Nokia reported stronger-than-expected third-quarter results on October 22, 2026, as growing demand for artificial intelligence infrastructure boosted its networking business. The Finnish telecommunications equipment maker recorded comparable operating profit of €605 million in the July–September quarter, up 35% from €448 million a year earlier. The result exceeded analyst expectations, which ranged from approximately €453 million to €462 million across different estimates. Revenue also increased, reaching €5.154 billion compared with €4.7 billion in the same quarter last year.
The results highlight Nokia’s effort to expand beyond its traditional telecommunications equipment business and benefit from investment in AI data centers. Sales to AI and cloud customers more than doubled, while its Network Infrastructure business delivered strong growth in IP and optical networking. Nokia maintained its full-year 2026 comparable operating profit outlook of €2.1 billion to €2.6 billion and said it expected to finish the year above the midpoint of that range. However, reported operating profit declined because of restructuring and integration costs, underscoring the difference between adjusted performance and the company’s statutory results.
Key Takeaways
- Adjusted operating profit: €605 million, up 35% year over year.
- Revenue: €5.154 billion, an increase of 10% on a reported basis.
- AI and cloud sales: Revenue from these customers more than doubled, rising 123%.
- Networking growth: Network Infrastructure sales rose 15% on a constant-currency basis.
- Reported operating profit: €196 million, down 22% from the previous year.
- Full-year outlook unchanged: Nokia continues to target €2.1 billion–€2.6 billion in comparable operating profit for 2026.
- Infinera integration: Nokia expects to complete the integration by the end of 2026, one year ahead of its original schedule.
Nokia Q3 2026 Results: Revenue and Profit Comparison
Nokia’s latest quarterly results show stronger revenue and adjusted profitability, supported by demand for networking equipment used in AI infrastructure.
| Financial metric | Q3 2026 | Q3 2025 | Year-over-year change |
|---|---|---|---|
| Net sales | €5,154 million | €4,700 million | +10% |
| Comparable operating profit | €605 million | €448 million | +35% |
| Comparable operating margin | 11.7% | 9.5% | +2.2 percentage points |
| Reported operating profit | €196 million | €252 million | -22% |
| Reported operating margin | 3.8% | 5.4% | -1.6 percentage points |
| Profit from continuing operations | €176 million | €90 million | +96% |
| Profit for the period | €156 million | €80 million | +95% |
| Comparable diluted earnings per share | €0.09 | €0.06 | +50% |
Source: Nokia’s Q3 2026 interim report. Figures are rounded where appropriate.
The 35% increase in comparable operating profit was substantially stronger than the growth analysts had anticipated. Revenue also exceeded the average estimate reported by market sources.
The improvement in comparable operating margin, from 9.5% to 11.7%, indicates that Nokia generated more adjusted operating profit from each euro of sales. Reported operating profit, however, moved in the opposite direction, falling from €252 million to €196 million.
That difference reflects the effect of items excluded from Nokia’s comparable measures, including restructuring and integration-related charges. Investors therefore need to examine both adjusted and reported figures to understand the company’s operating performance and the costs of its transformation.
AI Data Center Demand Becomes a Major Growth Driver
AI infrastructure was one of the strongest parts of Nokia’s quarterly performance. Sales to AI and cloud customers increased 123% year over year, while order intake from these customers rose 118%, according to the company’s results summary.
AI systems require extensive high-speed connectivity to move data between processors, storage systems and other infrastructure. As technology companies expand data centers to support increasingly demanding AI workloads, they need faster optical connections, high-capacity networking equipment and reliable data transmission.
Nokia supplies networking technologies that help connect these systems. Its strategy is to position its infrastructure business as a beneficiary of the AI investment cycle rather than depend exclusively on traditional telecommunications operators.
The increase in order intake is also important because orders can provide visibility into future sales. However, orders do not automatically translate into revenue or profit in the same quarter. Delivery schedules, component availability and customer investment plans affect when Nokia recognises sales.
The company has also faced constraints in the broader AI infrastructure supply chain, including pressure on memory and other components. Its ability to deliver equipment on schedule while protecting margins will remain important as demand expands.
Network Infrastructure Leads Segment Growth
Nokia’s Network Infrastructure business was a key contributor to the quarter’s improvement.
| Network Infrastructure indicator | Q3 2026 | Q3 2025 | Year-over-year change |
|---|---|---|---|
| Net sales | €2,158 million | €1,850 million | +17% reported |
| Constant-currency sales growth | — | — | +15% |
| Operating profit | €216 million | €143 million | +51% |
| Operating margin | 10.0% | 7.7% | +2.3 percentage points |
Within the segment, IP Networks sales increased 43%, while Optical Networks sales rose 18% on a constant-currency basis.
IP networking equipment helps route data through large networks, while optical networking technology carries high volumes of information over fiber-optic connections. Both are important to AI data centers, which must move substantial quantities of data quickly and efficiently.
Nokia has also indicated that it expects its combined Optical and IP Networks businesses to grow by 25%–30% in 2027. That forecast points to the importance of AI-related demand in its medium-term strategy, although actual growth will depend on customer spending and Nokia’s ability to fulfil orders.
Mobile Infrastructure Continues to Grow
Nokia’s Mobile Infrastructure business also delivered a positive quarter, with reported sales rising 5% year over year to €2.902 billion.
| Mobile Infrastructure indicator | Q3 2026 | Q3 2025 |
|---|---|---|
| Net sales | €2,902 million | €2,755 million |
| Operating profit | €420 million | €355 million |
| Operating margin | 14.5% | 12.9% |
The segment benefited from product mix, commercial discipline and continued execution of its cost-reduction programme. Nokia also noted that some revenue had shifted from the fourth quarter into the third quarter, which is relevant when interpreting the pace of growth.
Traditional telecom operators have faced pressure to manage spending following earlier waves of 5G network investment. That environment makes it important for Nokia to improve profitability while seeking new opportunities in mobile networks and AI-enabled communications.
Nokia is also working with Nvidia on technologies that combine AI computing with mobile networks. The companies’ broader ambition is to support AI-RAN, an approach that brings AI capabilities into radio access networks. Commercial adoption will depend on technical performance, operator investment and the economics of deploying the technology.
Why Reported Profit Fell Despite Strong Adjusted Earnings
One of the most notable details in Nokia’s results is the gap between comparable operating profit and reported operating profit.
Comparable operating profit reached €605 million, but reported operating profit was only €196 million. The reported figure also declined from €252 million in the year-earlier quarter.
The difference reflects restructuring, integration and other adjustments that Nokia excludes from its comparable performance measure. The company is simplifying its operations and integrating Infinera, the optical networking company it acquired in 2025.
Nokia expects to complete the Infinera integration by the end of 2026, a year earlier than originally planned. It also expects approximately €200 million in net synergies from the integration.
Restructuring can reduce costs and improve efficiency over time, but it can also create substantial near-term expenses. Investors will want to see whether the expected savings materialise and whether they translate into sustained growth in reported earnings and cash flow.
Nokia Maintains Its Full-Year 2026 Outlook
Despite the stronger third-quarter performance, Nokia maintained its full-year comparable operating profit outlook at €2.1 billion to €2.6 billion.
The company expects full-year operating profit to finish above the midpoint of that range. It also anticipates a typically stronger fourth quarter, with net sales expected to rise 20%–24% quarter over quarter.
Nokia has updated several assumptions underlying its outlook, including capital expenditure, restructuring costs and free cash flow conversion. It expects to invest additional working capital to secure supplies and support anticipated growth opportunities in 2027.
This matters because operating profit and cash generation are not the same. A company can report stronger earnings while using more cash to build inventory, prepare for deliveries or fund restructuring. Nokia’s ability to convert earnings into cash will therefore remain an important measure of the quality of its recovery.
The Bigger Picture
Nokia’s third-quarter performance shows how AI investment is reshaping demand for networking equipment. Strong growth in AI and cloud sales, along with improving margins in Network Infrastructure, supports the company’s effort to reduce its dependence on traditional telecom spending. The results also suggest that demand for optical and IP networking may remain an important growth driver into 2027.
However, the difference between comparable and reported operating profit shows that Nokia’s transformation still carries costs. Successful integration of Infinera, disciplined spending and stronger cash generation will be essential if higher adjusted earnings are to translate into sustainable financial improvement. Nokia’s unchanged full-year outlook provides a framework for assessing progress, but future results will depend on customer demand, supply-chain execution and the pace of AI infrastructure investment.
FAQs
1. How much operating profit did Nokia report in Q3 2026?
Nokia reported comparable operating profit of €605 million, up 35% from €448 million in the third quarter of 2025.
2. Why did Nokia beat analyst forecasts?
The company benefited from stronger demand for AI and cloud networking equipment, including a 123% increase in sales to AI and cloud customers. Revenue growth and improved operating efficiency also supported profitability.
3. What was Nokia’s Q3 2026 revenue?
Nokia generated net sales of €5.154 billion, compared with €4.7 billion in the same quarter of 2025.
4. Why was reported operating profit lower than adjusted operating profit?
Reported operating profit was €196 million, compared with €605 million in comparable operating profit. The difference reflects restructuring, integration and other items excluded from Nokia’s comparable measure.
5. What is Nokia’s full-year 2026 profit forecast?
Nokia maintained its comparable operating profit outlook of €2.1 billion to €2.6 billion and expects to finish above the midpoint of that range.
Looking Ahead
Nokia’s next results will show whether strong AI and cloud demand can continue to support revenue growth and improved margins. Investors will also monitor order conversion, component availability and the performance of the Optical and IP Networks businesses as the company prepares for anticipated growth in 2027.
The other major test is whether Nokia can turn higher comparable earnings into stronger reported profit and cash generation while completing its restructuring and Infinera integration. If the company sustains demand from AI infrastructure customers and captures the expected integration benefits, its transformation could strengthen its financial position. If spending slows or execution costs remain elevated, the gap between adjusted and reported performance may continue to attract investor attention.
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