Prime Highlights
- Nokia posts 18% profit jump to 434 million euros, beating analyst estimates.
- AI, cloud customer sales double to 446 million euros on strong demand.
Key Facts
- Justin Hotard leads Nokia’s data centre push, including Nvidia billion-dollar deal.
- Nokia raises full-year profit guidance to 2.1-2.6 billion euros range.
Background
Nokia reported a bigger than expected rise in quarterly comparable operating profit, boosted by strong demand from artificial intelligence and cloud customers, and expects the momentum to continue through the year.
Comparable operating profit rose 18 percent to 434 million euros in the second quarter of 2026, well above the 382 million euro average estimate from analysts polled by LSEG. Comparable net sales reached 4.82 billion euros for the quarter, also topping market estimates.
The Finnish telecom gear maker has been shifting its focus toward selling fibre-optic equipment to big tech companies building AI data centres. Net sales from AI and cloud customers doubled during the quarter to 446 million euros, as Nokia booked 2.8 billion euros in new orders.
CEO Justin Hotard said demand remains strong, while supply continues to be the main constraint across the industry, prompting customers to place longer-term orders.
Hotard, who joined Nokia last year after leading Intel’s Data Center and AI Group, has focused on expanding the company’s data centre business since taking charge, including striking a billion-dollar deal with chipmaker Nvidia.
The company was not entirely shielded from a sharp rise in memory chip prices, driven by AI companies securing large volumes of supply, which has also affected other telecom equipment makers.
Rival Swedish firm Ericsson warned last week that rising memory chip costs were pressuring its margins, a concern that weighed on investor sentiment toward the sector.
Nokia, however, raised its full-year comparable operating profit guidance to a range of 2.1 billion euros to 2.6 billion euros, up from its earlier range of 2 billion euros to 2.5 billion euros, reflecting confidence in continued AI and cloud-driven growth.
