Nokia reported a significant uptick in first-quarter comparable operating profit on Thursday, as demand from artificial intelligence and cloud customers continued to underpin the Finnish telecom equipment maker's results.
Financials in the quarter
Comparable operating profit rose 54% to 281 million euros in Q1 2026, exceeding the average analyst estimate of 250 million euros compiled by Infront. Comparable net sales hit 4.5 billion euros, matching market expectations. The company said net sales to AI and cloud customers climbed 49% in the quarter. The group added that it booked orders worth 1 billion euros during the period. ($1 = 0.8548 euros)
Drivers of the performance
Nokia attributed the recent sales momentum to strong demand for equipment used in artificial intelligence data centres operated by so-called hyperscalers - the large cloud service providers that rely heavily on fibre optic connectivity. The firm noted the continuing importance of fibre and optical transport capacity as hyperscalers expand their data centre and cloud infrastructure.
Once best known for its mobile phone business and later for 5G network equipment, Nokia has evolved into a major producer of optical transport systems. That position was strengthened after its acquisition of U.S.-based Infinera, the company said.
Context and company notes
The Espoo, Finland-based group emphasised the contribution from AI and cloud buyers to its revenue mix. While comparable net sales were in line with expectations, the outsized gain in comparable operating profit suggests improving operating leverage in the quarter amid concentrated demand from hyperscalers and cloud providers.
Key takeaways
- Nokia beat consensus on comparable operating profit, posting a 54% year-on-year increase to 281 million euros in Q1 2026.
- Comparable net sales were 4.5 billion euros and sales to AI and cloud customers rose 49% year-on-year; the company booked 1 billion euros of orders in the quarter.
- The firm highlighted strong demand from hyperscalers for fibre optic and optical transport equipment, and noted its positioning as a top manufacturer in optical transport after acquiring Infinera.
Impacted sectors
- Telecom equipment and optical transport markets, where Nokia competes with specialized suppliers.
- Cloud infrastructure and data centre build-out, driven by hyperscaler spending on fibre and optical systems.