Nokia Reports Strong Underlying Quarter as AI Demand Lifts Outlook

what happened

According to Market Talk, Nokia posted third-quarter results that were clearly ahead of forecasts on a comparable basis. Reported figures, however, missed expectations because of larger one-off items, according to Inderes analysts Atte Riikola and Tommi Saarinen. Revenue came in slightly above consensus, while the bigger positive surprise was profitability, helped by better-than-expected results in network and mobile infrastructure.

Orders from AI and cloud customers stayed robust after a record second quarter, and revenue from these clients more than doubled year on year. Full-year guidance was left unchanged, and the outlook for optical and IP networks next year looks more upbeat than Inderes had anticipated. "The revenue beat and the stronger-than-expected growth outlook for 2027 put upward pressure on our earnings forecasts," the analysts wrote. Nokia shares fell 3.2%.

why it matters

For markets, the key point is that strong AI-related orders support the company's growth case, even though one-off items weighed on reported earnings. The share decline suggests some investors want cleaner reporting before turning more positive. The story is relevant to those following telecom equipment and network infrastructure stocks.

market impact

Nokia and network equipment: strong orders from AI clients support growth expectations

tags

instruments