Nokia Announces New Strategy, Operating Model Evolution and Financial Target
Nokia Oyj unveiled a new strategy focused on leading the AI-driven network transformation, along with an evolved operating model and a new long-term financial target. The company will simplify its operations into two main segments.
Espoo, Finland – November 19, 2025 – Nokia Oyj today announced its new strategy, aimed at positioning the company to lead in the AI-driven transformation of networks and capitalize on the AI supercycle. The company also introduced a new long-term financial target, strategic KPIs, and an evolution of its operating model and Group Leadership Team.
To execute its new strategic direction, Nokia is simplifying its operating model into two primary segments: Network Infrastructure and Mobile Infrastructure. These changes are effective January 1, 2026. The company aims to create a stronger path for innovation, customer service, and shareholder value creation. Nokia's new long-term target is to grow its comparable operating profit to a range of EUR 2.7 to 3.2 billion annually by 2028.
"Nokia changed the world once by connecting people — and will again by connecting intelligence," said President and CEO Justin Hotard. "As the trusted western provider of secure and advanced connectivity, our technology is powering the AI supercycle."
The strategy's five key priorities are to accelerate growth in AI & Cloud, lead the next era of mobile connectivity with AI-native networks and 6G, grow by co-innovating with customers and partners, focus capital where Nokia can differentiate, and unlock sustainable returns. These priorities are intended to strengthen Nokia's market position and drive growth.
The new Network Infrastructure segment, led by David Heard, will focus on the global build-out of AI and data centers, alongside continued innovation for telecommunications customers. The Mobile Infrastructure segment, led on an interim basis by Justin Hotard, will combine Nokia's Core Networks, Radio Networks, and Technology Standards units, aiming to lead the industry toward AI-native networks and 6G. Additionally, Nokia is establishing a new "Portfolio Businesses" segment to manage units that are not core to its new strategy, pending assessment of their value creation opportunities.