Nokia profit rises as AI, data‑centre demand lifts sales
Nokia reported third-quarter results with group net sales up 12% to €4.83 billion for the quarter through September and profit above market expectations.
Growth was led by Optical Networks and cloud services. Nokia said customers focused on artificial intelligence and cloud accounted for about 6% of group net sales and roughly 14% of network infrastructure sales. Optical Networks revenue rose 19% on a constant‑currency basis.
Comparable operating profit for the quarter was €434 million, below some analyst forecasts. The company raised its full-year comparable operating profit guidance to a range of €1.7 billion to €2.2 billion, up slightly from a prior upper bound of €2.1 billion.
Comparable operating profit for the quarter was €434 million, below some analyst forecasts. The company raised its full-year comparable operating profit guidance to a range of €1.7 billion to €2.2 billion, up slightly from a prior upper bound of €2.1 billion.
Nokia said the guidance change reflects a new way of reporting results from its venture fund as it scales down passive investments.
Justin Hotard, who became CEO earlier this year after leading Intel’s data centre and AI group, described the market as being "at the front end of an AI supercycle, much like the 1990s with the internet," and said data centre demand "continues to accelerate" across large technology firms and smaller European players.
The results follow a period of headwinds for Nokia. The company issued a profit warning in July after U.S. tariffs, a market slowdown and a weaker dollar weighed on performance. Nokia also lost some ground in North America after a major carrier shifted business toward a competitor.
In September Nokia established a Technology and AI organisation led by Chief Technology and AI Officer Pallavi Mahajan to speed integration of AI into mobile and fibre network offerings. The company has been incorporating AI into radio access and optical products, marking a strategic shift since it sold its mobile handset business in 2013.
Justin Hotard, who became CEO earlier this year after leading Intel’s data centre and AI group, described the market as being "at the front end of an AI supercycle, much like the 1990s with the internet," and said data centre demand "continues to accelerate" across large technology firms and smaller European players.
The results follow a period of headwinds for Nokia. The company issued a profit warning in July after U.S. tariffs, a market slowdown and a weaker dollar weighed on performance. Nokia also lost some ground in North America after a major carrier shifted business toward a competitor.
In September Nokia established a Technology and AI organisation led by Chief Technology and AI Officer Pallavi Mahajan to speed integration of AI into mobile and fibre network offerings. The company has been incorporating AI into radio access and optical products, marking a strategic shift since it sold its mobile handset business in 2013.
