Nokia joins the tracked set today with fourteen quarters of history taken from its own 6-K filings and its Q1 2026 interim report. The most recent quarter, reported on 23 July 2026, is the one worth explaining on day one, because the Rule of 40 card moves 34 points and the revenue line has nothing to do with it.
The ladder, and the step off it
| Quarter | Revenue | YoY | FCF | FCF margin | R40 |
|---|---|---|---|---|---|
| 2024 Q2 | $4.81B | -22.6% | +$424M | +8.8% | -13.8 |
| 2024 Q3 | $4.75B | -12.4% | +$682M | +14.4% | +2.0 |
| 2024 Q4 | $6.39B | +4.1% | +$54M | +0.8% | +5.0 |
| 2025 Q1 | $4.62B | -8.8% | +$759M | +16.4% | +7.6 |
| 2025 Q2 | $5.15B | +7.2% | +$100M | +1.9% | +9.1 |
| 2025 Q3 | $5.64B | +18.7% | +$501M | +8.9% | +27.6 |
| 2025 Q4 | $7.13B | +11.5% | +$263M | +3.7% | +15.2 |
| 2026 Q1 | $5.26B | +13.9% | +$736M | +14.0% | +27.9 |
| 2026 Q2 | $5.60B | +8.6% | -$851M | -15.2% | -6.6 |
Growth went from +13.9% to +8.6% — a 5.3-point give-back, and still the fifth consecutive quarter of growth in the dollar-converted series. The free-cash-flow margin went from +14.0% to -15.2%, a 29-point swing, and that is 85% of the move. Nokia turned EUR 629 million of free cash flow in the March quarter into negative EUR 732 million in the June quarter, on a revenue base that grew.
What the operating line says depends on which one you read
Nokia publishes two P&Ls in the same table, and in the June quarter they disagree about whether the company made money at all.
| June quarter 2026 | Reported | Comparable |
|---|---|---|
| Net sales | EUR 4 815M | EUR 4 815M |
| Gross margin | 44.6% | 46.0% |
| Operating profit | -EUR 50M | +EUR 434M |
| Operating margin | -1.0% | 9.0% |
| Diluted EPS | EUR 0.00 | EUR 0.07 |
The EUR 484 million gap is restructuring and associated charges, running faster than plan — Nokia raised its full-year restructuring assumption to EUR 800 million with this report. Both margin lines improved year on year: comparable gross margin +70bps, reported +60bps. The reported operating margin fell 430bps anyway. This site's series carries the reported figures, which is why the profit picture on the Nokia page is harsher than the one in the headline bullets of the release.
The order book is not the problem
Nokia booked EUR 2.8 billion of AI and cloud order intake in the quarter and said sales to those customers more than doubled — +105% year on year. Optical Networks grew 20% and IP Networks 16%, carrying Network Infrastructure to EUR 2 037 million, +12%. Management expects about half of the AI and cloud orders to convert to revenue over the next twelve months and said supply, not demand, is the industry's constraint.
That is the tension. The demand side is compounding and the cash side went backwards, because the cash cost of the reorganisation Justin Hotard announced at the November 2025 Capital Markets Day lands before the revenue it is meant to unlock. Net cash fell EUR 1 012 million in the quarter to EUR 2 776 million. Half-year free cash flow is negative EUR 104 million, against positive EUR 809 million in the same half of 2025.
Nokia's own guidance still assumes 55% to 75% free-cash-flow conversion from comparable operating profit for the full year, on comparable operating profit of EUR 2.1 to 2.6 billion. Take the midpoint of each and that is roughly EUR 1.5 billion of free cash flow for 2026, of which the first half delivered negative EUR 104 million. The second half has to carry all of it.
Two things to know about the numbers on this page
Nokia reports in euros and files with the SEC as a foreign private issuer — 20-F annually, 6-K for quarters — so there is no quarterly XBRL to reconcile against. Every figure in the series is parsed from the quarterly release itself and converted to US dollars at that quarter's average ECB reference rate. The June quarter's outflow of EUR 732 million becomes $851 million at 1.1629.
And the June quarter is the first on a narrower base: Nokia moved Fixed Wireless Access CPE and Enterprise Campus Edge into discontinued operations with this report and recast its own comparatives. The series here stores each quarter as it was reported at the time, so the 2025 quarters still include those businesses. The distortion is about 2% of revenue — smaller than the 8.6% growth it sits inside, but it is there.
The next print is 22 October 2026, for the September quarter. The question it answers is whether the June cash outflow was the timing of restructuring and working capital, as Nokia says, or the run rate.
