Nokia Q2 2026: AI & Cloud Demand Fuels 9% Revenue Growth
Event summary
- Q2 net sales grew 9% y-o-y on a constant currency basis, driven by AI & Cloud demand.
- Network Infrastructure net sales increased 12%, with Optical Networks up 20% and IP Networks up 16%.
- Comparable operating margin expanded 70bps to 9.0%, but reported operating margin declined due to restructuring costs.
- Nokia reclassified two businesses as discontinued operations, revising full-year comparable operating profit guidance to EUR 2.1-2.6 billion.
- The company accelerated restructuring actions, expecting EUR 800 million in related charges for 2026.
The big picture
Nokia's Q2 results highlight the growing importance of AI & Cloud infrastructure, with significant revenue growth in Optical and IP Networks. The company is strategically repositioning itself to capitalize on the AI supercycle, while navigating restructuring costs and supply chain challenges. Nokia's investments in optical manufacturing capacity underscore its long-term commitment to securing a leading position in the evolving connectivity landscape.
What we're watching
- Execution Risk
- Whether Nokia can sustain its momentum in AI & Cloud demand amid supply constraints.
- Strategic Shifts
- The impact of reclassifying businesses as discontinued operations on future financial performance.
- Industry Dynamics
- How Nokia's AI-RAN platform will affect spectral efficiency gains and market differentiation.
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