Global Market: Nokia Q3 profit beats estimates on AI demand, maintains 2026 outlook

Finnish telecom equipment maker Nokia reported a stronger-than-expected rise in third-quarter comparable operating profit on Thursday, driven by growing demand from artificial intelligence and cloud customers, while maintaining its full-year financial outlook.

Comparable operating profit rose to 605 million euros ($680.20 million) in the third quarter of 2026, from 448 million euros a year earlier, beating the average analyst estimate of 453 million euros, according to a company-provided poll.

Read more: Global Market: Japan’s Nikkei falls as chip stocks retreat on AI spending concerns


Comparable net sales increased 10% to 5.15 billion euros during the quarter, exceeding the consensus estimate of 5.05 billion euros.

Demand from AI and cloud customers has emerged as an increasingly important growth driver for Nokia, with order intake from these segments surging 118% year-on-year to 1.5 billion euros in the third quarter.

The company expects its optical and IP networks businesses to continue expanding rapidly; Chief Executive Officer Justin Hotard projects combined growth of 25% to 30% in 2027, according to a company statement.

Read more: Global Market: South Korean shares fall over 1% as chip stocks retreat

Hotard said growth was accelerating and operating leverage was becoming more visible, expressing confidence in the company's ability to create long-term shareholder value.

Nokia's shares have gained 48% so far in 2026, reflecting investor optimism around its growth prospects amid rising demand for AI-related infrastructure and cloud networking equipment, Reuters reported.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)