Nokia Q2 profit beat as sales from AI, cloud doubled
NOK•AI and cloud demand drives growth
The company has been shifting its focus to selling fibre-optic equipment to big tech companies building AI data centres. Nokia said net sales from AI and cloud customers doubled in the quarter to 446 million euros, as it booked 2.8 billion euros in new orders.
"Demand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders," CEO Justin Hotard said in a statement.
Since joining Nokia last year, Hotard, who came from leading Intel's Data Center & AI Group, has focused on expanding the Finnish group's data centre business. He even made a billion-dollar deal with chipmaker Nvidia NVDA.O.
Q2 profit and sales beat estimates
Nokia reported a bigger than expected rise in its quarterly comparable operating profit on Thursday, as the Finnish telecom gear maker got a boost from artificial intelligence and cloud customers, and expects the growth to continue.
Comparable operating profit jumped 18% to 434 million euros ($496.11 million) in the second quarter of 2026. That was above the average estimate of 382 million euros from analysts polled by LSEG.
Comparable net sales reached 4.82 billion euros in the quarter, above market estimates.
Margins pressured by memory chip costs; guidance raised
The company, however, was not immune to the sudden increase in memory chip prices due to AI companies cornering the market and impacting telecom equipment makers.
