Net sales

12 Months Ended

Dec. 31, 2025

Disclosure of disaggregation of revenue from contracts with customers [abstract]

Net sales

2.1. Net sales

Accounting policies

Nokia accounts for a contract with a customer when the

contract has been approved in writing, which is generally

when both parties are committed to perform their respective

obligations, the rights, including payment terms, regarding

the goods and services to be transferred can be identified,

the contract has commercial substance, and collection of the

consideration to which Nokia expects to be entitled is

probable. Management considers only legally enforceable

rights in evaluating the accounting for contracts with

customers. As such, frame agreements that do not create

legally enforceable rights and obligations are accounted for

upon issuance of subsequent legally binding purchase orders

under the frame agreements.

A contract modification or a purchase order is accounted for

as a separate contract if the scope of the contract increases

by additional distinct goods or services, and the price of the

contract increases by an amount that reflects the standalone

selling price of those additional goods or services. If the

additional goods or services are distinct but not sold at a

standalone selling price, the contract modification is

accounted for prospectively. If the additional goods or

services are not distinct, the modification is accounted for

through a cumulative catch-up adjustment.

Nokia recognizes revenue from contracts with customers to

reflect the transfer of promised goods and services to

customers for amounts that reflect the consideration to

which Nokia expects to be entitled in exchange for those

goods and services. The consideration may include variable

amounts, such as volume discounts and sales-based or

usage-based royalties, which Nokia estimates based on the

most likely amount. Nokia includes variable consideration into

the transaction price only to the extent that it is highly

probable that a significant revenue reversal will not occur.

The transaction price also excludes amounts collected on

behalf of third parties.

If the timing of payments provides either the customer or

Nokia with a significant benefit of financing, the transaction

price is adjusted for the effect of financing and the related

interest revenue or interest expense is presented separately

from revenue. As a practical expedient, Nokia does not

account for financing components if, at contract inception,

the consideration is expected to be received within one year

before or after the goods or services have been transferred

to the customer.

Nokia enters into contracts with customers consisting of any

combination of hardware, services and intellectual property.

Hardware and software sold by Nokia includes warranty, which

can either be assurance-type for repair of defects and

replacement of hardware recognized as a centralized

warranty provision, or service-type for scope beyond the

repair of defects or for a time period beyond the standard

assurance-type warranty period and considered as a separate

performance obligation within the context of the contract.

The associated revenue recognized for such contracts

depends on the nature of the underlying goods and services

provided. The promised goods or services in the contract

might include sale of goods, license of intellectual property

and grant of options to purchase additional goods or services

that may provide the customer with a material right. Nokia

conducts an assessment at contract inception to determine

which promised goods and services in a customer contract

are distinct and accordingly identified as performance

obligations.

The standalone selling price of each performance obligation is

determined by considering factors such as the price of the

performance obligation if sold on a standalone basis and the

expected cost of the performance obligation plus a

reasonable margin when price references are not available.

The portion of the transaction price allocated to each

performance obligation is recognized when the revenue

recognition criteria for that performance obligation have

been met.

Nokia allocates the transaction price to each distinct

performance obligation on the basis of their standalone

selling prices, relative to the overall transaction price. If a

standalone selling price is not observable, it is estimated. The

transaction price may include a discount or a variable amount

of consideration that is generally allocated proportionately to

all performance obligations in the contract unless Nokia has

observable evidence that the entire discount relates to only

one or more, but not all, performance obligations in a

contract. The amount of revenue recognized is the amount

allocated to the satisfied performance obligation based on

the relative standalone selling prices. A performance

obligation may be satisfied at a point in time or over time.

As described in Note 4.5. Trade receivables and other

customer-related balances, Nokia presents its customer

contracts in the statement of financial position as either a

contract asset or a contract liability, depending on the

relationship between Nokia’s performance and the

customer’s payment for each individual contract.

Sale of products

Nokia manufactures and sells a range of networking

equipment, covering the requirements of network operators.

Revenue for these products is recognized when control of the

products has transferred, the determination of which may

require judgment. Typically, for standard equipment sales,

control transfers upon delivery. For more complex solutions,

control generally transfers upon acceptance.

In some arrangements, mainly within the Submarine Networks

business which is presented as a discontinued operation and was

sold in 2024, Nokia’s performance does not create an asset with

an alternative use and Nokia recognizes revenue over time using

the output method, which faithfully depicts the manner in which

the asset is transferred to the customer as well as Nokia’s

enforceable rights to payment for the work completed to date,

including margin. The output measure selected by Nokia for each

contract may vary depending on the nature of the contract.

Sale of services

Nokia provides services related to the provision of networking

equipment, ranging from managing a customer’s network and

product maintenance services to network installation,

integration and optimization. Revenue for each separate service

performance obligation is recognized as or when the customer

obtains the benefits of Nokia’s performance. Service revenue is

recognized over time for managed and maintenance services, as

in these cases Nokia performs throughout a fixed contract term

and the customer simultaneously receives and consumes the

benefits as Nokia performs. In some cases, Nokia performs

services that are subject to customer acceptance where revenue

is recognized when the customer acceptance is obtained.

Sale of intellectual property licenses

Nokia provides its customers with licenses to intellectual

property (IP) owned by Nokia by granting software licenses and

rights to benefit from Nokia’s IP in their products. When a

software license is sold, revenue is recognized upon delivery or

acceptance of the software, as Nokia has determined that each

software release is distinct, and the license is granted for

software as it exists when the control transfers to the customer.

When Nokia grants customers a license to use IP owned by

Nokia, the associated license fee revenue is recognized in

accordance with the substance of the relevant agreements. In

the majority of contracts, Nokia retains obligations to

continue to develop and make available to the customer the

latest IP in the licensed assets during the contract term, and

therefore revenue is recognized on a straight-line basis over

the period during which Nokia is expected to perform.

Recognition of the revenue on a straight-line basis over the

term of the license is considered the most faithful depiction of

Nokia’s satisfaction of the performance obligation as the IP

being licensed towards the customer includes new inventions

patented by Nokia that are highly interdependent and

interrelated and created through the course of continuous

research and development (R&D) efforts that are relatively

stable throughout the year. In some contracts, Nokia has no

remaining obligations to perform after granting a license to the

initial IP, and licensing fees are non-refundable. In these cases,

revenue is recognized at the beginning of the license term.

Revenue disaggregation

Management has determined that Nokia’s geographic areas are

considered as the primary determinants to depict how the

nature, amount, timing and uncertainty of revenue and cash

flows are affected by economic factors. Nokia’s primary

customer base consists of companies that operate on a

country-specific or a regional basis. Although Nokia’s

technology cycle is similar around the world, different countries

and regions are inherently in a different stage of that cycle,

often influenced by macroeconomic conditions specific to those

countries and regions. In addition to Net sales to external

customers by region, the chief operating decision-maker, as

described in Note 2.2. Segment information, also reviews

Segment net sales by aggregated regions and Net sales by

customer type disclosed in this note.

Each reportable segment, as described in Note 2.2. Segment

information, consists of customers that operate in all

geographic areas. No reportable segment has a specific revenue

concentration in any geographic area other than Nokia

Technologies, which is included within Europe.

Net sales to external customers by region

Net sales to external customers by region are based on the

location of the customer, except for Nokia Technologies IPR and

licensing net sales which are allocated to Europe.

EURm	2025	2024	2023
Americas	6 985	6 276	6 779
Latin America	784	895	1 046
North America	6 201	5 381	5 733
APAC	4 639	4 549	6 436
Greater China	913	1 134	1 303
India	1 534	1 373	2 842
Rest of APAC	2 192	2 042	2 291
EMEA	8 265	8 395	7 923
Europe	6 165	6 362	5 873
Middle East & Africa	2 100	2 033	2 050
Total	19 889	19 220	21 138

Segment net sales by region

EURm	2025	2024	2023
Network Infrastructure	7 986	6 518	6 917
Americas	3 688	2 726	2 813
APAC	1 648	1 426	1 580
EMEA	2 650	2 366	2 524
Cloud and Network Services(1)	2 606	2 589	2 728
Americas	1 120	1 153	1 263
APAC	529	517	511
EMEA	957	919	954
Mobile Networks(1)	7 806	8 158	10 289
Americas	2 182	2 396	2 661
APAC	2 464	2 593	4 322
EMEA	3 160	3 169	3 306
Nokia Technologies	1 501	1 928	1 085
Group Common and Other(2)	(10)	27	119
Total	19 889	19 220	21 138

(1)In 2025, Managed Services business was moved from Cloud and Network Services

segment into Mobile Networks segment. Comparative financial information for

2024 and 2023 has been recast accordingly. Refer to Note 2.2. Segment

information.

(2)Includes eliminations of inter-segment revenues.

Net sales by customer type

EURm	2025	2024	2023
Telecom providers	15 313	15 085	17 652
AI & Cloud and Mission Critical Enterprise & Defense	3 085	2 180	2 282
Licensees	1 501	1 928	1 085
Other(1)	(10)	27	119
Total	19 889	19 220	21 138

(1)In 2025, includes eliminations of inter-segment revenues, unallocated items and

certain other items. In 2024 and 2023, includes net sales of Radio Frequency

Systems (RFS), which was managed as a separate entity, and certain other items,

such as eliminations of inter-segment revenues. RFS net sales also include

revenue from telecom providers and AI & Cloud and Mission Critical Enterprise &

Defense.

Order backlog

At 31 December 2025, the aggregate amount of the transaction

price allocated to partially or wholly unsatisfied performance

obligations arising from fixed contractual commitments

amounted to EUR 19.5 billion (EUR 20.0 billion in 2024).

Management has estimated that these unsatisfied performance

obligations will be recognized as revenue as follows:

	2025	2024
Within 1 year	57%	53%
2-3 years	28%	27%
More than 3 years	15%	20%
Total	100%	100%

The estimated timing of the satisfaction of these performance

obligations is subject to change owing to factors beyond Nokia’s

control such as customer and network demand, market

conditions and, in some cases, restrictions imposed by the

weather or other factors impacting project logistics. Revenue

recognized in the reporting period from performance

obligations satisfied (or partially satisfied) in previous periods

(for example, due to changes in transaction price) was not

material.