Both Lumen Technologies and Nokia, large entities in the communications field, now speak of serving the burgeoning artificial intelligence sector. It is a fashionable direction, and one which naturally attracts the attention – and capital – of investors. The question, as always, is not merely where the money is being directed, but whether there is genuine prospect of return.
Recent stock performance suggests a degree of optimism on the part of the market. Lumen’s shares have risen approximately 80% over the past year, while Nokia has seen an increase of nearly 60%. Such figures are easily seized upon, but they offer little insight into the underlying health of either company. A rising tide, as the saying goes, lifts all boats – even those with leaks.
A closer examination reveals a distinct imbalance. Nokia, despite the inherent risks of any technological venture, appears the more solid proposition. The reasons are, regrettably, quite straightforward, and involve the basic principles of financial accountability.
The Matter of Revenue and Profit
Nokia, unlike Lumen, is currently experiencing revenue growth. In 2025, its revenue increased by 3% to 19.9 billion euros. Lumen, by contrast, saw its sales decline from $13.1 billion in 2024 to $12.4 billion in 2025, a consequence, it claims, of a strategic shift away from consumer services. Such shifts are often presented as evidence of foresight, but they rarely mask a contraction in core business.
The disparity extends to profitability. Nokia registered an operating profit of 885 million euros in 2025. Lumen, meanwhile, reported an operating loss of $812 million. Losses, even in the name of future growth, are a burden on shareholders, and a signal of mismanagement. To speak of ‘investment’ while consistently operating at a loss is, at best, disingenuous.
Furthermore, Nokia generated free cash flow of 1.5 billion euros in 2025, allowing it to maintain a dividend yield of 2%. Lumen, having eliminated its dividend in 2022, reported free cash flow of $371 million. The ability to return capital to shareholders is a sign of financial health, and a commitment to long-term value.
Beyond these figures, Nokia is demonstrating tangible progress in the AI arena. Its partnership with Nvidia, announced late last year, focuses on developing an AI-native wireless network. More recently, on February 19th, Nokia unveiled the world’s first 5G core software-as-a-service (SaaS) network, a cloud-based solution designed to accelerate 5G deployment. The use of AI in managing this network is, naturally, presented as innovative, but it is the underlying infrastructure that matters.
Lumen, for its part, has yet to demonstrate a comparable level of success. While it speaks of strategic shifts, the evidence of sustained growth remains elusive. To invest in a company based on promises of future transformation is, in many cases, simply a gamble disguised as analysis.
The choice, therefore, is clear. Nokia, despite the inherent uncertainties of the technology sector, presents a more solid foundation for investment. It is a company that generates revenue, reports a profit, and returns capital to shareholders. In an age of speculative excess, such qualities are, regrettably, becoming increasingly rare.
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2026-02-25 20:24