Nokia Q2 Profit Climbs 18% as AI Data-Centre Demand Doubles Cloud Sales
July 23, 2026 – 8:28 am
(Image by: Nokia)
Nokia reported €434 million in comparable operating profit for the second quarter of 2026, a 18% increase from the same period last year and exceeding analyst forecasts of €382 million.
Net sales rose 8% to €4.82 billion, or 9% at constant currency, driven by the surge in building AI data centers. The beat continued an earlier trend: a 54% jump in Q1 comparable operating profit.
For the first half, net sales reached €9.25 billion, up 6% as reported and 7% at constant currency. Group operating margin expanded to 9.0% in Q2, improving by 70 basis points.
Network Infrastructure shone with an 12% sales increase to €2.04 billion. Optical Networks grew 20% and IP Networks 16%, both contributing to the hyperscalers’ AI cluster wiring and long-distance data center linking.
Sales to AI and cloud customers more than doubled year-on-year, reaching €446 million, with €2.8 billion in fresh orders during the quarter. This was largely driven by fiber optic gear sales to large tech firms building AI data centers.
"Demand remains strong…while supply continues to be the main industry constraint," said Justin Hotard, CEO of Nokia.
Mobile Infrastructure, the larger unit by revenue, grew 6% to €2.68 billion, a more stable performance compared to the booming data center business. While the mobile networks market has stabilized after lean years, it is still nowhere near the double-digit growth seen from cloud customers.
Despite stronger results, Nokia’s reported bottom line was impacted by restructuring charges and one-offs, resulting in an operating loss of €50 million and a net profit of just €5 million, down from €96 million a year earlier.
Nokia expects approximately €800 million in restructuring charges across 2026, including €350 million related to Chinese operations integration, €200 million for European restructuring, and €250 million under an existing cost-cutting program. The company maintained its quarterly dividend at €0.04 per share, payable on August 6.
Full-year outlook was raised to comparable operating profit of €2.1 billion to €2.6 billion, up from previous guidance of €2.0 billion to €2.5 billion.