Shares of Finnish telecom giant Nokia fell 7% in early trading on Wednesday following a sharp profit warning that revised the company’s 2025 earnings expectations downward.
In an announcement released late Tuesday, Nokia lowered its full-year 2025 operating profit guidance to a range of 1.6 billion to 2.1 billion euros ($1.9 billion to $2.5 billion). This marks a significant drop from its previous forecast of 1.9 billion to 2.4 billion euros.
The company attributed the revised outlook to two external challenges that have emerged since it first issued guidance in January.
“Since Nokia provided guidance in January for the full year 2025, two headwinds outside its control are impacting the 2025 outlook,” the company said in a late Tuesday statement.
The primary concern is currency fluctuations, especially a weakening U.S. dollar, which Nokia said will have an estimated 230 million euro negative impact on its operating profit.
“The largest headwind is currency fluctuations (particularly the weaker USD), an approximately EUR 230 million negative impact …”
In addition, Nokia flagged that the current global tariff environment is expected to further reduce operating profit by between 50 million and 80 million euros, equivalent to a potential $94 million hit.
“Also, the current tariff landscape is expected to impact full year operating profit by EUR 50 million to EUR 80 million.”
The profit warning comes as telecom companies continue to grapple with macroeconomic volatility, trade tensions, and shifting foreign exchange markets — factors that could weigh heavily on global tech players in 2025 and beyond.
