Nokia Oyj posted a return to profitability in the first quarter, reporting net profit of 87 million euros compared with a 60 million euro loss in the same period a year earlier. The results were supported by higher sales and improving margins, particularly in optical networking and AI-driven infrastructure.
On a comparable basis and at constant currencies, net sales rose about 4% year-on-year to roughly 4.5 billion euros. Comparable operating profit increased 54% to 281 million euros, while the comparable operating margin improved to 6.2% from 4.2% in the prior-year quarter.
Segment performance
Growth was concentrated in Nokia's Network Infrastructure division, where revenue climbed 6%. That segment's expansion was led by Optical Networks, which recorded a 20% jump in revenue. Mobile Infrastructure sales advanced 3% on a constant currency basis, helped by gains in Core Software and Technology Standards; within Mobile Infrastructure, Radio Networks was broadly flat.
Sales tied to AI and cloud customers rose sharply, surging 49% and representing about 8% of group revenue for the quarter. During the period, Nokia also recorded approximately 1 billion euros of orders from these AI and cloud clients.
Outlook and management commentary
The company maintained its full-year comparable operating profit guidance, reiterating a target range of 2.0 billion to 2.5 billion euros. Chief Executive Justin Hotard said demand related to the AI "supercycle" was accelerating, prompting increased investment in optical and IP networks.
The results show an improving profitability trajectory driven by specific pockets of demand within the network business, while other areas such as Radio Networks remained flat in the quarter. Nokia's guidance remains contingent on trends that management highlighted as important contributors to current momentum.
Takeaway
Nokia's first-quarter performance reflected stronger demand for optical and AI-focused infrastructure, lifting sales and margins and allowing the company to reaffirm its full-year operating profit outlook.