Nokia Q2 profit beat on AI demand

STOCKHOLM, July 23 (Reuters) - 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.

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.

Nokia has been shifting focus to selling fibre optic cables to big tech companies building AI data centres. 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.

"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.

The Espoo, Finland-based group said net sales from AI and cloud customers doubled in the quarter to 446 million, as it booked 2.8 billion euros in new orders.

Rival Swedish telecoms equipment maker Ericsson warned last week that it was under pressure from rising memory chip costs driven by surging AI demand, fanning investor worries that margins would be hit and sending its shares tumbling.