Nokia Oyj's stock plummeted 7.42% during Thursday's intraday trading session. The sharp decline marks a significant pullback for the telecommunications company.

The sell-off is attributed to a technical correction following a sustained rally driven by the company's first-quarter 2026 results, which broadly exceeded market expectations. Nokia reported a 54% year-over-year surge in adjusted operating profit to EUR 281 million, significantly beating consensus estimates. Net sales grew approximately 3% to EUR 4.5 billion, while net income soared 245% to EUR 87 million. The company's AI and cloud business emerged as a core growth driver with revenue jumping 49%.

Following the strong earnings report, several major banks including JPMorgan and Morgan Stanley upgraded their ratings and price targets on Nokia. However, the subsequent rally pushed the stock to near 17-year highs, with the 14-day Relative Strength Index (RSI) approaching the 70 overbought threshold. The current decline reflects profit-taking pressure as investors lock in gains accumulated during the post-earnings surge.