Nokia beats Q2 estimates as AI cloud revenue doubles to €446M

Nokia reported Q2 comparable operating profit of €434M, beating estimates, as AI infrastructure demand drove a doubling of cloud revenue.

"Q2 demonstrates our strategy is delivering results," Justin Hotard, chief executive officer at Nokia, said. "Demand remains strong, while supply continues to be the main industry constraint."

Comparable net sales rose 9% on a constant-currency basis to €4.82B, also above the LSEG consensus estimate. AI & cloud revenue reached €446M, more than double a year earlier, while order intake hit €2.8B in the quarter — exceeding the full-year 2025 total. Network Infrastructure sales climbed 12% to €2.04B, and Mobile Infrastructure rose 6% to €2.68B.

Metric	Actual	Consensus	Beat/Miss
Comparable operating profit	€434M	€382M	+13.6%
Comparable net sales	€4.82B	~€4.7B	+2.6%
Comparable EPS	€0.07	not disclosed	—

The results contrast with rival Ericsson, which last week warned on margins due to rising memory chip costs. Nokia raised its full-year comparable operating profit guidance to €2.1B-€2.6B, from €2.0B-€2.5B, partly reflecting a reclassification of its Fixed Wireless Access CPE and Enterprise Campus Edge businesses as discontinued operations.

Comparable gross margin improved 70 basis points to 46 percent, while comparable earnings per share rose 75 percent to €0.07. The company booked €2.8B in AI & cloud orders during the quarter, providing strong revenue visibility for the coming quarters. Hotard, who previously led Intel's data center and AI business, has pushed Nokia deeper into AI infrastructure since taking the helm last year, including a partnership with Nvidia valued at more than €1B.

Nokia is expanding optical component manufacturing capacity, including a new San Jose fab set to begin ramping production in the fourth quarter and an agreement to acquire NXP's Chandler semiconductor fabrication campus in Arizona. The company expects around half of its Q2 AI & cloud orders to convert to revenue over the next 12 months. Capital expenditures are expected at €800M to €900M, reduced from prior guidance due to changes in real estate plans.

The guidance raise signals management expects AI demand to sustain its acceleration. Investors will watch the Q3 earnings report on Oct. 22 for further margin progression as supply constraints ease.

This article is for informational purposes only and does not constitute investment advice.