Nokia beats Q3 profit estimates on AI and cloud demand boost
Nokia reported third-quarter profit on Thursday that exceeded market expectations, driven by strong demand for optical networks and cloud services, including AI-focused data center sales following its Infinera acquisition.
The Finnish telecom equipment maker posted a comparable operating profit of 435 million euros ($507 million), surpassing analyst expectations of 342 million euros. Net sales rose 12% to 4.83 billion euros, above forecasts of 4.6 billion euros, fueled by growth in Optical Networks and cloud services, News.Az reports, citing Reuters.
Nokia shares jumped 10.6% to 5.2 euros, their highest level since 2022, adding 3 billion euros to the company’s market value of 30 billion euros.
CEO Justin Hotard highlighted robust AI and data center demand, saying: “AI and data center demand continues to be robust. In fact, it continues to accelerate from our perspective.”
While Nokia has faced headwinds from U.S. tariffs, a weaker dollar, and North American market challenges, the company is now outperforming its Swedish rival Ericsson, reflecting strong investor confidence in its AI and optical business.
For the full year, Nokia expects operating profit between 1.7 billion and 2.2 billion euros, slightly higher than its previous forecast, due in part to changes in reporting venture fund results.
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