Goodwill and intangible assets

12 Months Ended

Dec. 31, 2025

Intangible assets and goodwill [abstract]

Goodwill and intangible assets

4.1. Goodwill and intangible assets

Accounting policies

Intangible assets acquired separately are measured on initial

recognition at cost. Internally generated intangibles, except

for development costs that may be capitalized, are expensed

as incurred. Development costs are capitalized only if Nokia

has the technical feasibility to complete the asset; has an

ability and intention to use or sell the asset; can demonstrate

that the asset will generate future economic benefits; has

resources available to complete the asset; and has the ability

to measure reliably the expenditure during development.

The useful life of Nokia’s intangible assets, other than

goodwill, is finite. Following initial recognition, finite intangible

assets are carried at cost less accumulated amortization and

accumulated impairment losses. Intangible assets are

amortized over their useful lives, generally three years to

twelve years, using the straight-line method, which is

considered to best reflect the pattern in which the asset’s

future economic benefits are expected to be consumed.

Depending on the nature of the intangible asset, the

amortization charges for continuing operations are included

in cost of sales, research and development expenses or

selling, general and administrative expenses.

Goodwill is allocated to the groups of cash-generating units

that are expected to benefit from the synergies of the

related business combination and that reflect the lowest level

at which goodwill is monitored for internal management

purposes. A cash-generating unit, as determined for the

purposes of Nokia’s goodwill impairment testing, is the

smallest group of assets generating cash inflows that are

largely independent of the cash inflows from other assets or

groups of assets. The carrying values of the groups of cash-

generating units include their share of relevant corporate

assets allocated to them on a reasonable and consistent

basis. When the composition of one or more groups of cash-

generating units to which goodwill has been allocated is

changed, the goodwill is reallocated based on the relative

value of the affected groups of cash-generating units.

Nokia tests the carrying value of goodwill for impairment

annually. In addition, Nokia assesses the recoverability of the

carrying value of goodwill and intangible assets if events

or changes in circumstances indicate that the carrying value

may be impaired. Factors that Nokia considers when it

reviews indications of impairment include, but are not limited

to, underperformance of the asset relative to its historical or

projected future results, significant changes in the manner of

using the asset or the strategy for the overall business, and

significant negative industry or economic trends.

Nokia conducts its impairment testing by determining the

recoverable amount for an asset, a cash-generating unit or

groups of cash-generating units. The recoverable amount of

an asset, a cash-generating unit or groups of cash-generating

units is the higher of its fair value less costs of disposal and

its value-in-use. The recoverable amount is compared to the

asset’s, cash-generating unit’s or groups of cash-generating

units’ carrying value. If the recoverable amount for the asset,

cash-generating unit or groups of cash-generating units is

less than its carrying value, the asset is considered impaired

and is written down to its recoverable amount. Impairment

losses are presented in cost of sales, research and

development expenses or selling, general and administrative

expenses, except for impairment losses on goodwill, which

are presented in other operating expenses.

EURm	Goodwill	Intangible assets	Total
2025
Acquisition cost at 1 January	6 873	9 793	16 666
Additions	—	161	161
Acquisitions through business combinations(1)	833	1 111	1 944
Disposals and retirements	—	(14)	(14)
Translation differences	(596)	(607)	(1 203)
Acquisition cost at 31 December	7 110	10 444	17 554
Accumulated amortization and impairment charges at 1 January	(1 137)	(8 991)	(10 128)
Amortization	—	(521)	(521)
Impairment	—	(18)	(18)
Disposals and retirements	—	12	12
Translation differences	23	473	496
Accumulated amortization and impairment charges at 31 December	(1 114)	(9 045)	(10 159)
Net book value at 1 January	5 736	802	6 538
Net book value at 31 December	5 996	1 399	7 395
2024
Acquisition cost at 1 January	6 629	9 893	16 522
Additions	—	97	97
Acquisitions through business combinations	33	—	33
Assets held for sale	(38)	(170)	(208)
Disposals and retirements	(11)	(282)	(293)
Translation differences	260	255	515
Acquisition cost at 31 December	6 873	9 793	16 666
Accumulated amortization and impairment charges at 1 January	(1 125)	(8 807)	(9 932)
Amortization	—	(390)	(390)
Assets held for sale	—	165	165
Disposals and retirements	—	278	278
Translation differences	(12)	(237)	(249)
Accumulated amortization and impairment charges at 31 December	(1 137)	(8 991)	(10 128)
Net book value at 1 January	5 504	1 086	6 590
Net book value at 31 December	5 736	802	6 538

(1)In 2025, acquisitions through business combinations relates to the acquisition of Infinera. For more information, refer to Note 6.2. Acquisitions.

Net book value of intangible assets by type of

asset

EURm	2025	2024
Customer relationships	548	317
Patents and licenses	341	304
Technologies and IPR&D	269	12
Tradenames and other	98	51
Intangible assets under construction	143	118
Total	1 399	802

Weighted average remaining amortization

period

Years	31 December 2025
Customer relationships	11
Patents and licenses	7
Technologies and IPR&D	3
Tradenames and other	2

Goodwill

Nokia has allocated goodwill to its operating segments corresponding to groups of cash-generating

units (CGUs) that are expected to benefit from goodwill. Refer to Note 2.2. Segment information.

Allocation of goodwill

The following table presents the allocation of goodwill to groups of CGUs at 31 December:

EURm	2025	2024
Network Infrastructure	3 323	2 831
Cloud and Network Services(1)	440	559
Mobile Networks(1)	2 233	2 346

(1)In 2025, includes EUR 79 million of goodwill reallocation from Cloud and Network Services to Mobile Networks related to the

transfer of Managed Services

Recoverable amounts

The recoverable amounts of the groups of CGUs in 2025 were based on value-in-use that was

determined using a discounted cash flow calculation. The cash flow projections approved by

management were based on financial plans covering a forecast period of five years that reflects

management’s expectations of recovery from the market-driven mid-term decrease in sales and

market cyclicality, especially in the Mobile Networks segment and accelerated growth in Network

Infrastructure segment, followed by a five-year period that then converge to the steady state cash

flow projection modelled in the terminal year. The terminal growth rate assumptions do not exceed

long-term average growth rates for the industries and economies in which the groups of CGUs

operate.

The discount rates reflect current assessments of the time value of money and relevant market risk

premiums considering risks and uncertainties for which the future cash flow estimates have not been

adjusted. Discounted cash flow projections are based on post-tax cash flows and post-tax discount

rates, which do not materially differ from the pre-tax basis discounted cash flow projections.

Terminal growth rate and post-tax discount rate applied in the impairment test for the groups of

CGUs:

	Terminal growth rate		Post-tax discount rate
Key assumption %	2025	2024	2025	2024
Network Infrastructure	2.0%	1.5%	9.5%	9.4%
Cloud and Network Services	1.0%	1.5%	7.6%	8.0%
Mobile Networks	1.0%	1.0%	7.8%	8.4%

Other key variables in future cash flow projections include assumptions on estimated sales growth,

gross margin and operating margin. Sales growth and gross margin assumptions reflect

management expectations of addressable market growth, market share and competitive position,

as well as Nokia’s strategy and long-term business outlook. Gross margin and operating margin

assumptions include the impact of the ongoing efficiency, investment discipline and cost savings

initiatives, which are expected to reduce cost base and increase operational leverage throughout

the operating segments.

The results of the impairment testing indicate adequate headroom for each group of CGUs in 2025.