Key insights
- Nokia and Lockheed Martin launched a 5G defense solution for US and allied forces, integrating Nokia's 5G technology with the Department of War's open architecture. This collaboration aims to provide a hybrid network for mission-critical systems, potentially boosting efficiency and security in military operations. While positive for these companies, the direct impact on the broader US equity market is limited.
NEW YORK - Nokia Federal Solutions and Lockheed Martin announced Tuesday the launch of a modular 5G solution designed for U.S. and allied defense forces, according to a press release statement. Nokia, a prominent player in the Communications Equipment industry with $23.1 billion in revenue over the last twelve months, continues expanding its defense technology portfolio.
The solution integrates Nokia’s carrier-grade 5G technology within the Department of War’s open architecture framework, utilizing the Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, Reconnaissance/Modular Open Suite of Standards (CMOSS). The system enables military vehicles and platforms to use commercial-grade 5G in operational environments. The Finnish telecom giant maintains a healthy gross profit margin of 45% and holds more cash than debt on its balance sheet, providing financial flexibility for strategic defense initiatives.
The plug-and-play architecture aligns with CMOSS hardware and software module specifications, which the companies state reduces complexity and accelerates integration across vehicle and expeditionary systems. The standard is developed and maintained by the U.S. Army Combat Capabilities Development Command.
"Nokia recognizes the need to adapt our advanced technology portfolio to align with DoW-defined open systems," said Mike Loomis, president and chief executive officer of Nokia Federal Solutions.
The solution combines Nokia’s commercial 5G technologies with Lockheed Martin’s 5G.MIL solutions to create a hybrid network for mission-critical systems. Sarah Hiza, senior vice president for Technology and Strategic Innovation at Lockheed Martin, said the collaboration focuses on "rapidly delivering capability that can be deployed, sustained and trusted over the long term." Nokia shares currently trade at $6.26, with InvestingPro analysis suggesting the stock is undervalued relative to its Fair Value. Investors seeking undervalued opportunities can explore the most undervalued stocks list.
The announcement follows an initial collaboration between Nokia (NYSE:NOK) and Lockheed Martin (NYSE:LMT) announced in 2025, which introduced the integration of Nokia’s military-grade 5G solutions with Lockheed Martin’s Hybrid Base Station.
The CMOSS-aligned approach provides a pathway for NATO nations to incorporate commercial-grade 5G into allied platforms using a standardized, modular framework outside the U.S. With net income expected to grow this year and revenue expanding 4.3%, Nokia’s defense segment positions the company for continued expansion. InvestingPro offers 16 additional exclusive tips for Nokia, along with comprehensive financial health scores and Fair Value analysis to help investors make informed decisions.
Nokia Federal Solutions is the U.S. government-focused arm of Nokia.
In other recent news, Nokia has announced a multi-year 5G Radio Access Network deployment and modernization agreement with Virgin Media O2 in the United Kingdom. This collaboration will involve Nokia’s AirScale RAN portfolio, aiming to enhance the network’s efficiency, coverage, and capacity. Additionally, Nokia and Orange are partnering with NVIDIA to explore artificial intelligence radio access network technologies, focusing on improving network performance and energy efficiency. In another development, Nokia launched a new data center management system called Aurelis for Data Centers, which uses Passive Optical Network technology to significantly reduce active switches and power usage.
Nokia’s involvement in the European Commission’s meeting with tech and semiconductor firms highlights ongoing concerns about the EU’s competitiveness in these sectors. The meeting includes major industry players like ASML Holding NV and Siemens AG. Recently, Nokia’s stock has seen a significant rise, driven by increasing demand for AI-related infrastructure. These developments underscore Nokia’s active role in advancing telecommunications technology and infrastructure.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.