Nokia ended the second quarter of 2026 with results that exceeded market expectations. Comparable operating profit rose by 18 per cent year-on-year to €434 million. Analysts surveyed by LSEG had forecast an average of €382 million. Comparable net sales amounted to €4.82 billion, also exceeding forecasts.
The main drivers of growth were customers developing artificial intelligence infrastructure and cloud services. Nokia’s sales to this group doubled to €446 million. The company also secured new orders worth €2.8 billion. This is the result of growing investment in data centres, which require high-speed fibre-optic connections, switches and equipment for transmitting large volumes of data.
This shift is part of Nokia’s broader strategy. Under the leadership of Justin Hotard, previously in charge of Intel’s data centre and AI business, the company is moving more decisively beyond the traditional telecoms operator market. In October 2025, Nokia announced a strategic partnership with Nvidia, coupled with a $1 billion investment from the chip manufacturer. The collaboration covers networking solutions for AI infrastructure and the development of AI-RAN technology.
However, there is another side to this boom. Rapid growth in demand for memory and semiconductors used in data centres is driving up component prices and lengthening delivery times. Nokia points out that it is supply, rather than the number of orders, that is currently the main constraint. Ericsson has highlighted a similar risk, announcing measures to limit the impact of rising component costs on margins.
Despite cost pressures, Nokia has raised its forecast for comparable operating profit for the full year 2026. The new range is €2.1 to €2.6 billion, compared with the previous €2–2.5 billion. The results show that investment in AI is beginning to significantly alter the revenue structure of network infrastructure manufacturers. For Nokia, this presents an opportunity for faster growth, although the pace of this growth will also depend on the availability of components and the maintenance of margins.
