Mission Statement, Vision, & Core Values of Nokia Oyj (NOK)

Understanding Nokia Oyj's (NOK) Mission Statement, Vision, and Core Values is crucial because these foundational documents map directly to the company's strategic focus-a focus that is currently navigating significant financial headwinds in 2025.

You're looking at a telecommunications giant whose revised full-year comparable operating profit outlook, as of July 2025, sits between €1.6 billion and €2.1 billion, down from earlier projections, largely due to an estimated €230 million negative impact from currency fluctuations, defintely a material risk for any investor.

Does a vision to be the leading innovator in end-to-end networks-a future where technology drives sustainable progress-justify the Q3 2025 comparable net sales growth of 9%, which brought in €4.83 billion in sales, and how does that core purpose translate into actionable investment decisions for you?

Nokia Oyj (NOK) Overview

Nokia Oyj is no longer just the old phone company you remember; it's a global technology giant focused on the infrastructure that powers the modern world-from 5G to the coming AI supercycle. The company, which traces its roots back to 1865, has successfully pivoted to become a leader in building wireless and fixed-line networks for communications service providers, governments, and enterprises.

Its business is structured across four key segments: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. For the trailing twelve months ending September 30, 2025, Nokia Oyj's total revenue stood at an impressive $21.594 billion. That's a significant operation.

• Mobile Networks: Radio access networks (RAN) and microwave transport.
• Network Infrastructure: Fiber, IP routing, and optical transport for data centers.
• Cloud and Network Services: 5G Core, private wireless, and network software.
• Nokia Technologies: Licensing of intellectual property (IP) and patents.

To be fair, the company's current focus is on providing the 'trusted connectivity' essential for the exponential growth of artificial intelligence (AI) and cloud services.

Q3 2025 Financial Performance: Growth Driven by AI and Cloud

The latest financial results for the third quarter (Q3) of 2025, reported on October 23, 2025, show that Nokia Oyj is executing well on its strategic shift, delivering revenue that beat analyst expectations. The company's reported sales for Q3 2025 were EUR 4.83 billion. This marked a strong 12% increase in reported revenue year-over-year.

The nine-month sales for 2025 reached EUR 13.764 billion, showing consistent performance. Here's the quick math on what drove the Q3 revenue surge: the core of the growth came from its Network Infrastructure business, which saw an 11% net sales increase. More specifically, the Optical Networks unit within that segment surged by 19%, primarily fueled by demand from AI and cloud service customers.

Plus, the Cloud and Network Services segment also delivered a solid 13% net sales growth, driven by strong momentum in 5G Core solutions. The company is defintely tracking well toward the midpoint of its full-year 2025 comparable operating profit guidance, which is set between EUR 1.7 billion and 2.2 billion.

A Leader in the AI Supercycle

Nokia Oyj is positioning itself not just as a participant, but as a leader in the next generation of network technology. The CEO has been clear: connectivity is the critical differentiator in the emerging AI supercycle. This focus is why the company recently secured a $1 billion investment from Nvidia Corporation, which is a massive vote of confidence in Nokia's strategic direction.

This partnership is all about developing 'AI-native' network systems, integrating Nokia's radio access network software with Nvidia's CUDA platform to accelerate 5G and 6G development. The company is actively gaining market share, even taking the number one position in Voice Core (excluding China) in the first half of 2025. If you're looking for a company that is successfully mapping its legacy expertise to the future of data and AI, you need to understand this pivot. To dig deeper into how the company transformed and where its revenue truly comes from, you can find more information here: Nokia Oyj (NOK): History, Ownership, Mission, How It Works & Makes Money.

Nokia Oyj (NOK) Mission Statement

You're looking for the bedrock of Nokia Oyj's long-term strategy, and that starts with the mission. The mission statement is more than just a marketing slogan; it's the filter through which every capital allocation decision and R&D dollar must pass. Nokia Oyj's mission is clear: create technology that helps the world act together. This isn't about selling phones anymore; it's a B2B focus on powering the digital backbone of the global economy. It's a simple, powerful statement that anchors their pivot toward network infrastructure, software, and licensing.

This mission dictates their strategic priorities, especially as the company navigates the AI-driven transformation of networks. For the 2025 fiscal year, this focus translated into a revised comparable operating profit guidance of between EUR 1.7 billion and 2.2 billion, demonstrating that the mission is directly tied to a profitable, focused business model. The strategy is to lead in connectivity, and that requires a defintely clear purpose.

Explore more about Nokia Oyj's journey and mission: Nokia Oyj (NOK): History, Ownership, Mission, How It Works & Makes Money

Delivering Cutting-Edge Telecommunications Infrastructure

The first core component of the mission is the commitment to delivering cutting-edge telecommunications infrastructure. This is the core engine of Nokia Oyj's business and where the majority of your investment thesis should sit. It means pioneering networks that can 'sense, think and act,' which is a fancy way of saying they are building AI-driven, autonomous, and programmable networks.

The numbers show this commitment is paying off, especially in high-growth areas. In the third quarter of 2025, the Network Infrastructure business group delivered an 11% net sales growth. Here's the quick math: demand for data center connectivity is spiking, and Nokia Oyj's Optical Networks unit is capturing that value, reporting a 19% growth in Q3 2025, largely driven by AI and Cloud customers. This segment is expected to continue its strong growth, with a target of 6-8% net sales Compound Annual Growth Rate (CAGR) from 2025-2028. That's a strong signal about where the capital is flowing and the quality of their product portfolio, including their 800G ZR/ZR+ coherent pluggables now generally available and shipping.

Accelerating Digital Transformation Globally

The second component is accelerating digital transformation globally, focusing on helping enterprises and webscalers (hyperscale cloud providers) move from traditional networks to modern, secure digital services. This is the shift from being a vendor to a strategic partner. The Cloud and Network Services (CNS) business group is the spearhead here, offering services like 5G Core and cloud-native solutions.

This focus is showing tangible results in market share and revenue. In Q3 2025, the CNS segment delivered a solid 13% net sales growth. Their cloud-native 5G Core offering is gaining traction, and they took the #1 market share position in Voice Core (excluding China) in the first half of 2025. Plus, with the integration of the acquired Infinera Corporation progressing well, the company is better positioned to serve the growing needs of AI and Cloud customers. This isn't just a vision; it's a measurable market-share grab in a crucial, high-margin space.

Developing Sustainable Technological Solutions

Finally, the mission is grounded in developing sustainable technological solutions. This isn't just corporate social responsibility (CSR); it's a financial risk-mitigation and opportunity-creation strategy. Customers, especially large enterprises and service providers, increasingly demand sustainable supply chains and energy-efficient networks. Nokia Oyj is committed to achieving net zero greenhouse gas emissions by 2040, which is a clear, long-term operational target.

This commitment translates into a competitive advantage. The company was ranked the #1 most sustainable telecoms and communications company in the world by Corporate Knights in January 2025, based on their rigorous assessment of over 8,000 companies. That's a powerful differentiator in competitive bids. The company helps its customers digitalize and decarbonize with their networking technologies, which maximizes their 'handprint'-the positive impact they have on the environment through their products. It's a smart business move, aligning their product development with global pressure for environmental, social, and governance (ESG) compliance. What this estimate hides, however, is the significant upfront investment required to hit the 2040 net zero target.

• Ranked #1 sustainable telecoms company globally.
• Committed to net zero emissions by 2040.
• Q3 2025 Free Cash Flow was EUR 0.4 billion.

Nokia Oyj (NOK) Vision Statement

You need a clear map of where Nokia Oyj is heading, especially as they pivot hard into the AI-driven network era. The core takeaway is simple: Nokia is fundamentally shifting its vision from just connecting people to connecting intelligence, a move that is reshaping their entire financial and operational model by the end of 2025.

As CEO Justin Hotard put it in November 2025, Nokia Oyj (NOK): History, Ownership, Mission, How It Works & Makes Money changed the world once by connecting people - and will again by connecting intelligence. That isn't just a marketing slogan. It's a direct response to the slowdown in traditional 5G spending, focusing the company on the massive, growing market for AI-native networks and 6G infrastructure.

This new vision is the lens through which we must view their financial targets and strategic priorities today. It's about moving up the value chain from pure hardware to intelligent, software-centric infrastructure.

The vision is to be the leading innovator in end-to-end networks, creating a future where technology enhances the human experience and drives sustainable progress for all. This ambition is directly tied to the 'AI supercycle,' which is the next wave of infrastructure spending driven by artificial intelligence and cloud computing. The company is betting on being the trusted Western provider of secure and advanced connectivity, a critical geopolitical advantage.

To deliver on this, Nokia is focusing on five strategic priorities, which are your near-term indicators of execution:

• Accelerate growth in AI & Cloud.
• Lead the next era of mobile connectivity with AI-native networks and 6G.
• Grow by co-innovating with customers and partners.
• Focus capital where Nokia can differentiate.
• Unlock sustainable returns.

Here's the quick math: Network Infrastructure is the engine here. Nokia targets a net sales Compound Annual Growth Rate (CAGR) of 6-8% for this segment between 2025 and 2028, with the high-margin Optical and IP Networks expected to expand at an even faster 10-12% rate. That's where the real value is being created, defintely.

Nokia's mission is to create technology that helps the world act together. This is the operational purpose-the 'how' of their vision. It means delivering resilient, superior performance across all critical network parts, from fixed access to optical transport, and doing so with high standards of security and sustainability. This mission is what guides their product portfolio and their customer relationships.

The commitment to sustainability is particularly important for large enterprise customers, and it's a measurable part of their mission. For example, by focusing on energy-efficient 5G solutions and network optimization, they help customers reduce their carbon footprint, which is a key decision point for major telecom operators. This mission is the bridge between their historical role as a connector of people and their future as a connector of intelligent machines.

A vision is only as good as the culture that supports it. Nokia's core values-Open, Fearless, and Empowered-are the behavioral framework for this strategic pivot. They are trying to shed the rigidity of their past, which is a necessary step for a company trying to innovate in a fast-moving space like AI infrastructure.

• Open: Open in mindset, to opportunity, with transparency. This supports their embrace of Open RAN (Radio Access Network) and open architectures that integrate seamlessly into any customer's ecosystem.
• Fearless: Bringing authenticity, sharing ideas and opinions, embracing collaboration. This is crucial for navigating integration risks, such as the one following the Infinera acquisition completed in Q1 2025.
• Empowered: To make decisions, to act with clear accountability. This value is being institutionalized by simplifying the operating model into two core divisions-Network Infrastructure and Mobile Infrastructure-starting in January 2026, which gives leaders more autonomy.

This cultural shift is what allows them to target a free cash flow conversion from comparable operating profit of 50% to 80% for the full year 2025. You can't hit those efficiency numbers without a highly empowered and accountable team.

As a realist, you must balance the grand vision with the immediate financial headwinds. The market is challenging, and it's impacting the bottom line right now. The full year 2025 comparable operating profit outlook was revised in October 2025 to a range of EUR 1.7 billion to 2.2 billion. This revision wasn't due to a change in the underlying business, but largely due to external factors.

What this estimate hides is the significant pressure from currency and tariffs. The weaker U.S. dollar is forecasted to have a negative impact of approximately EUR 230 million on operating profit, plus tariffs are expected to cost another EUR 50 million to EUR 80 million. That's a huge headwind, but the underlying business is still trending as expected, with Network Infrastructure showing strong growth.

The net cash balance of EUR 3,001 million as of Q3 2025 shows the company remains financially robust, giving them the capital to execute the vision. Your key action item is to monitor the Network Infrastructure segment's net sales CAGR and the operating profit contribution from Nokia Technologies, which is expected to be approximately EUR 1.1 billion for 2025. If Network Infrastructure hits the high end of its growth target, the vision is on track.

Nokia Oyj (NOK) Core Values

You're looking for the bedrock of Nokia Oyj's strategy, the principles that guide their capital allocation and innovation pipeline. As a long-time analyst, I can tell you that a company's true values are best seen in where they spend their money and what targets they set. For Nokia, their core values are now explicitly tied to their strategic priorities, focusing on the AI supercycle and network evolution, which is a smart, trend-aware move.

Nokia's mission is to create technology that helps the world act together, and their vision is to be the leading innovator in end-to-end networks. This is not just corporate fluff; it's a mandate for their operational decisions. Their guiding principles-what they call their core values-are now laser-focused on three areas that drive their financial performance and long-term value creation.

Innovation and Technology Leadership (AI & 6G)

Innovation is the lifeblood of any technology company, but for Nokia, it's a core value backed by a century of research at Nokia Bell Labs. This value means leading the charge on next-generation networking, specifically moving into AI-native networks and 6G. It's about being a B2B technology innovation leader.

Here's the quick math on their commitment: The new strategy, announced in November 2025, centers on accelerating growth in AI and Cloud and leading the next era of mobile connectivity. This focus is what drives their long-term financial targets. They are aiming for a comparable operating profit between EUR 2.7 billion and EUR 3.2 billion by 2028, a significant jump from the EUR 2.0 billion generated in the preceding 12 months. That growth is riding on their ability to innovate.

• Accelerate growth in AI & Cloud services.
• Lead the next era of mobile connectivity with AI-native networks and 6G.
• Continue long-term research through Nokia Bell Labs.

Honestly, the directed share issuance to NVIDIA Corporation in November 2025, which registered 166,389,351 new shares, is a concrete example of this value in action, cementing a strategic partnership around AI and advanced connectivity.

Customer-Centric Co-innovation

You can't lead a market from an ivory tower; you have to build solutions with your customers. This value, which they call 'Grow by co-innovating with customers and partners,' is about aligning their R&D (Research and Development) with real-world customer needs. It's a shift from just selling equipment to being a trusted partner in digital transformation.

The Network Infrastructure segment, which provides critical services like IP networks and optical networks, is a clear example of this value at work. They are targeting a net sales Compound Annual Growth Rate (CAGR) of 6-8% from 2025 to 2028 for this segment. This growth is fueled by strategic deals, like the one with AT&T to deploy next-generation fiber broadband in the US, and significant wins with webscale customers like Microsoft, CoreWeave, and Nscale. These aren't just transactions; they are deep, co-innovation partnerships. You can see more on the strategic implications by Exploring Nokia Oyj (NOK) Investor Profile: Who's Buying and Why?

Sustainable Performance and Value

For investors, 'sustainable' means two things: environmental, social, and governance (ESG) responsibility, and generating consistent, long-term financial returns. Nokia embraces both. Their commitment to high standards of security, sustainability, and ethics is a stated strength.

From a financial performance perspective, the value is about 'Unlock sustainable returns.' The company is focused on driving efficiency, targeting a reduction in Group Common and Other operating expenses to EUR 150 million by 2028, down from the current EUR 350 million run-rate. They also have a clear financial metric for this value: a free cash flow conversion from comparable operating profit target of between 65% and 75% by 2028. This is a defintely a key metric for any shareholder.

Even with the mid-year adjustment to the 2025 comparable operating profit outlook-revised to between EUR 1.6 billion and EUR 2.1 billion due to currency and tariff headwinds-the focus remains on cash generation, with the free cash flow conversion target for 2025 remaining at 50% to 80%. This commitment to cash flow and efficiency, plus the October 2025 dividend distribution of EUR 0.03 per share, shows their dedication to tangible shareholder value.