Nokia's net sales to AI and cloud customers more than doubled in the third quarter, and the Finnish network equipment maker booked €1.5 billion in new orders from that group, up 118% year on year. AI and cloud sales reached €631 million, up 126% on a reported basis and 123% in constant currency, from €279 million a year earlier.
The AI demand lifted the whole group past expectations. Nokia's comparable net sales rose 10% to €5.15 billion, ahead of a company-compiled consensus of €5.05 billion, and comparable operating profit climbed to €605 million from €448 million, well above the €453 million analysts expected. Nokia maintained its full-year 2026 outlook for comparable operating profit of €2.1 billion to €2.6 billion.
“In AI & Cloud, net sales more than doubled year-over-year and we secured EUR 1.5 billion in new orders.”— Justin Hotard, CEO of Nokia
AI and cloud customers now account for about 12% of Nokia's quarterly revenue, roughly double their share a year earlier. Over the first nine months of 2026, Nokia's sales to the segment totaled €1.425 billion, up 110%.
Key facts
- 01Nokia's Q3 net sales to AI and cloud customers rose 126% to €631 million (123% in constant currency).
- 02AI and cloud order intake rose 118% year on year to €1.5 billion.
- 03Comparable net sales grew 10% to €5.15 billion; comparable operating profit was €605 million vs €448 million.
- 04Nokia expects its combined Optical and IP Networks businesses to grow 25% to 30% in 2027.
- 05Nokia kept its 2026 comparable operating profit outlook of €2.1 billion to €2.6 billion.
The growth is concentrated in the networking gear that links AI data centers. IP Networks revenue rose 45% to €839 million, led by AI and cloud customers, while Optical Networks grew 19% to €933 million. The Network Infrastructure division as a whole posted revenue of €2.158 billion, up 17%, with operating profit up 51% to €216 million.
Nokia expects that momentum to carry into next year, forecasting that its combined Optical and IP Networks businesses will grow 25% to 30% in 2027. For the current quarter, Nokia guided to revenue growth of 20% to 24% over the third quarter.
“Nokia's strengths are uniquely suited to meet growing demands for AI infrastructure”— Justin Hotard, CEO of Nokia
Nokia also pointed to new AI-related partnerships. Its work with Google supports Google's €13 billion investment in Finland, and Nokia, T-Mobile and Nvidia completed what Nokia described as the first AI-RAN call on a live operator network.
The AI ramp carries costs. Nokia said IP Networks gross margin declined in the quarter partly because of the ramp-up of new AI and cloud products. Restructuring and associated charges rose to €357 million from €44 million, pushing reported operating profit down 22% to €196 million, and free cash flow was negative €99 million.
Nokia raised its full-year restructuring charge assumption to €1.1 billion. It expects to finish integrating optical networking company Infinera by the end of 2026, a year ahead of schedule, targeting €200 million in net synergies.
“We are investing where we can differentiate and co-innovate with hyperscalers.”— Justin Hotard, CEO of Nokia
Shares in Nokia are up 48% so far this year. Chief executive Justin Hotard summarized the quarter in a statement: "Overall, growth is accelerating, operating leverage is becoming more visible."
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