especially the Optical Networks unit, is seeing strong growth, up 11% year-over-year in Q3 2025, driven by demand from AI and cloud customers.

Business Economics

Nokia's economic model is a mix of high-volume, competitive hardware sales and high-margin, sticky software and IP licensing. This dual structure is key to understanding its profitability.

• Pricing Power: In Network Infrastructure, the book-to-bill ratio is currently running above 1 for Optical and IP Networks, meaning new orders are outpacing recognized revenue. This signals strong demand and gives Nokia some pricing leverage, especially in next-gen optical equipment needed for data center interconnects.
• High-Margin Licensing: The Nokia Technologies segment, which licenses the company's vast IP portfolio, operates at an extremely high margin. In Q3 2025, this segment reported an operating margin of 75.7%, making it the most profitable part of the business, with an annual net sales run-rate of approximately €1.4 billion.
• Software Monetization (Network as Code): The Cloud and Network Services segment is pivoting to a software-centric model called Network as Code (NaC). This platform allows Communication Service Providers (CSPs) to expose their 5G network capabilities through Application Programming Interfaces (APIs). Revenue is generated through a mix of wholesale, subscription, and usage-based pricing, often involving a revenue share with developers and CSPs. This is a defintely a high-growth area.
• Cost Discipline: The company is actively managing its cost base, with a plan to reduce Group Common and Other operating expenses from a current run-rate of approximately €350 million to around €150 million by 2028. This operational streamlining is designed to boost overall profitability.

If you want to dive deeper into the strategic intent behind these segments, you should read our piece on Mission Statement, Vision, & Core Values of Nokia Oyj (NOK).

Nokia Oyj's Financial Performance

As of Q3 2025, Nokia shows solid revenue growth but faces margin pressure, which is common in the competitive telecom equipment space.

• Net Sales and Profit: Net sales for the first nine months of 2025 were €13.76 billion. The full-year 2025 comparable operating profit is currently guided to be between €1.7 billion and €2.2 billion. This range reflects the volatility in customer capital expenditure and the product mix shift.
• Profitability Metrics: The comparable gross margin was 44.2% in Q3 2025, while the comparable operating margin was 9.0%. The slight decline in margins year-over-year is mainly due to an unfavorable product mix, where higher-volume, lower-margin hardware sales temporarily outweigh higher-margin software contributions.
• Balance Sheet Health: Nokia maintains a strong liquidity position. The net cash balance stood at €3.0 billion at the end of Q3 2025, with free cash flow for the quarter being a positive €0.4 billion. This strong cash generation gives them the flexibility to invest in AI-driven network R&D and pursue strategic acquisitions like Infinera, which closed in Q1 2025.

The core takeaway is that the company is effectively translating network demand into cash, even while managing short-term margin headwinds from product mix. Strong cash flow is a good sign.

Nokia Oyj (NOK) Market Position & Future Outlook

Nokia Oyj is fundamentally shifting its focus to capture the next wave of network evolution, moving from a traditional telecom equipment vendor to a leader in the AI-driven network transformation. This strategic pivot, announced at the Capital Markets Day 2025, positions the company to capitalize on the AI supercycle, aiming for a full-year 2025 comparable operating profit in the range of EUR 1.7 billion to 2.2 billion. This is a realistic target given the current market stabilization and the company's strong position in core network technologies.

Competitive Landscape

The Radio Access Network (RAN) market, Nokia's largest business, remains highly concentrated, with the top five suppliers accounting for 96% of worldwide revenues in the 1Q25-3Q25 period. While Huawei Technologies Co., Ltd. is the global leader, Nokia and Ericsson remain the dominant Western providers, competing fiercely for contracts outside of China. Nokia's Mobile Infrastructure segment generated a Trailing Twelve Months (TTM) revenue of €7.5 billion (Q4'24-Q3'25), underscoring its scale.

Opportunities & Challenges

The company's new strategy maps clear opportunities in the near-term, but it must navigate significant macroeconomic and execution risks. The core opportunity lies in the shift from 5G deployment to 5G monetization, which requires intelligent, software-centric infrastructure. Honestly, the biggest challenge is execution during a major internal re-organization. Exploring Nokia Oyj (NOK) Investor Profile: Who's Buying and Why?

Industry Position

Nokia is a major challenger in the global telecom equipment space, leveraging its intellectual property (IP) and Bell Labs research to maintain a technology edge in core network components.

• Core Networks Leadership: Nokia is ranked #1 for portfolio competitiveness in the Core Vendors - 2025 report, leading the 5G Standalone (SA) core market with over 125 Communication Service Provider (CSP) customers globally.
• Geographic Strength: The company is a top-three RAN vendor in key markets like North America and Europe, positioning it as a primary alternative to Huawei Technologies Co., Ltd.
• Financial Discipline: The company is focused on operational efficiency, targeting a reduction in centralized operating expenses to €150 million by 2028, down from a current run-rate of €350 million.
• Future Focus: The new operating model, effective January 1, 2026, is defintely designed to better align its Network Infrastructure and Mobile Infrastructure segments with the high-growth areas of AI, cloud, and 6G.