It’s Friday, the end of a long week, and I can’t always be relied upon to come up with new ‘insights’; sometimes others beat you to the punch. So, given there’s a long report/analysis about Nokia’s 2025 numbers to chew over in the stack below, I am handing over to industry veteran Sebastian Barros, busy on LinkedIn, good on Substack, with a smart take on the old Nokia/Ericsson narrative, comparing their 2025 records.
He writes: “Both delivered, but in different ways. Ericsson closed the year with roughly $22 billion of revenue, a 17% operating margin, nearly $6 billion in net cash, and launched its first buy-back worth about $2.3 billion – proving margins and cash can expand even while global RAN demand stays flat. Nokia exited 2025 with approximately €26 billion of revenue, but a much thinner margin of 9%, supported mainly by fixed network infrastructure, as mobile remained weak and margins were constrained.
“Markets reacted immediately. Ericsson shares jumped close to 9%; Nokia shares fell by about 5%, reflecting skepticism about near-term profitability despite a credible AI and optical strategy. Looking at 2026, the picture sharpens. Radio markets will stay flat, and telco capex remains tight. This looks less like a recovery year and more like a harsh Nordic winter. Ericsson is tightening cost discipline and protecting margins. Nokia is investing in fixed infrastructure and AI-driven networks that may take years to yield financial returns.”
Thoughts on a postcard.
James Blackmann
Executive Editor
RCR Wireless News
RCR Top Stories
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