Nokia Corporation (NYSE:NOK) stock is pulling back in premarket trading on Thursday after surging 10.27% to close higher on Wednesday.
Inseego To Acquire Nokia’s FWA Business
Inseego Corp. (NASDAQ:INSG) agreed Thursday to acquire Nokia’s Fixed Wireless Access (FWA) CPE business in a deal expected to nearly double its revenue and expand its global broadband footprint.
Nokia will take an approximately 11% stake in Inseego through stock and warrants, and make an additional $10 million investment. The companies plan joint initiatives in 6G, AI, and wireless edge technologies.
The transaction is expected to close in the fourth quarter of 2026 and is not financially material to Nokia.
The agreement reflects Nokia’s strategic shift to simplify its operational model and focus its portfolio on the infrastructure that powers the AI supercycle and AI-driven transformation of networks.
Nokia Earnings Snapshot
The Finnish company recently reported net sales of $5.26 billion (4.5 billion euros), up 4% year over year, but missed consensus estimates of $5.40 billion. EPS came at 6 cents, missing estimates by 3% but increasing 67% year-on-year.
The company’s Network Infrastructure segment grew 6% year over year, driven by a 20% increase in Optical Networks sales. Mobile Infrastructure sales grew 3% year over year with strength in Core Software (up 5%) and Technology Standards (up 10%). Sales growth at Radio Networks remained flat.
For 2026, Nokia maintained its comparable operating profit outlook of $2.34 billion (2.0 billion euros) to $2.93 billion (2.5 billion euros).
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $10.33. Recent analyst moves include:
- Argus Research: Upgraded to Buy (Target $15.00) (April 27)
- Morgan Stanley: Initiated with Overweight (Target $8.00) (February 9)
- JP Morgan: Overweight (Raises Target to $8.00) (December 1, 2025)
Nokia’s Weight in Defiance ETFs: What to Know
- Defiance Quantum ETF (NASDAQ:QTUM): 1.72% Weight
- Defiance Connective Technologies ETF (NASDAQ:SIXG): 2.89% Weight
Significance: Because NOK carries meaningful weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Price Action: Nokia shares were down 1.13% at $12.31 during premarket trading on Thursday. The stock is trading near its 52-week high of $12.59, according to Benzinga Pro data. Inseego shares were up 10.89% at $16.39 during premarket trading on Thursday.
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