Nokia Hitches a Ride on the AI Supercycle: Q2 Financial Triumph Fueled by Soaring Cloud Demand

Nokia, a leading global technology and communications company, has reported a marked improvement in its financial results for the second quarter of 2026. This financial uplift has been driven by robust demand for AI-related networking infrastructure and continued momentum across its primary network businesses.

Stronger Financial Results and Network Performance

Nokia’s Q2 earnings revealed net sales of EUR 4.8 billion, demonstrating a growth of 9% YoY on a constant currency basis, and a rise of 8% on a reported basis. The period’s comparable profit experienced a significant surge of 64% YoY to EUR 414 million, reflecting improved operational performance and a more favorable business landscape.

The Network Infrastructure segment proved to be the company’s strongest-performing area, with net sales increasing by 12% YoY on a constant currency basis. The growth stems from a 20% hike in Optical Networks and a 16% rise in IP Networks. Sales to AI and cloud clients more than doubled, showing an impressive rise of 105% compared to the same period last year.

The Mobile Infrastructure segment also turned in a solid performance. Net sales rose by 7% YoY, while maintaining a stable profit contribution, which was supported by an improved product mix.

In the meantime, Nokia’s Portfolio Businesses recorded a 6% YoY growth on a constant currency basis. The company reclassified its Fixed Wireless Access (FWA) Customer Premises Equipment (CPE) and Enterprise Campus Edge businesses as discontinued operations.

Profitability and Restructuring Efforts

Profitability also saw an improvement during the quarter. The comparable gross margin grew by 70 basis points to 46%, and the reported gross margin increased by 60 basis points to 44.6%. The comparable operating margin improved by 70 basis points YoY to 9%, indicating a stronger underlying performance. However, the reported operating margin declined to negative 1.0%, down 430 basis points from a year earlier, primarily due to an accelerated pace of restructuring activities.

In line with Nokia’s objective of increasing agility and resource allocation toward growth opportunities, the company has accelerated certain restructuring actions. This means that Nokia now expects related charges of EUR 800 million in 2026.