Nokia Q3 Profit Rises on AI-Driven Network Demand

Nokia Oyj reported a 35% increase in comparable operating profit in the third quarter, driven by strong demand for network infrastructure used in artificial intelligence (AI) and cloud computing.

Nokia reported higher third-quarter comparable operating profit as demand for AI and cloud networking infrastructure surged. [Photo: Nokia Facebook]

The Finnish telecommunications equipment maker maintained its full-year financial outlook, Ayushman Ojha reported for Investing.com.

Nokia’s comparable operating profit rose to €605 million ($680 million) in the July-to-September quarter, from €448 million a year earlier.

The company’s shares fell more than 5% in premarket trading despite the earnings increase, as investors weighed other aspects of its financial performance. Net sales increased 10% to €5.15 billion, while the comparable operating margin expanded to 11.7%, from 9.5%.

Nokia’s Network Infrastructure business led growth, with sales increasing 15% on a constant-currency basis. IP Networks sales rose 43%, while Optical Networks sales increased 18%.

Sales to AI and cloud customers surged 123% year over year, while order intake from the segment increased 118%.

Mobile Infrastructure sales grew 5%, partly reflecting revenue brought forward from the fourth quarter, the company said.

Nokia maintained its full-year 2026 comparable operating profit outlook of €2.1 billion to €2.6 billion. However, reported operating profit fell 22% to €196 million, weighed down by restructuring and integration costs.

The company’s results therefore showed a contrast between strong growth in its AI-related businesses and continued costs associated with restructuring.