Nokia reported comparable operating profit of \u20ac434mn for the second quarter of 2026, up 18% on the same period last year and comfortably ahead of the \u20ac382mn that analysts polled by LSEG had forecast.<\/em><\/p>\n Net sales rose 8% to \u20ac4.82bn, or 9% at constant currency, lifted by the companies racing to build AI data centres.<\/p>\n The beat extended a run that began earlier in the year, when comparable operating profit jumped 54% in the first quarter.<\/p>\n For the first half, net sales reached \u20ac9.25bn, up 6% as reported and 7% at constant currency, while the group operating margin widened to 9.0% in the second quarter, an improvement of 70 basis points.<\/p>\n The Finnish network-equipment maker\u2019s Network Infrastructure division carried the quarter, with sales up 12% to \u20ac2.04bn.<\/p>\n TNW City Coworking space – Where your best work happ<\/a>ens<\/p>\n A workspace designed for growth, collaboration, and endless networking opportunities in the heart of tech.<\/p>\n<\/div>\n<\/div>\n Optical Networks grew 20% and IP Networks 16%, both supplying the\u00a0optical networking\u00a0and routing that hyperscalers are buying to wire their AI clusters together and to link data centres across long distances.<\/p>\n Sales to AI and cloud customers more than doubled year on year, reaching \u20ac446mn, and the unit booked \u20ac2.8bn of fresh orders during the quarter.<\/p>\n Much of that came from selling fibre-optic gear to the large technology<\/a> firms building AI data centres, a market Nokia has pushed into hard over the past year.<\/p>\n \u201cDemand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders,\u201d<\/em> chief executive Justin Hotard said.<\/p>\n New orders ran well ahead of what Nokia actually shipped, a sign of a lengthening backlog. The \u20ac2.8bn of AI and cloud orders booked in the quarter comfortably exceeded the \u20ac446mn those customers bought over the same three months, as buyers moved to lock in scarce supply ahead of delivery.<\/p>\n Mobile Infrastructure, still the larger unit by revenue, grew 6% to \u20ac2.68bn, a steadier showing than the surging data-centre business.<\/p>\n The mobile networks market has stabilised after several lean years of slowing 5G spend, though it is nowhere near the double-digit growth Nokia is now booking from cloud customers, and it remains the part of the business most exposed to the memory chips whose prices are climbing.<\/p>\n The comparable figures flattered a messier bottom line. On a reported basis, Nokia swung to an operating loss of \u20ac50mn and posted net profit of just \u20ac5mn, down from \u20ac96mn a year earlier, after restructuring and other one-off charges weighed on the accounts.<\/p>\n Nokia expects about \u20ac800mn of restructuring charges across 2026, including \u20ac350mn tied to integrating its operations in China, \u20ac200mn for European restructuring, and \u20ac250mn under an earlier cost-cutting programme.<\/p>\n It held the quarterly dividend at \u20ac0.04 a share, payable on August 6.<\/p>\n The company raised its full-year outlook for comparable operating profit to between \u20ac2.1bn and \u20ac2.6bn, up from \u20ac2.0bn to \u20ac2.5bn, though \u20ac0.1bn of the increase is a technical adjustment linked to reclassifying discontinued operations.<\/p>\n Hotard said the group was on track to finish \u201csomewhat above the midpoint\u201d of that range.<\/p>\n The raised guidance still leaves most of the year to play for. Nokia earned roughly \u20ac715mn of comparable operating profit across the first half, which means the top of its \u20ac2.6bn target depends on the second half delivering close to \u20ac1.9bn, a back-loaded shape that leaves little room for slippage.<\/p>\n The results arrive against a backdrop of\u00a0rising memory chip prices, which AI demand has pushed to record levels and which are squeezing makers of telecoms and networking equipment.<\/p>\n Rival Ericsson has flagged similar cost pressure, though Nokia\u2019s second-quarter numbers suggest it is absorbing the hit for now.<\/p>\n Hotard, who joined from Intel and took over as chief executive in 2025, has steered Nokia towards the\u00a0data-centre buildout\u00a0rather than the slower telecoms-equipment cycle that defined the company for much of the past decade.<\/p>\n The next test comes with third-quarter results, when investors will watch whether that \u20ac2.8bn order book converts into the second-half momentum he is promising.<\/p>\n<\/p><\/div>\n If you liked the article, do not forget to share it with your friends. Follow us on\u00a0Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n If you want to read more like this article, you can visit our Technology category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n\n
![](\"https:\/\/media.thenextweb.com\/2023\/11\/Untitled-design-19.avif\")
<\/p>\n