Nokia Issues New Long-term Financial Target; To Operate With Two Primary Operating Segments

(RTTNews) - Nokia (NOK) introduced a new long-term financial target to achieve comparable operating profit of 2.7 billion to 3.2 billion euros by 2028, an increase from the 2.0 billion euros generated in the last 12 months. This is a separate long-term target for Nokia, and replaces Nokia's prior long-term targets to grow faster than the market, achieve a comparable operating margin of at least 13% and free cash flow conversion from comparable operating profit of 55% to 85%. Nokia targets 6-8% net sales CAGR during 2025-2028. This includes a 10-12% target for the combined Optical Networks and IP Networks.

Nokia said it is simplifying operational model into two primary operating segments of Network Infrastructure and Mobile Infrastructure. The new segments will be established from 1 January 2026. Nokia will begin reporting its financial results under the new segment structure beginning with its first quarter 2026 results.

Network Infrastructure segment will continue to be led by David Heard and consists of three business units Optical Networks, IP Networks and Fixed Networks. The new Mobile Infrastructure segment will bring together Nokia's Core Networks portfolio, Radio Networks portfolio and Technology Standards, formerly Nokia Technologies. It will be led by Justin Hotard on an interim basis and will consist of three business units Core Software, Radio Networks and Technology Standards.