Nokia Reports Stronger Second-Quarter Earnings Amid Rising AI Infrastructure Demand
Nokia reported stronger-than-expected second-quarter earnings, driven by rising demand for artificial intelligence infrastructure and cloud networking. The company's Network Infrastructure business saw significant growth, with sales increasing 12% on a constant-currency basis. Revenue from AI-related customers more than doubled year-over-year to €4.82 billion in total revenue, up 9% compared to the same period last year. Despite strong operating performance and record AI orders of €2.8 billion during Q2—half expected to convert into future sales—Nokia's shares initially rose but later declined as investors questioned why guidance for 2026 was not raised. The company cited restructuring costs, which led to a reported operating loss of €50 million compared to an operating profit in the prior year. Analysts highlighted the exceptional growth in AI demand and noted that Nokia's updated full-year comparable operating profit guidance remains within a range of €2.1 billion to €2.6 billion.
Tickers: $NOK
Topics: AI infrastructure cloud networking restructuring costs telecom equipment