TLDR
- Nokia’s Q3 comparable operating profit rose 35% to 605 million euros, above the 453 million euro estimate.
- Net sales grew 10% to 5.15 billion euros, ahead of the 5.05 billion euro consensus.
- Sales to AI and cloud customers jumped 123%, and orders from them rose 118% to 1.5 billion euros.
- Nokia kept its 2026 comparable operating profit outlook at 2.1 billion to 2.6 billion euros.
- The CEO expects Optical and IP Networks to grow 25% to 30% in 2027.
Nokia (NOKIA) stock was down about 2% on Thursday after the company reported third-quarter results. The move came even though earnings beat estimates.
Comparable operating profit rose 35% to 605 million euros, or about $680 million. A year ago, the figure was 448 million euros.
Analysts had expected 453 million euros, based on a company-provided poll. That is a wide beat by any measure.
Comparable net sales rose 10% to 5.15 billion euros. The consensus was 5.05 billion euros.
Comparable operating margin widened to 11.7% from 9.5%. That is a gain of 2.2 percentage points in a year.
The stock is still up 48% year-to-date. Thursday’s dip looks small next to that run.
AI and cloud orders lead the way
Sales to AI and cloud customers jumped 123% from a year earlier. Orders from that group rose 118% to 1.5 billion euros.
Reuters noted that demand from these customers has become an increasingly important growth driver. This quarter put hard numbers behind that.
Network Infrastructure sales grew 15% in constant currency. That unit did most of the heavy lifting.
Inside it, IP Networks rose 43%. Optical Networks climbed 18%.
Mobile Infrastructure sales grew 5%. Part of that came from revenue pulled forward from the fourth quarter, Nokia said.
Reported profit moves the other way
Reported operating profit fell 22% to 196 million euros. Nokia booked 357 million euros in restructuring-related charges during the quarter.
So the headline beat and the bottom line tell two different stories. The comparable figures leave out those costs.
Nokia kept its 2026 comparable operating profit outlook at 2.1 billion to 2.6 billion euros. No changes there.
For the fourth quarter, it expects sales to rise 20% to 24% from the third quarter. That is a steep climb for just three months.
CEO Justin Hotard said growth is accelerating and operating leverage is becoming more visible. He added that he is confident in the long-term value the team is creating for shareholders.
Hotard also expects the combined Optical and IP Networks businesses to grow between 25% and 30% in 2027. He tied that forecast to AI infrastructure demand.
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