Strong demand from AI and cloud customers helped Nokia deliver better-than-expected financial results in the 2nd quarter of 2026, prompting the company to raise its full-year profit forecast.
The Finnish telecom equipment maker reported an 18% increase in comparable operating profit to €434 million in Q2 2026, surpassing analysts’ average estimate of €382 million. Comparable net sales also exceeded market expectations, reaching €4.82 billion.
Nokia has been expanding its focus on supplying fibre-optic equipment to major technology companies building AI data centres. This strategy contributed to a sharp rise in business from AI and cloud customers.
CEO Justin Hotard said, “Demand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders.”
Since joining Nokia in 2025 from Intel’s Data Center & AI Group, Hotard has prioritized growing the company’s data centre business. As part of this strategy, Nokia also signed a $1 billion deal with chipmaker Nvidia.
During the quarter, net sales from AI and cloud customers doubled to €446 million, while the company secured €2.8 billion in new orders.
Despite the strong performance, Nokia noted that it was also affected by rising memory chip prices as growing AI demand tightened global supply. The same issue recently led rival telecom equipment maker Ericsson to warn of pressure on its margins.
Reflecting confidence in continued momentum, Nokia raised its full-year comparable operating profit guidance to €2.1 billion–€2.6 billion, up from its previous forecast of €2 billion–€2.5 billion.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream LinkedIn | The Mainstream Facebook | The Mainstream Youtube | The Mainstream Twitter
About us:
The Mainstream is a premier platform delivering the latest updates and informed perspectives across the technology business and cyber landscape. Built on research-driven, thought leadership and original intellectual property, The Mainstream also curates summits & conferences that convene decision makers to explore how technology reshapes industries and leadership. With a growing presence in India and globally across the Middle East, Africa, ASEAN, the USA, the UK and Australia, The Mainstream carries a vision to bring the latest happenings and insights to 8.2 billion people and to place technology at the centre of conversation for leaders navigating the future.