Nokia shares rebounded nearly 6% to €7.77 on Monday after plunging almost 10% last week, as investors reassessed an earnings beat against weaker cash flow guidance, rising restructuring costs and a technical breakdown below key support.
Written by: Skerdian Meta • Monday, October 26, 2026 • 2 min read
• Last updated: Monday, October 26, 2026
Quick overview
- Nokia shares rebounded nearly 6% to €7.77 after a sharp decline of almost 10% last week, despite beating earnings expectations.
- The company’s revised free cash flow guidance raised concerns, dropping from 55%-75% to 35%-55%, alongside reported negative cash flow of €99 million.
- Restructuring costs significantly impacted profitability, with a 22% year-over-year decline in GAAP operating profit to €196 million.
- Analysts remain divided on Nokia’s outlook, with some maintaining a Hold rating while others see potential for growth, contingent on improved cash generation.
Nokia shares rebounded nearly 6% to €7.77 on Monday after plunging almost 10% last week, as investors reassessed an earnings beat against weaker cash flow guidance, rising restructuring costs and a technical breakdown below key support.
Nokia Stock Rebounds After Sharp Sell-Off
Nokia (NYSE: NOK) shares recovered from the €7.20 area to close at €7.77 on Monday, regaining part of the ground lost during Thursday’s sharp decline. The stock had plunged nearly 10% after the company released its third-quarter 2026 results, despite beating Wall Street expectations for revenue and adjusted earnings.
Adjusted earnings per share reached €0.102, exceeding the €0.070 consensus estimate, while revenue totalled €5.83 billion against forecasts of €5.73 billion.
However, the positive surprises failed to reassure investors, who focused instead on weaker cash flow expectations and mounting restructuring expenses. The broader market sell-off added pressure, with the S&P 500 falling 1.4% and the Nasdaq declining 2.2%.
Monday’s rebound suggests buyers are returning after the steep decline, but the recovery must be sustained before the broader technical outlook improves.
Free Cash Flow Guidance Raises Concerns
The biggest disappointment was Nokia’s revised full-year free cash flow conversion guidance, which was reduced to 35%–55% from the previous range of 55%–75%.
The company also reported negative free cash flow of approximately €99 million in the third quarter, raising questions about its ability to convert operating profits into cash while financing restructuring and expansion.
Nokia expects total restructuring charges to reach €1.1 billion in 2026. Management also plans to deploy another €400 million in working capital this year to secure supplies and prepare for anticipated growth in 2027.
These commitments increase near-term financial pressure, even as Nokia seeks to strengthen its position in networking, cloud computing and advanced infrastructure.
Investors will want evidence that these investments can support future growth without further weakening cash generation.
Restructuring Costs Pressure Profitability
Nokia’s reported GAAP operating profit fell 22% year over year to €196 million, reflecting €357 million in restructuring and integration costs.
By comparison, adjusted operating profit reached €605 million, highlighting the difference between the company’s underlying operating performance and reported profitability.
The gap has left investors questioning how quickly Nokia can complete its restructuring programme and whether improved operational efficiency will eventually translate into stronger cash flow.
Analyst sentiment remains divided. Bernstein maintained a Hold rating, while another firm reiterated a Buy rating with a $16 price target, reflecting differing views on whether the deterioration in cash generation is temporary or signals a more persistent challenge.
Nokia Stock Tests Technical Support
The sell-off pushed Nokia below €7.50 and through its 200-day simple moving average, which had provided support since July. The breakdown weakened the technical outlook and indicated that sellers had regained control.
The €7.30 area remains an important support reference following the recent decline. A sustained move below it could expose the stock to renewed selling, while Monday’s recovery to €7.77 places the €7.50 level back in focus.
Holding above €7.50 could help stabilise sentiment and encourage further buying. However, a failure to maintain the recovery could bring the recent lows back into focus.
Nokia Stock Outlook: Can Buyers Sustain the Rebound?
Nokia’s earnings beat and opportunities in cloud and advanced networking provide potential longer-term support. Nevertheless, the reduction in free cash flow guidance and substantial restructuring expenses remain significant concerns.
Monday’s 6% rebound offers relief after last week’s sharp decline, but the recovery alone does not resolve the underlying financial risks.
For the rally to continue, investors will need evidence that Nokia can improve cash conversion, control restructuring costs and translate demand for networking infrastructure into sustainable profitability. Until then, the stock remains vulnerable to renewed selling, particularly if it struggles to hold above the €7.50 area.
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank’s local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
