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Investing.com -- Nokia stock fell on Wednesday after its capital markets day (CMD) delivered a sweeping internal overhaul, but didn’t announce the sort of new external deals some investors had been hoping for.
Shares in the Helsinki-based company fell 5% by 13:37 GMT, while its U.S.-listed stock tumbled more than 6% in premarket trading.
Nokia outlined a strategy built around artificial intelligence and a slimmer operating model, yet analysts noted the absence of fresh partnerships following recent high-profile moves with Infinera and Nvidia.
The Finnish group plans to split into two operating segments from 2026 — network infrastructure and mobile infrastructure — with the former positioned around AI and data-centre demand and the latter focused on core telecoms.
Alongside the structural changes, Nokia is targeting comparable operating profit of 2.7 billion euros to 3.2 billion euros by 2028, up as much as 60% from last year’s 2 billion euros.
The consensus currently sits at the low end of Nokia’s new profit range at 2.7 billion euros, according to Morgan Stanley.
Nokia aims to trim group operating expenses to 150 million euros by 2028 from 350 million euros, while driving free-cash-flow conversion to between 65% and 75%.
Management highlighted that the network infrastructure division should deliver 6% to 8% net sales compound annual growth rate (CAGR) between 2025 and 2028, including a 10% to 12% growth target for optical networks and IP networks.
Mobile infrastructure is expected to reach gross margins of 48% to 50% and lift operating profit from a base of 1.5 billion euros.
Nokia said it will also launch a new defence incubation unit to deliver secure connectivity to Western partners.
Shares came under pressure as expectations for bolder announcements ran ahead of the event.
Morgan Stanley analysts led by Terence Tsui described the day as one marked by “lots of internal changes/reorganisation, but … so far there are no new external strategic announcements/partnerships,” adding that this may lead to “some modest profit taking.”
Nokia will start reporting its financial results under the new structure beginning with its first quarter of fiscal 2026.