Nokia has reported stronger-than-expected third-quarter results as demand for AI and cloud infrastructure continues to grow. The Finnish technology company supplies networking equipment and related systems used by telecom operators, data centres and large businesses.
For the third quarter of 2026, Nokia reported comparable net sales of €5.15 billion, up 10% from the same period a year earlier. Comparable operating profit increased to €605 million, compared with €448 million a year before.
AI and cloud demand is becoming a major growth driver
Nokia said sales to AI and cloud customers grew 123% year over year. Order intake from these customer groups increased 118% to €1.5 billion.
These figures show why AI infrastructure is creating opportunities beyond companies that make processors or build AI models. Data centres need high-capacity connections to move information between servers, storage systems and external networks. As AI workloads grow, the network linking those systems becomes increasingly important.
Training large AI models and serving millions of requests can place heavy demands on networking equipment. Businesses also need reliable connections between data centres and their customers. Nokia supplies technologies that help carry this traffic across telecom and enterprise networks.
The reported growth does not mean every part of Nokia’s business is expanding at the same rate. Demand varies by product, region and customer, and large contracts can affect results from one quarter to the next.
Profit grows faster than sales
Nokia’s comparable operating profit rose by more than one-third year over year. The result exceeded the average analyst estimate reported by Reuters.
Operating profit is important because it shows how much a company earns from its business activities before certain financial and other items are included. Stronger profit can indicate better operating performance, although investors also need to consider costs, cash flow and future investment requirements.
The company maintained its full-year financial outlook. This suggests management remains confident in its existing plans, but it does not guarantee that future results will meet expectations.
Nokia is also working through the integration of Infinera, an optical networking company it acquired. Integrating businesses can create opportunities to combine technology and sales channels, but it can also involve costs and operational challenges.
Why networking matters in the AI race
AI infrastructure is often discussed in terms of processors and memory, but networking is another essential part of the system. Large AI clusters rely on fast, reliable links between computing units. Data must move efficiently for workloads to run well.
Optical networking can help carry large amounts of data over long distances and between different parts of a data-centre network. Telecom infrastructure also connects those data centres to businesses and users.
As companies invest in AI systems, demand may rise for network upgrades, fibre equipment and other technologies that support greater traffic. Nokia’s results provide one example of how this spending can benefit suppliers outside the best-known AI chip companies.
However, demand is not the only factor that matters. The industry must also manage supply constraints, competition, energy use and the cost of expanding infrastructure. Strong orders today do not automatically translate into the same level of profit in every future quarter.
What comes next?
Nokia has maintained its full-year financial outlook while highlighting continued strength from AI and cloud customers. The next results will help show whether the current demand translates into sustained sales and profit growth.
For technology businesses, the key question is whether investment in AI infrastructure remains strong enough to support long-term expansion. For Nokia, the quality of its orders, its ability to deliver equipment and its management of costs will be important indicators to watch.
For more AI coverage, read our Google Gemini in Chrome report, explore the TECNO EllaClaw AI assistant article, and check our AI-focused Codex keyboard report. You can also read our Lenovo workstation coverage and browse our ASUS ProArt P16 creator laptop report.
Passionategeekz Take
Nokia’s latest results highlight the growing importance of networking in the AI industry. Stronger demand from cloud and AI customers is helping the company increase sales and operating profit. The next challenge will be turning this demand into steady growth while managing supply constraints and the cost of expanding infrastructure.
[Via]
About the Author
