Nokia lowers 2026 profit margin target

STOCKHOLM: Finnish telecom equipment maker Nokia said on Tuesday it had revised down its comparable operating margin target to at least 13% by 2026 from at least 14% previously, after losing a deal with a U.S. telecom carrier.

Nokia said it still sees a path to achieving the previous target, but considering current market conditions in its mobile networks business, it deemed the revision prudent.

The company took a hit after AT&T chose Ericsson to build a telecom network using a new cost-cutting technology called open radio access network (ORAN) that will cover 70% of its wireless traffic in the United States by late 2026.