Nokia Q3 Net Sales Up 10% as AI and Cloud Revenue Surges 123%

Nokia reported third-quarter 2026 results with net sales of EUR 5.154 billion, up 10% year-on-year on a reported basis (9% in constant currency). Revenue from AI and cloud customers reached EUR 631 million, surging 123% year-on-year, with orders up 118% and around EUR 1.5 billion of new orders booked in the quarter.

Network Infrastructure revenue rose 15% to EUR 2.158 billion. IP Networks grew 43% to EUR 839 million and Optical Networks grew 18% to EUR 933 million, while Fixed Networks declined 22% to EUR 386 million. Sales to traditional telecom operators were flat at EUR 3.640 billion, making AI and cloud customers the main growth driver.

Comparable operating profit came in at EUR 605 million, up 35% year-on-year and above the market estimate of EUR 454 million. Comparable operating margin was 11.7%, up 220 basis points. Reported operating profit fell 22% to EUR 196 million, reflecting EUR 357 million in restructuring charges in the quarter. The company raised its full-year restructuring charge guidance from EUR 800 million to EUR 1.1 billion.

Free cash flow was negative EUR 99 million in the quarter, and net cash declined to EUR 2.584 billion from EUR 3.378 billion at the end of 2025. Nokia lowered its 2026 free cash flow conversion guidance to 35%-55%, citing about EUR 400 million of additional working capital to support 2027 deliveries.

Nokia maintained its full-year comparable operating profit guidance of EUR 2.1 billion to EUR 2.6 billion and expects fourth-quarter net sales to grow 20%-24% sequentially. The company also guided for 25%-30% combined growth in Optical Networks and IP Networks in 2027, with the Infinera integration expected to complete by end-2026, one year ahead of schedule.