Nokia Lifts Profit Guidance After Q1 Revenue Climbs 4% And AI Orders Reach €1B
ERIC•Nokia posted Q1 revenue of €4.5 billion, up 4% year-over-year, while operating profit surged 54% to €281 million and EPS beat estimates by 31%. Sales to AI and cloud clients jumped 49% with €1 billion in new cloud orders, prompting a full-year operating profit outlook of €2.0–2.5 billion.
1. Partnership With Nvidia Accelerates AI-RAN
In October 2025, Nvidia invested €1 billion at €6.01 per share for roughly a 3% stake, forging a joint AI-RAN platform that integrates AI workloads with wireless network infrastructure. T-Mobile is the first deployment partner, and Nokia’s AI-RAN now counts Deutsche Telekom, Vodafone, SoftBank and NTT Docomo among ten public customers.
2. Q1 2026 Earnings Beat Expectations
Nokia reported Q1 revenue of €4.5 billion, up 4% year-over-year, with operating profit climbing 54% to €281 million and EPS rising to €0.05 from €0.03. Sales to AI and cloud customers soared 49%, driven by €1 billion in new cloud orders for optical networking equipment in hyperscale data centers.
3. Guidance, Expansion Plans and Risks
Following the strong quarter, Nokia raised its Network Infrastructure growth forecast to 12–14% and Optical and IP Networks to 18–20%, with full-year operating profit now expected at €2.0–2.5 billion. The company also increased capex to €1 billion for optical capacity expansion and opened an AI Networking Innovation Lab in Sunnyvale, while cautioning that AI spending cycles and telecom economics could cool demand.
