Published Thu, Jul 23, 2026 · 02:47 PM
[HELSINKI] Nokia’s second-quarter profit strongly beat analysts’ forecasts, as the Finnish mobile network equipment maker’s push to supply gear to data centres propelled sales.
Adjusted operating income rose to 434 million euros (US$496 million) in the period, the Espoo-based company said in a statement on Thursday (Jul 23). That compares with an average analyst estimate of about 372.3 million euros, according to data compiled by Bloomberg.
Net sales rose 8 per cent year on year to 4.8 billion euros for the quarter, in line with analysts’ estimates.
Chief executive officer Justin Hotard is working to diversify beyond its older telecommunications network gear to capitalise on the boom in artificial intelligence-driven data centre construction. He announced the pivot last year alongside plans to restructure the company’s operations and sell off under-performing units, promising double-digit operating income growth in the years ahead.
While the AI boom has brought new opportunities, the rush to build out new data centres and increase computing resources has led to shortages of key parts, including memory chips, and increasing prices. Rival Ericsson warned last week that rising costs would hurt margins, making new orders from its customers more expensive to fulfill.
Nokia is also using AI to make its equipment more efficient. Last week, the company presented technology with chipmaker Nvidia that promises to as much as double the amount of data that wireless providers can transmit over the same airwaves. The platforms, set to be released next year, are designed to run with 4G and 5G networks and can easily be upgraded to a 6G standard once the next generation is defined.
That means that cost-sensitive telecommunications companies can update their networks virtually instead of relying solely on pricey hardware replacements. Hotard said he’s aiming for software subscriptions to become the main driver of the company’s radio-access network business going forward. Nvidia took a US$1 billion stake in Nokia last year. BLOOMBERG
