Telecom network maker Nokia has revealed that its sales revenue rose 12 percent to €4.828 billion during the third-quarter of 2025.
Nokia’s sales from Network Infrastructure grew 28 percent to €1.953 billion.
Nokia’s sales from mobile networks business fell 1 percent to €1.842 billion.
Nokia’s sales from Cloud and Network Services rose 8 percent to €645 million.
Nokia’s sales from Technologies grew 11 percent to €391 million.
“The AI supercycle is accelerating demand for providers of advanced and trusted connectivity. Nokia is uniquely positioned to be a leader in this market,” said Justin Hotard, President and CEO, Nokia.
Network Infrastructure delivered 11 percent net sales growth, with Optical Networks up 19 percent, fueled largely by AI and cloud customers. Order intake remained strong, with a book-to-bill ratio above 1. Nokia launched its new 800G ZR/ZR+ pluggables for data center interconnects, now shipping to a major U.S. customer, and announced plans to open a second Indium Phosphide semiconductor fab in San Jose next year to meet rising optical component demand. A new strategic partnership with Nscale designates Nokia as a preferred networking vendor for data center buildouts. AI and cloud customers contributed 6 percent of total group sales and 14 percent of Network Infrastructure sales.
Cloud and Network Services posted 13 percent growth, supported by continued operator investments in 5G Core. Nokia’s cloud-native 5G Core gained traction, and the company achieved the #1 market share position in Voice Core (Dell’Oro, excluding China). Mobile Networks grew 4 percent, reflecting market stabilization, and Nokia re-entered VodafoneThree’s network as a major radio supplier. Nokia Technologies maintained strong performance, with an annualized EUR 1.4 billion in net sales.
At the group level, gross margin declined by 150 basis points, impacted by product mix and lower software contribution from Mobile Networks. Operating margin remained stable year-on-year, excluding a one-time gain from the prior year.
Nokia will scale down its passive venture fund investments, reclassifying them under financial income and expenses. However, it may still make targeted strategic minority investments that align with its growth priorities.
The company reaffirmed its full-year outlook, updating its comparable operating profit guidance to EUR 1.7–2.2 billion, tracking toward the midpoint.
Looking ahead, Nokia will outline its growth and operating leverage strategy at its Capital Markets Day in New York on November 19.
Baburajan Kizhakedath
