Q1 Shortfall Sends Nokia Stock Reeling, Share Price Sinks Over 8%

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Profit Miss and US Tariff Warning Drive Nokia Stock Lower

Nokia’s stock suffered its worst drop in months after the Finnish telecom giant reported lackluster Q1 earnings and warned of potential financial headwinds from US tariffs. In response to the news, Nokia’s stock experienced a sharp sell-off, with shares plummeting 8.1% to 4.314. This significant drop positioned Nokia at the lowest point on the Euro STOXX 50 Index.

Nokia’s financial results for the initial three months of 2025 were lukewarm, with overall revenue experiencing a 3% decline compared to the same period in the previous year. This dip in top-line performance contributed to investor disappointment. However, some segments demonstrated resilience. The company’s mobile networks division managed to achieve a 2% increase in revenue, indicating some strength in this core area. Furthermore, Nokia’s network infrastructure group showed more robust growth, expanding by a notable 11%.

These areas of growth were overshadowed by other figures and forward-looking statements. The company suffered a net loss of €60 million in Q1. In contrast, 2024’s first quarter witnessed the company achieve a net profit of €438 million. Comparable operating profit also plunged by 74%, with the figure of €156 million being considerably lower than the anticipated €300 million.

According to J.P. Morgan, Nokia’s overall results fell short of analyst expectations, and the company attributed the miss in comparable operating profit to a specific one-time charge of €120 million within its mobile networks business. The transaction was triggered by the settlement of a project first initiated in 2019.

Adding to investor caution, Nokia issued a warning regarding the potential effect of US tariffs on its second-quarter earnings. The company estimated profit losses from these tariffs could range between €20 million and €30 million. This projected impact is primarily linked to the potential disruption of global supply chains stemming from the evolving tariff landscape. Despite the challenges and the looming issue of tariffs, Nokia maintained its full-year outlook for comparable operating profit, projecting gains from €1.9 billion to €2.4 billion.