Key Facts
• October 23, 2025: Nokia announced Q3 results exceeding market expectations.
• Operating profit: €435 million ($507 million), surpassing €342 million forecast.
• Revenue: €4.83 billion, a 12% increase, beating €4.6 billion analyst estimate.
• AI and cloud customers contributed 6% of total revenue, 14% of network infrastructure sales.
• Optical communications segment revenue grew 19% (currency-adjusted).
• Nokia’s core remains mobile communications, with investments in AI and cloud.
• CEO Justin Hotard highlighted strong demand for AI and data centers.
• July 2025: Nokia revised annual profit forecast downward due to tariffs, market slowdown, and weak dollar.
• Current annual profit forecast adjusted to €1.7–2.2 billion, slightly raising the upper limit.
Summary
Nokia’s Q3 2025 results outperformed market expectations, driven by strong demand in AI and cloud services. Operating profit reached €435 million, significantly exceeding the €342 million forecast. Revenue grew 12% year-on-year to €4.83 billion, with optical communications and cloud services performing well. AI and cloud customers accounted for 6% of total revenue and 14% of network infrastructure sales. Nokia continues to focus on mobile communications while expanding investments in AI, including the acquisition of optical communications firm Infinera. CEO Justin Hotard emphasized robust demand for AI and data centers. Despite earlier downward revisions to its annual profit forecast, Nokia slightly raised its upper limit to €2.2 billion, reflecting improved performance.
