Nokia Q2 profit beats on AI data centers

Nokia posted solid second-quarter results driven by a pivot toward AI data-center infrastructure, with comparable operating profit up 18% year-on-year to €434 million and comparable net sales up 8% to €4.82 billion. The Network Infrastructure division led the gains, with Optical Networks up 20% and IP Networks up 16%, while sales to AI and cloud customers more than doubled to €446 million, supported by AI and cloud orders totaling €2.8 billion for the quarter. Mobile Networks sales rose 7% year-on-year to €2.68 billion as the company leverages diversification beyond legacy equipment. However, the reported operating result swung to a loss of €50 million due to accelerated restructuring charges and reclassification of certain units as discontinued operations, even as margins improved to 9.0% on a comparable basis. CEO Pekka Lundmark has framed the results as evidence that demand for AI-enabled data-center infrastructure is creating a lasting growth cycle, with continued strength in orders from major tech customers and a multi-year growth trajectory. The company’s broader strategy aims to capitalize on the AI data-center buildout while managing costs through restructuring and portfolio optimization.