Investing.com– Nokia Oyj (NOK) reported a 35% rise in third-quarter comparable operating profit on Thursday, driven by strong demand for network infrastructure used in artificial intelligence and cloud computing, while maintaining its full-year financial outlook.
The Finnish telecom equipment maker’s comparable operating profit rose to 605 million euros ($680 million) in the July-September quarter from 448 million euros a year earlier.
Nokia stock fell more than 5% during premarket trading on Thursday even as sales to AI and cloud customers surged 123% in the third quarter.
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Net sales increased 10% to 5.15 billion euros, while comparable operating margin expanded to 11.7% from 9.5%.
Nokia’s Network Infrastructure business led growth, with sales rising 15% on a constant-currency basis, supported by a 43% increase in IP Networks and an 18% rise in Optical Networks.
Sales to AI and cloud customers surged 123%, 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.
However, reported operating profit fell 22% to 196 million euros, weighed down by restructuring and integration costs. Nokia recorded 357 million euros in restructuring-related charges during the quarter.
The company maintained its 2026 comparable operating profit forecast of 2.1 billion to 2.6 billion euros, expecting fourth-quarter sales to rise 20% to 24% sequentially.
Chief Executive Justin Hotard said Nokia expected its combined Optical and IP Networks businesses to grow 25% to 30% in 2027, supported by AI infrastructure demand.
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