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NOK · Forward model · Optical Networks

What has to happen in Optical Networks

Model as of

This page changes Optical Networks inside the complete NOK model. Every other vertical, corporate programme and valuation assumption stays in the selected portfolio case.

NOK forward model
Horizon
Consolidated fair value €7.51 all other verticals held in this portfolio case
Final-quarter revenue €1.63B 25% of company revenue
Explicit segment contribution €2.57B EBITDA less segment capex, before corporate items

Optical Networks

Basis quarter€868M
Final quarter€1.63B
Implied CAGR+13%
Final revenue mix25%

Optical transport and data-centre interconnect - the line the AI and cloud build-out actually buys. Net sales grew 20% year on year on a constant-currency basis in 2026 Q2 and Nokia is adding US manufacturing capacity (San Jose fab ramping in Q4 2026, Pennsylvania test and packaging up 10x from Q3 2026, the NXP Chandler campus from 2027) specifically because supply, not demand, is the stated industry constraint.

Last four quarters
2025 Q3 €782M Reported
2025 Q4 €981M Reported
2026 Q1 €821M Estimated
2026 Q2 €868M Reported
Optical transport systemsData-centre interconnectOptical components
Sequential growth +4.4%/qtr decaying toward +2.0% Deseasonalised Q2'25-Q2'26 trend, 4.4%/qtr; cross-checks the disclosed +20% constant-currency year on year.
Optical Networks

Latest: €1.63B (2031Q2E)

Period Value
2025Q1 €525M
2025Q2 €730M
2025Q3 €782M
2025Q4 €981M
2026Q1 €821M
2026Q2 €868M
2026Q3E €906M
2026Q4E €1.11B
2027Q1E €982M
2027Q2E €1.02B
2027Q3E €1.06B
2027Q4E €1.29B
2028Q1E €1.13B
2028Q2E €1.17B
2028Q3E €1.21B
2028Q4E €1.46B
2029Q1E €1.28B
2029Q2E €1.32B
2029Q3E €1.36B
2029Q4E €1.64B
2030Q1E €1.44B
2030Q2E €1.48B
2030Q3E €1.51B
2030Q4E €1.82B
2031Q1E €1.59B
2031Q2E €1.63B

Assumptions & reasoning

  • Nokia has never published an Optical Networks operating margin. All three Network Infrastructure lines carry the parent segment's derived 12.74% trailing EBITDA margin, and the model differentiates their growth, which is disclosed, not their profit, which is not.
  • US fab capacity is a supply story with no disclosed unit capacity, revenue per port or utilisation, so a capacity driver would have had to invent all three denominators; growth is the only evidenced driver here.
  • 2026 Q1 is derived as first-half business-unit net sales less the disclosed second quarter: 1 689 - 868 = 821. The three Network Infrastructure lines so derived sum to the recast segment total of 1 829 to the euro.
  • The 4.4% quarterly rate deliberately excludes 2025 Q1, which carries only one month of Infinera (closed 28 February 2025); fitting the raw six quarters gives 10.6% a quarter, which is an acquisition, not a trend.
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