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Nokia ( (GB:0HAF) ) just unveiled an update.
Nokia is a global telecommunications and network infrastructure vendor providing mobile and fixed network equipment, IP and optical networking solutions, and related software and services to operators, cloud providers and enterprises. The company is sharpening its focus on AI-driven and cloud-based connectivity, next-generation radio access technologies, and restructuring its portfolio and geographic footprint to prioritize higher-growth segments.
In its second-quarter 2026 update, Nokia reported 9% revenue growth at constant currencies and improved comparable margins, powered by double-digit gains in network infrastructure and a 105% surge in sales to AI and cloud customers, even as reported operating profit was weighed down by accelerated restructuring. Strong AI and cloud order intake of EUR 2.8 billion, the launch of a commercial AI-RAN platform aimed at doubling network capacity on existing spectrum, and a reaffirmed yet technically adjusted full-year profit outlook signal firm demand and an ongoing strategic shift, with elevated restructuring costs and moderated capex expected to support long-term competitiveness and returns.
More about Nokia
Nokia is a global telecommunications and network infrastructure company that supplies mobile and fixed network equipment, IP and optical networking solutions, and related software and services. Its primary customers are telecom operators, cloud providers and enterprises, with a growing focus on AI-driven and cloud-based network demand and the evolution from 5G toward 6G architectures.
The group competes in network infrastructure and mobile networks worldwide, positioning itself as a technology partner for high-performance, reliable connectivity in the AI era. Nokia also runs portfolio businesses and is actively reshaping its footprint, including in China, to focus resources on higher-growth network segments and advanced radio access technologies.
Nokia reported a solid second quarter of 2026, with revenue up 9% at constant currencies and strong growth in network infrastructure driven by optical and IP networks, as sales to AI and cloud customers more than doubled. Comparable gross margin improved to 46% and comparable operating margin to 9%, though reported operating margin slipped into a slight loss due to accelerated restructuring charges.
Orders from AI and cloud customers reached EUR 2.8 billion in the quarter, with roughly half expected to convert to revenue over the next year, underscoring robust demand despite ongoing industry-wide supply constraints. The launch of a commercial AI-RAN platform, promising up to a doubling of network capacity by 2028 on existing spectrum and a software-led path to 6G, highlights Nokia’s push to monetize 5G investments and strengthen its position in next-generation mobile infrastructure.
The company reaffirmed its operational outlook for 2026 while technically adjusting its full-year comparable operating profit range to EUR 2.1–2.6 billion after reclassifying two portfolio businesses as discontinued operations. Management continues to expect full-year results slightly above the midpoint of guidance, supported by anticipated revenue growth in the second half and especially stronger profitability in the fourth quarter.
Nokia is accelerating restructuring to boost agility and redirect spending toward growth, expecting EUR 800 million in related costs in 2026, including its 2023–2026 cost-savings program and simplification of its operating structure in China. The company has lowered its capital expenditure outlook, mainly due to real estate changes, while continuing to invest in expanding optical manufacturing capacity, with free cash flow still targeted at a robust proportion of comparable operating profit.
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