Nokia stock surges as Q1 profit jumps and Optical Networks demand accelerates
Nokia shares are jumping after the company reported Q1 2026 results showing a sharp profit improvement and strong Optical Networks growth. Comparable operating profit rose 54% to €281 million, while Optical Networks revenue increased 20% and Nokia maintained its full-year profit outlook of €2.0–€2.5 billion.
1. What’s driving NOK today
Nokia is rallying after releasing its Q1 2026 interim report, which showed stronger profitability and improving margins alongside accelerating demand in Optical Networks. The move reflects investors re-pricing near-term earnings power as network infrastructure spending tied to data-center and AI-driven traffic remains resilient.
2. The key numbers investors are reacting to
Nokia posted 4% comparable net sales growth (constant currency) to about €4.5 billion, supported by Network Infrastructure strength. Comparable operating profit rose 54% year over year to €281 million, with comparable operating margin improving to 6.2% from 4.2% a year earlier, while Optical Networks revenue jumped 20%.
3. Guidance and what changed inside the outlook
Nokia kept its full-year 2026 comparable operating profit outlook unchanged at €2.0–€2.5 billion, reducing fears that Q1 strength was purely timing-related. It also increased its growth assumption for 2026 Network Infrastructure net sales to 12%–14%, with combined IP and Optical Networks expected to grow 18%–20%, reinforcing the market’s focus on optical transport as a key earnings lever.
4. What to watch next
Investors will be focused on whether Optical Networks momentum can persist through the next few quarters, particularly as operators and hyperscalers expand capacity for cloud and AI workloads. The next major catalyst is execution against the raised Network Infrastructure growth assumptions and confirmation that margin gains hold as volumes scale.