Finnish telecom and networking equipment maker Nokia reported stronger-than-expected third-quarter earnings for 2026, powered by surging demand for AI and cloud infrastructure data center networking equipment.
Key Financial Highlights (Q3 2026):
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Comparable Operating Profit: Rose significantly to €605 million ($680.20 million) up from €448 million a year earlier, comfortably beating the average analyst estimate of around €453 million.
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Net Sales: Increased 10% year-on-year to €5.15 billion, topping consensus estimates of €5.05 billion.
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Comparable Operating Margin: Expanded by 220 basis points to 11.7%, driven by strong revenue growth and improved operating efficiency.
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Earnings Per Share (EPS): Reported a comparable diluted EPS of €0.09.
Growth Drivers: The AI & Cloud Surge
Nokia’s stellar performance was heavily anchored by its Network Infrastructure division, which saw sales jump 15% on a constant-currency basis:
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IP Networks & Optical Networks: IP Networks surged by 43%, while Optical Networks climbed 18%.
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AI & Cloud Customers: Sales directed toward AI and cloud customers skyrocketed by 123%, with order intake from these high-growth segments jumping 118% year-on-year.
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Mobile Infrastructure: Posted a modest 5% growth, partly bolstered by revenue acceleration from the fourth quarter into Q3.
Full-Year Outlook
Despite reporting a dip in net profit under standard reporting metrics due to restructuring and integration charges (€357 million), Nokia reaffirmed its full-year 2026 comparable operating profit guidance of €2.1 billion to €2.6 billion.
Looking ahead to 2027, Chief Executive Officer Justin Hotard expressed strong confidence in the company’s momentum, projecting that Nokia’s combined Optical and IP Networks businesses will grow by 25% to 30%, heavily sustained by ongoing global enterprise investments in AI data infrastructure.
