Finnish telecom giant Nokia posted a strong third-quarter profit that exceeded analyst expectations, driven by rising demand for AI and cloud-powered network infrastructure. The company’s recent acquisition of Infinera boosted optical network sales, helping net sales climb 12% year-on-year to €4.83 billion.
Comparable operating profit came in at €435 million versus the €342 million analysts had predicted. Nokia’s shares rose more than 10%, reaching their highest point since 2021. CEO Justin Hotard credited accelerating AI and data center investments for the company’s improved performance.
While Nokia continues to face challenges in mobile networks — including AT&T’s decision to move its 5G contract to Ericsson — its diversification into cloud and optical technologies is paying off. The firm slightly raised its annual profit outlook to between €1.7 billion and €2.2 billion, citing stronger second-half performance and strategic refocusing of its venture fund investments.
