Nokia Reports Q1 Results with Strong Growth in Optical Networks
Nokia Oyj announced its first-quarter financial results, showing a 6% growth in Network Infrastructure sales and a 20% increase in Optical Networks sales year-over-year. The company maintained its full-year outlook.
Espoo, Finland – Nokia Corporation released its first-quarter 2026 interim report today, highlighting robust growth within the company's Network Infrastructure division.
Net sales for Network Infrastructure increased by 6% compared to the same period last year, with the Optical Networks segment experiencing a particularly strong 20% surge. This growth reflects heightened demand for solutions related to artificial intelligence (AI) and cloud services, where sales climbed by 49%. The company also reported a significant order intake of EUR 1 billion from AI and cloud customers.
Sales in Mobile Infrastructure remained stable, growing by 3%. Core Software operations saw a 5% increase, while Radio Networks remained flat. Technology Standards achieved 10% growth, supported by several new deals in consumer electronics and multimedia sectors.
Nokia's comparable operating margin improved by 200 basis points to 6.2%, and its comparable gross margin expanded by 320 basis points to 45.5%. The company maintained its full-year 2026 financial outlook unchanged, expecting a comparable operating profit between EUR 2.0 and 2.5 billion.
According to President and CEO Justin Hotard, the company now anticipates the AI and cloud market to grow at an average annual rate of 27% from 2025 to 2028, a notable increase from the previously estimated 16%. This outlook underpins Nokia's strategic investments in optical networks and AI-driven solutions.