Nokia reported strong second-quarter results for 2026, posting a 9% increase in net sales driven by rising global demand for Artificial Intelligence (AI) and cloud infrastructure.
The Finnish technology company released its second-quarter and half-year financial results on Thursday.
Nokia said second-quarter net sales rose 8% on a reported basis and 9% at constant currency.
“Revenue from AI and cloud customers surged 105% year-on-year, reflecting increased investment by telecommunications operators, enterprises and hyperscale cloud providers in AI infrastructure,” the company said.
Network Infrastructure remained Nokia’s strongest-performing segment, with net sales rising 12% at constant currency. Optical Networks recorded a 20% increase in sales, while IP Networks grew 16% year-on-year.
The company attributed the performance to strong demand for high-capacity connectivity and internet infrastructure supporting AI-driven applications.
Nokia also reported growth in Mobile Networks, supported by an improved product mix. AI and cloud order intake reached €2.8 billion during the quarter.
Sales to AI and cloud customers more than doubled compared with the same period in 2025, with about half of the orders expected to be recognised as revenue over the next 12 months.
Strong customer demand and ongoing supply constraints encouraged clients to place longer-term orders.
Comparable gross margin rose 70 basis points to 46.0%, while reported gross margin increased 60 basis points to 44.6%. Comparable operating margin improved 70 basis points to 9.0%.
However, reported operating margin declined to -1.0% due to the accelerated pace of the company’s restructuring programme.
Nokia reported comparable diluted earnings per share of €0.07, while reported diluted earnings per share stood at €0.00.
The company noted that an accounting adjustment reduced its comparable operating profit guidance by €0.1 billion but had no impact on underlying business performance.
Nokia maintained its full-year 2026 outlook, projecting comparable operating profit of between €2.1 billion and €2.6 billion.
Commenting on the results, Nokia President and CEO Justin Hotard said the company’s strategy was yielding results as it capitalised on opportunities created by the growing AI market.
“The second quarter demonstrates that our strategy is delivering results. Since setting out our plan late last year, Team Nokia has focused on maximising opportunities in the AI supercycle.
“We enter the second half of the year with strong momentum and remain on track to deliver somewhat above the midpoint of our comparable operating profit guidance,” he said.
Hotard added that Nokia recently launched the industry’s first commercial Artificial Intelligence Radio Access Network (AI-RAN) platform to help mobile operators improve network performance using AI.
The platform is expected to deliver more than 100% gains in spectral efficiency by 2028, enabling operators to transmit significantly more data over existing spectrum while providing a software upgrade path from 5G to 6G.
