Nokia Q3 Sales Rise 9% as AI and Cloud Revenue Surges 123%

Nokia Corporation  reported a 9% year-on-year increase in net sales on a constant-currency basis in the third quarter of 2026, supported by growth in its Network Infrastructure business and rising demand from artificial intelligence (AI) and cloud customers.

The Finnish telecommunications equipment maker recorded net sales of EUR 5.15 billion in the quarter ended September 2026, up 10% from EUR 4.70 billion a year earlier on a reported basis. Comparable operating profit rose 35% to EUR 605 million, while comparable operating margin increased to 11.7% from 9.5% in the third quarter of 2025.

However, reported operating profit fell 22% to EUR 196 million, while reported operating margin declined to 3.8% from 5.4%, partly due to accelerated restructuring and integration costs. Nokia’s comparable diluted earnings per share from continuing operations increased to EUR 0.09 from EUR 0.06.

Network Infrastructure was a major contributor to growth, with quarterly net sales increasing 15% year-on-year on a constant-currency basis to EUR 2.16 billion. Within the segment, IP Networks grew 43%, while Optical Networks increased 18%. Group net sales to AI and cloud customers rose 123%, and order intake from these customers increased 118%.

Mobile Infrastructure net sales grew 5% to EUR 2.90 billion, partly reflecting the acceleration of revenue from the fourth quarter into the third quarter. Nokia attributed the segment’s performance to product mix, commercial discipline and continued execution of its cost-reduction programme.

“Team Nokia continues to deliver on our commitments as we execute against our strategy. In Q3, we grew net sales by 9% and improved comparable operating margin by 220 basis points. We continue to simplify our portfolio, and we are on track to complete the Infinera integration by the end of 2026, one year ahead of plan with EUR 200 million of net synergies.”

– Justin Hotard, President and CEO, Nokia 

Hotard said the company’s AI and cloud business had more than doubled its net sales year-on-year, with Nokia securing EUR 1.5 billion in new orders. He also pointed to the company’s expectations for continued growth in its optical and IP networking businesses.

“We expect our combined Optical and IP Networks businesses to grow between 25% and 30% in 2027.”

– Justin Hotard, President and CEO, Nokia 

Nokia is also expanding its work on AI-native networks. During the quarter, the company said it completed the world’s first AI-RAN call in a live operator network with T-Mobile and NVIDIA, fulfilling a commitment announced the previous year.

The company said its AI-RAN platform is being developed to deliver the performance required for emerging AI-native network applications, with commercial deployment as the next stage.

Nokia’s full-year 2026 financial outlook remains unchanged, with comparable operating profit expected to range between EUR 2.1 billion and EUR 2.6 billion. The company expects fourth-quarter net sales to increase by 20% to 24% compared with the third quarter.

For 2026, Nokia now expects Network Infrastructure net sales to grow between 12% and 14% on a constant-currency and portfolio basis. It also revised its free cash flow conversion assumption to 35%–55% of comparable operating profit, citing additional working-capital investments to secure supply and support expected growth in 2027, alongside accelerated restructuring.

The company plans to invest an additional EUR 400 million in working capital during 2026. It also increased its expected restructuring and associated charges to EUR 1.1 billion, while restructuring-related cash outflows are projected at EUR 800 million to EUR 900 million.

Separately, Nokia’s Board of Directors approved a dividend of EUR 0.03 per share on 22 October 2026. The dividend record date is 27 October, with payment scheduled for 5 November 2026.

Nokia said its outlook remains subject to risks and uncertainties, including competitive pressures, changes in customer network investment, supply-chain disruptions, geopolitical conflicts, currency fluctuations and the company’s ability to execute and integrate transactions successfully.