Nokia Shares Rise on Analyst Upgrade, Strong Q3 Momentum

Nokia (NOK) shares rallied 2.5% in pre-open trading Thursday, driven by an analyst upgrade that followed a strong third-quarter earnings report and positive strategic developments.

Analyst Upgrade and Earnings Beat

Finnish research firm IndeRes upgraded Nokia shares to Reduce from Sell and raised its price target to €7 from €6.5, according to a report from Investing.com. The firm cited Nokia's third-quarter adjusted operating profit, which surpassed both its own estimates and broader consensus forecasts.

The upgrade was underpinned by Nokia's Q3 results reported earlier in the week. Key figures include:

• Adjusted EPS: $0.10, beating the consensus estimate of $0.08.
• Revenue: $5.84 billion, ahead of the expected $5.72 billion.
• Year-over-Year Revenue Growth: 9.7%.

Strategic Outlook and Partnerships

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Following the earnings release, Northland Securities raised its full-year 2026 EPS estimate for Nokia to $0.42 from $0.40. Nokia's management also provided upbeat guidance, projecting fourth-quarter net sales to increase 20%–24% quarter-over-quarter and forecasting full-year operating profit to land above the midpoint of its outlook range.

Adding to the positive sentiment, Nokia and Nvidia announced that nearly 20 global telecom operators are now using or piloting their joint AI-RAN technology. Participants in the initiative include major carriers such as T-Mobile, BT, Deutsche Telekom, and Orange, signaling growing industry adoption of the AI-powered network solution.

Market Context

Other factors may be contributing to the stock's upward momentum. The company's ex-dividend date is October 27, which may have prompted some short-term dividend-capture buying. The move also occurred against a constructive backdrop for U.S. equities, with major indices showing modest gains in pre-market trading.