Nokia shares hit three-year high after profit beat on AI and cloud-driven optical demand

Nokia beats profit forecasts as AI and cloud demand lift optical sales

Nokia outperformed expectations in Q3, with comparable operating profit hitting 435 million euros ($507 million). The market responded fast: shares jumped 10.6% to 5.2 euros by 0717 GMT-the highest level in over three years-adding roughly 3 billion euros to its market value.

The lift came from a surge in optical networking and cloud deals tied to AI data center buildouts, helped by the recent Infinera acquisition. Group net sales rose 12% to 4.83 billion euros, ahead of the 4.6 billion euro forecast.

Where the growth is coming from

• AI and cloud customers made up 6% of group net sales and 14% of network infrastructure sales.
• Optical Networks grew 19% on a constant currency basis.
• Leadership says AI and data center demand is strong and accelerating, pointing to continued momentum, according to CEO Justin Hotard.

While mobile networks remain the core business, Nokia's emphasis is shifting toward higher-growth optical and cloud infrastructure tied to AI workloads. The Infinera integration is already feeding that pipeline.

Headwinds-and how they're being managed

U.S. tariffs, a market slowdown, and a weaker dollar hit results earlier this year, prompting a profit warning in July. In North America, Nokia lost ground as AT&T transitions 5G work to Ericsson's $14 billion deal signed in 2023.

Even so, Nokia is outpacing its Swedish rival this quarter, signaling a market preference for vendors positioned in AI-driven optical and cloud projects.

Outlook

Nokia now sees annual operating profit between 1.7 billion and 2.2 billion euros, a slight upgrade from the prior range topping out at 2.1 billion. The company previously guided that the second half of 2025 would be stronger than the first.

The revised range partly reflects a change in how venture fund results are reported as Nokia scales down passive investments.

What this means for sales teams

• Lead with outcomes tied to AI workloads: bandwidth for training/inference, lower latency between compute clusters, and predictable cost per bit. Buyers want clear efficiency gains and time-to-value.
• Target the right economic buyers: data center leaders, cloud platform owners, and network architects-especially those planning GPU expansions or interconnect upgrades.
• Position optical as the foundation for AI growth. Tie proposals to capacity upgrades (e.g., higher-speed links), resilience, and faster rollout schedules.
• Qualify on real signals: new data hall builds, energy provisioning requests, or recent GPU orders. If those are active, optical spend is usually close behind.
• Mind the region and segment. North American mobile network spend is mixed; optical and cloud infrastructure budgets are more active.
• If you sell services or integration, bundle planning and migration to pull forward revenue and de-risk deployment timelines.
• Use the stock move as social proof, not the pitch. Keep the pitch rooted in measurable network outcomes and deployment speed.

Account questions that open real opportunities

• What AI workloads are scaling in the next 6-12 months, and where are current interconnect bottlenecks?
• Which routes need higher capacity first-metro, long haul, or data center interconnect-and what's the target latency?
• How are you planning to phase optical upgrades alongside GPU deployments to avoid stranded capacity or idle compute?
• What's the cost-per-bit target for this cycle, and how are you measuring ROI across training vs. inference?

Key numbers to keep in your back pocket

• Q3 comparable operating profit: 435 million euros ($507 million).
• Group net sales: up 12% to 4.83 billion euros.
• AI/cloud contribution: 6% of group net sales; 14% of network infrastructure sales.
• Optical Networks: up 19% (constant currency).
• Guidance: 1.7-2.2 billion euros operating profit for the year.
• FX reference: $1 = 0.8575 euros.

For deeper company context and financial materials, see the official Nokia investor relations page.

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