Financial assets and liabilities

12 Months Ended

Dec. 31, 2025

Disclosure of detailed information about financial instruments [abstract]

Financial assets and liabilities

5.2. Financial assets and liabilities

Accounting policies

Fair value

Fair value is the price that would be received to sell an asset

or paid to transfer a liability in an orderly transaction between

market participants at the measurement date. Financial

assets and liabilities measured at fair value are categorized

based on the availability of observable inputs used to

measure their fair value. Three hierarchical levels are based

on an increasing amount of judgment associated with the

inputs used to derive fair valuation for these assets and

liabilities, Level 1 being market values for exchange traded

products, Level 2 being primarily based on publicly available

market information and Level 3 requiring most management

judgment.

The fair value of an asset or a liability is measured using the

assumptions that market participants would use when pricing

the asset or liability, assuming that market participants act in

their economic best interest, by using quoted market rates,

discounted cash flow analyses and other appropriate

valuation models. Nokia uses valuation techniques that are

appropriate in the circumstances and for which sufficient

data is available to measure fair value, maximizing the use of

relevant observable inputs and minimizing the use of

unobservable inputs. At the end of each reporting period, all

financial assets and liabilities, that are either measured at fair

value on a recurring basis or for which fair values are

disclosed in the financial statements, are categorized within

the fair value hierarchy based on the lowest level input that is

significant to the fair value measurement as a whole.

Classification and measurement

Financial assets

Nokia classifies its financial assets that are debt instruments

in the following three categories: financial assets measured at

amortized cost, financial assets measured at fair value

through other comprehensive income, and financial assets

measured at fair value through profit and loss. The selection

of the appropriate category is made based on both Nokia’s

business model for managing the financial asset and on the

contractual cash flow characteristics of the asset. Equity

instruments and derivative financial assets are measured at

fair value through profit and loss.

Nokia’s business model for managing financial assets is defined

on a portfolio level. The business model must be observable on a

practical level by the way the business is managed. The cash

flows of financial assets measured at amortized cost are solely

payments of principal and interest. These assets are held within

a business model that has an objective to hold assets to collect

contractual cash flows. Financial assets measured at fair value

through other comprehensive income have cash flows that are

solely payments of principal and interest, and these assets are

held within a business model that has an objective that is

achieved both by holding financial assets to collect contractual

cash flows and selling financial assets. For these categories, a

loss allowance is calculated on a quarterly basis based on a

review of collectability (probability of default) and available

collateral (loss given default) for the asset, recorded as an

adjustment to the carrying amount of the asset and recognized

in other financial expenses in the income statement.

Financial assets measured at fair value through profit and loss

are assets that do not fall in either of the categories in the

paragraph above. Additionally, the accounting for financial assets

depends on whether the financial asset is part of a hedging

relationship (refer to Note 5.3. Derivative assets and liabilities).

All purchases and sales of financial assets are recorded on the

trade date, i.e. when Nokia commits to purchase or sell the

asset. All financial assets are initially measured at fair value and

subsequently remeasured according to their classification.

Subsequently, instruments classified as fair value through profit

or loss and instruments classified as fair value through other

comprehensive income are remeasured at fair value, while

instruments classified as amortized cost are remeasured using

the effective interest rate method. For instruments classified as

fair value through profit or loss, the fair value adjustments and

foreign exchange gains and losses are recognized in the income

statement either in other operating income and expenses or

financial income and expenses as determined by the purpose of

the instruments. For instruments classified as fair value through

other comprehensive income, changes in fair value are

recognized in the fair value reserve through other

comprehensive income (refer to Note 5.1. Equity).

For instruments classified as amortized cost, interest

calculated using the effective interest method, as well as

foreign exchange gains and losses, are recognized in financial

income and expenses in the income statement.

A financial asset is derecognized when substantially all the

risks and rewards related to the financial asset have been

transferred to a third party that assumes control of the

asset. On derecognition of a financial asset, the difference

between the carrying amount and the consideration received

is recognized in the income statement either in other

operating income and expenses or financial income and

expenses as determined by the purpose of the instrument.

The FIFO method is used to determine the cost basis of

financial assets at amortized cost that are disposed of.

Financial liabilities

Nokia classifies its financial liabilities as financial liabilities

measured at amortized cost except for derivative liabilities

and the conditional obligation related to Nokia Shanghai Bell,

which are classified as financial liabilities at fair value through

profit and loss.

All financial liabilities are initially recognized at fair value and,

in the case of borrowings and payables, net of transaction

costs. Financial liabilities are subsequently remeasured

according to their classification.

For financial liabilities measured at amortized cost, interest

calculated using the effective interest method, as well as

foreign exchange gains and losses, are recognized in financial

income and expenses in the income statement.

Financial liabilities are derecognized when the related

obligation is discharged, canceled or expired. Additionally, a

substantial modification of the terms of an existing financial

liability is accounted for as a derecognition of the original

financial liability and the recognition of a new financial liability.

On derecognition of a financial liability, the difference

between the carrying amount extinguished and the

consideration paid is recognized in financial income or

expenses in the income statement.

Fair value of financial instruments

	2025							2024
	Carrying amounts						Fair value(1)	Carrying amounts						Fair value(1)
		Fair value through profit or loss			Fair value through other comprehensive income(2)				Fair value through profit or loss			Fair value through other comprehensive income(2)
EURm	Amortized cost	Level 1	Level 2	Level 3	Level 2	Total	Total	Amortized cost	Level 1	Level 2	Level 3	Level 2	Total	Total
Non-current interest-bearing financial investments	368	—	—	—	—	368	377	457	—	—	—	—	457	466
Venture funds and similar equity investments	—	—	—	857	—	857	857	—	—	—	865	—	865	865
Other non-current financial assets	96	—	82	—	37	215	215	179	—	97	—	40	316	316
Other current financial assets	231	—	—	—	17	248	248	315	92	—	—	25	432	432
Derivative assets(3)	—	—	127	—	—	127	127	—	—	197	—	—	197	197
Trade receivables(4)	—	—	—	—	4 975	4 975	4 975	—	—	—	—	5 248	5 248	5 248
Current interest-bearing financial investments	323	—	638	—	—	961	962	486	—	1 175	—	—	1 661	1 661
Cash and cash equivalents	4 647	—	815	—	—	5 462	5 462	5 251	—	1 372	—	—	6 623	6 623
Total financial assets	5 665	—	1 662	857	5 029	13 213	13 223	6 688	92	2 841	865	5 313	15 799	15 808
Long-term interest-bearing liabilities	2 329	—	—	—	—	2 329	2 401	2 918	—	—	—	—	2 918	2 986
Other long-term financial liabilities	28	—	—	31	—	59	59	33	—	—	45	—	78	78
Short-term interest-bearing liabilities	1 084	—	—	—	—	1 084	1 083	969	—	—	—	—	969	969
Other short-term financial liabilities(5)	46	—	—	6	—	52	52	883	—	—	488	—	1 371	1 371
Derivative liabilities(3)	—	—	266	—	—	266	266	—	—	299	—	—	299	299
Discounts without performance obligations(4)	294	—	—	—	—	294	294	380	—	—	—	—	380	380
Trade payables	2 978	—	—	—	—	2 978	2 978	3 213	—	—	—	—	3 213	3 213
Total financial liabilities	6 759	—	266	37	—	7 062	7 133	8 396	—	299	533	—	9 228	9 296

(1)The following fair value measurement methods are used for items not carried at fair value: The fair values of long-term interest-bearing liabilities, including current portion, are primarily based on publicly available market information (level 2). The fair values of other assets

and liabilities, including loan receivables and loans payable, are primarily based on discounted cash flow analysis (level 2). The fair value is estimated to equal the carrying amount for short-term financial assets and financial liabilities due to limited credit risk and short time to

maturity.

(2)No financial instruments measured at fair value through other comprehensive income are categorized in fair value hierarchy level 1 or level 3.

(3)For further information on derivative assets and liabilities, refer to Note 5.3. Derivative assets and liabilities.

(4)For further information on trade receivables and discounts without performance obligation, refer to Note 4.5. Trade receivables and other customer-related balances.

(5)In 2024, other financial liabilities included a liability related to Nokia's share buyback program reflecting Nokia’s commitment under the agreement with a third-party broker conducting the share repurchases on Nokia’s behalf.

Financial assets

Interest-bearing financial investments

Nokia invests a portion of the corporate cash needed to cover

the projected cash outflows of its ongoing business operations

in highly liquid, interest-bearing investments. Interest-bearing

financial investments may include investments measured at

amortized cost and investments measured at fair value through

profit and loss.

Non-current interest-bearing financial investments are

investments in highly liquid corporate bonds that are long-term

in nature based on their initial maturity and are measured at

amortized cost using the effective interest method.

Current interest-bearing financial investments in bank deposits,

as well as fixed income and money market securities with an

initial maturity or put feature longer than three months, that

have characteristics of solely payments of principal and interest

and are not part of structured investments, are managed in a

portfolio with a business model of holding investments to

collect principal and interest and are measured at amortized

cost using the effective interest method. These investments are

executed with the main purpose of collecting contractual cash

flows and principal repayments. However, investments are sold

from time to time for liquidity management and market risk

mitigation purposes.

Current interest-bearing financial investments may also include

money market funds that do not qualify as cash equivalents,

investments acquired for trading purposes, investment

structures consisting of securities traded in combination with

derivatives with complementing and typically offsetting risk

factors and other investments that have cash flows not being

solely payments of principal and interest. These investments

are executed for capital appreciation and other investment

returns and can be sold at any time. These investments are

classified as fair value through profit or loss, with fair value

adjustments, foreign exchange gains and losses and realized

gains and losses recognized in financial income and expenses in

the income statement. The fair values of these investments are

based on publicly available market information.

Corporate cash investments in bank deposits used as collateral

for derivative transactions are measured at amortized cost

using the effective interest method.

Other financial assets

Other non-current financial assets include unlisted private

equity and unlisted venture fund investments, including

investments managed by NGP Capital which specializes in

growth-stage investing. These investments do not fulfill the

criteria of being solely payments of principal and interest and

they are classified as investments at fair value through profit

and loss. The fair value of these level 3 investments is

determined using one or more valuation techniques where the

use of the market approach generally consists of using

comparable market transactions, while the use of the income

approach generally consists of calculating the net present value

of expected future cash flows.

For unlisted funds, the selection of appropriate valuation

techniques by the fund managing partner may depend on the

availability and reliability of relevant inputs. In some cases, one

valuation technique may provide the best indication of fair value

while in other circumstances multiple valuation techniques may

be appropriate.

Inputs generally considered include the original transaction

price, recent transactions in the same or similar instruments,

completed or pending third-party transactions in the underlying

investment or comparable issuers, subsequent rounds of

financing, recapitalizations or other transactions undertaken by

the issuer, offerings in the equity or debt capital markets, and

changes in financial ratios or cash flows, adjusted as

appropriate for liquidity, credit, market and/or other risk

factors. The fair value may be adjusted to reflect illiquidity and/

or non-transferability, with the amount of such discount

estimated by the managing partner in the absence of market

information.

Level 3 investments are remeasured at each reporting date

taking into consideration any changes in estimates, projections

and assumptions, as well as any changes in economic and other

relevant conditions. These investments include approximately

50 separate venture funds investing in hundreds of individual

companies in various sectors and geographies, focusing on AI,

data infrastructure, digital health, software and enterprise

sectors.

Hence, specific estimates and assumptions used in the absence

of observable inputs do impact the fair value of individual

investments, but no individual input has a significant impact on

the aggregated fair value of level 3 investments.

Fair value adjustments, foreign exchange gains and losses, and

realized gains and losses from the disposal of these

investments are recognized in financial income.

From time to time Nokia may have investments in listed equity

shares classified as level 1 investments. These are exchange

traded products with quoted prices readily and regularly

available from an exchange representing actual and regularly

occurring market transactions on an arm’s length basis.

Other non-current financial assets also include restricted assets

and other receivables, customer financing-related loan

receivables (refer to Note 4.5. Trade receivables and other

customer-related balances) and certain other financial assets of

a long-term nature.

Restricted assets and other receivables include restricted bank

deposits primarily related to employee benefits as well as other

loan receivables measured at amortized cost using the effective

interest method.

The cash flows of certain other financial assets of a long-term

nature do not fulfill the criteria of being solely payments of

principal and interest. These investments are measured at fair

value using quoted market rates, discounted cash flow models

or other appropriate valuation methods as of the reporting date.

Fair value adjustments, foreign exchange gains and losses, and

realized gains and losses from the disposal of these investments

are mainly recognized in financial income and expenses.

Other current financial assets include the current part of other

non-current financial assets as well as short-term loan

receivables measured at amortized cost using the effective

interest method.

Cash and cash equivalents

Cash and cash equivalents include cash at bank and in hand as

well as highly liquid, fixed income and money market

investments that are readily convertible to known amounts of

cash with maturities at acquisition of three months or less, as

well as bank deposits with maturities or contractual call periods

at acquisition of three months or less. Due to the high credit

quality and short-term nature of these investments, there is an

insignificant risk of change in value. Investments in money

market funds that have a risk profile consistent with the

aforementioned criteria are also classified as cash equivalents.

Investments that have cash flows that are solely payments of

principal and interest are measured at amortized cost using the

effective interest method whereas all other investments are

classified as fair value through profit and loss, with fair value

adjustments and foreign exchange gains and losses recognized

in financial income and expenses. The fair values of these

investments are based on publicly available market information.

Financial liabilities

Interest-bearing liabilities

Interest-bearing liabilities are measured at amortized cost using

the effective interest method. Long-term and short-term

interest-bearing liabilities include issued bonds and other

borrowings. Short-term interest-bearing liabilities also include

the current portion of long-term interest-bearing liabilities and

collaterals for derivative transactions.

Other financial liabilities

In 2024, other financial liabilities included a liability related to

Nokia's share buyback program.

In 2024, other financial liabilities also included a liability related

to a contractual arrangement Nokia entered into with China

Huaxin Post & Telecommunication Economy Development

Center (China Huaxin), the non-controlling shareholder in Nokia

Shanghai Bell (NSB), in 2017. The arrangement provided China

Huaxin with the right to fully transfer its ownership interest in

NSB to Nokia and Nokia with the right to purchase China

Huaxin’s ownership interest in NSB. To reflect this, Nokia

derecognized the non-controlling interest in NSB and

recognized a level 3 financial liability.

This financial liability was measured based on the expected cash

settlement with any changes recorded in financial income and

expenses. The measurement of the financial liability involved

estimation of the acquisition price and the distribution of

excess cash balances. Unobservable valuation inputs included

certain financial performance metrics of NSB. No individual

input had a significant impact on the total fair value.

Trade payables

Trade payables are carried at invoiced amount in the statement

of financial position. Trade payables include balances payable to

suppliers under reverse factoring arrangements with financial

institutions. The related payments are classified as cash flows

from operating activities (refer to Note 5.4. Financial risk

management).

Interest-bearing loans and other borrowings

All borrowings presented in the table below are senior unsecured and have no financial covenants.

					Carrying amount EURm(1)
Issuer/borrower	Instrument	Currency	Nominal (million)	Final maturity	2025	2024
Nokia Corporation	EIB R&D Loan	EUR	500	2/2025	—	500
Nokia Corporation	NIB R&D Loan	EUR	83	5/2025	—	83
Nokia Corporation	2.375% Senior Notes	EUR	292	5/2025	—	292
Nokia Corporation	2.00% Senior Notes	EUR	630	3/2026	630	624
Nokia Corporation	4.375% Senior Notes	USD	500	6/2027	418	458
Nokia of America Corporation	6.50% Senior Notes	USD	74	1/2028	63	71
Nokia Corporation	3.125% Senior Notes	EUR	500	5/2028	490	487
Nokia of America Corporation	6.45% Senior Notes	USD	206	3/2029	176	199
Nokia Corporation	4.375% Sustainability-linked Senior Notes(2)	EUR	500	8/2031	503	513
Nokia Corporation	NIB R&D Loan(3)	EUR	250	10/2032	250	100
Nokia Corporation	6.625% Senior Notes	USD	500	5/2039	417	455
Various Group companies	Other borrowings(4)				466	105
Total					3 413	3 887

(1)Carrying amount includes EUR 15 million of fair value losses (EUR 46 million in 2024) related to fair value hedge accounting relationships, including EUR 120 million of fair value

gains (EUR 137 million in 2024) related to discontinued fair value hedge accounting relationships that are amortized over the life of the respective senior notes.

(2)The bond has a one-time redemption premium at maturity of EUR 4 million in case Nokia does not meet its commitment to reduce its greenhouse gas (GHG) emissions (in tCO2e)

across its value chain (Scope 1, 2, and 3) by 50% between 2019 and 2030. This target is one of Nokia’s key sustainability targets and has been selected to be the Sustainability

Performance Target in Nokia’s Sustainable Finance Framework that enables the issuance of sustainability-linked financing instruments.

(3)The loan from Nordic Investment Bank (NIB) is repayable in two installments in 2031 and 2032.

(4)At 31 December 2025, other borrowings contained the M&A loan of EUR 399 million, which was drawn to acquire China Huaxin's ownership interest in Nokia Shanghai Bell (NSB).

The loan has been fully repaid during January 2026.

Changes in level 3 financial assets and liabilities measured at fair value

	2025		2024
EURm	Financial assets	Financial liabilities	Financial assets	Financial liabilities
1 January	865	(533)	779	(499)
Net (losses)/gains in income statement	(66)	(5)	40	(25)
Additions(1)	111	—	96	(13)
Deductions(1)	(52)	501	(45)	16
Transfers out of level 3	—	—	(5)	—
Other movements	(1)	—	—	(12)
31 December	857	(37)	865	(533)

(1)For level 3 financial assets, additions mainly include capital contributions to venture funds and deductions mainly include distributions from venture funds.

A net loss of EUR 70 million (net gain of EUR 17 million in 2024) related to level 3 financial instruments held at 31 December 2025 was

included in the profit and loss during 2025. In 2025, deductions in level 3 financial liabilities primarily relate to the purchase of China

Huaxin’s non-controlling ownership interest in NSB. Nokia had exercised its call option, outlined in NSB’s shareholders' agreement, in

2024, to initiate the process to become the sole shareholder in NSB. The purchase was completed in December 2025 with the cash

settlement amounting to EUR 501 million (the financial liability representing the estimated cash settlement was EUR 487 million in

2024).