Summary
Nokia's Q2 2026 earnings exceeded the author's checklist, with optical strength confirmed, IP design wins converting to orders, component inflation within guidance, the San Jose fab on schedule, and a surprise new InP fab investment. This solidifies the thesis that Nokia is becoming a serious optical company, shifting its long-term growth profile toward optical components and fab capacity.
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•Author had a watchlist/checklist covering optical strength, IP order conversion, component inflation, and San Jose fab schedule; all items were confirmed as positive.
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•Nokia announced a new InP (Indium Phosphide) fab, which the author views as a game-changer that further strengthens the optical thesis.
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•The overall tone is bullish on Nokia's quarter, with the author stating bluntly it was 'a really good quarter.'
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•The article positions Nokia as a company to track and cover long-term, implying sustained focus on its optical and IP businesses.