Nokia Optical Networks Fuels 54% Profit Jump with €1B AI Data Center Orders
Nokia’s Q1 2026 operating profit surged 54% to €281 million, propelled by a 20% Optical Networks growth and €1 billion in hyperscaler AI data center orders. The company raised its 2026 Network Infrastructure growth forecast to 12–14% and now expects AI and cloud markets to expand 27% annually through 2028.
1. Q1 2026 Earnings Jump
Nokia reported operating profit of €281 million, a 54% year-over-year increase, driven by robust network infrastructure performance. Shares rose 7% in Helsinki, contributing to a 63% gain in the stock price so far this year.
2. Optical Networks Driving Growth
The Optical Networks unit within Network Infrastructure saw 20% revenue growth in the quarter, outpacing IP Networks (3% growth) and Fixed Networks (–13%), and positioning fiber systems as the key growth driver connecting AI data centers.
3. Hyperscaler AI Orders
Nokia secured €1 billion in new AI and cloud orders from Amazon, Google and Microsoft in Q1, raising sales to AI and cloud buyers to 8% of total revenue, up 49% from a year ago.
4. Upgraded Forecast and Strategy
The company lifted its 2026 Network Infrastructure growth guidance to 12–14% and projects AI-driven optical and IP markets to grow 27% annually through 2028, bolstered by wider margins from the 2025 Infinera acquisition.