Nokia reported 10 percent growth in Q3 2026 revenue to €5.154 billion, driven by strong demand for IP networks, optical infrastructure and AI data center connectivity. The Finnish telecom equipment company secured €1.5 billion in new AI and Cloud orders during the quarter, highlighting its expanding business with hyperscalers and cloud infrastructure customers.
Nokia’s Q3 2026 financial result indicated that its operating profit increased 35 percent to €605 million from €448 million a year earlier. Operating margin improved by 220 basis points to 11.7 percent, supported by higher revenue, operating efficiencies and cost reduction initiatives.
However, operating profit declined 22 percent to €196 million, reflecting restructuring and integration expenses. Net profit increased 95 percent to €156 million.
For January–September 2026, Nokia generated revenue of €14.402 billion, up 7 percent, while operating profit rose 31 percent to €1.340 billion.
Nokia AI and Cloud Revenue Surges 126% as Orders Reach €1.5 Billion
AI and Cloud emerged as Nokia’s fastest-growing customer segment, with quarterly revenue increasing 126 percent to €631 million from €279 million in Q3 2025.
Nokia secured €1.5 billion, registering growth of 118 percent, in AI and Cloud orders in Q3, supported by investments in artificial intelligence infrastructure, data center networking, optical transport and IP routing.
AI and Cloud customers contributed approximately 12.2 percent of Nokia’s quarterly revenue, compared with 5.9 percent a year earlier.
For the first nine months of 2026, revenue from AI and Cloud customers reached €1.425 billion, increasing 110 percent from €680 million.
The company expects Optical Networks and IP Networks revenue to grow between 25 percent and 30 percent in 2027, reflecting its strong order backlog and rising demand for AI infrastructure connectivity.
Nokia Network Infrastructure Revenue Grows 17% to €2.16 Billion
Nokia’s Network Infrastructure division generated €2.158 billion in Q3 revenue, increasing 17 percent from €1.850 billion a year earlier.
The division reported operating profit of €216 million, up 51 percent, while operating margin improved to 10 percent from 7.7 percent.
Growth was led by IP Networks and Optical Networks, although Fixed Networks revenue declined.
Nokia Network Infrastructure Q3 2026 Performance
| Business | Revenue | YoY growth |
| IP Networks | €839 million | +45% |
| Optical Networks | €933 million | +19% |
| Fixed Networks | €386 million | −21% |
| Network Infrastructure | €2.158 billion | +17% |
IP Networks revenue increased 45 percent, supported by AI and Cloud customers, telecommunications providers and mission-critical enterprise customers.
Optical Networks revenue grew 19 percent, driven by demand for data center interconnect, optical transport and AI infrastructure connectivity.
Fixed Networks revenue declined 21 percent as Nokia prioritized higher-margin products and services. However, the business recorded strong year-on-year order intake growth.
The Americas represented the largest market for Network Infrastructure, generating €1.147 billion in revenue, up 25 percent.
Nokia’s investments in optical transport and IP routing are aligned with rising demand for AI data center infrastructure, including connectivity between hyperscale computing facilities.
Nokia Mobile Infrastructure Revenue Reaches €2.90 Billion
Nokia’s Mobile Infrastructure business reported quarterly revenue of €2.902 billion, increasing 5 percent year over year.
Operating profit increased 18 percent to €420 million, while operating margin improved to 14.5 percent from 12.9 percent.
Mobile Infrastructure Q3 2026 Performance
| Business | Revenue | YoY growth |
| Radio Networks | €1.958 billion | +11% |
| Core Software | €519 million | −13% |
| Technology Standards | €425 million | +9% |
Radio Networks delivered 11 percent reported revenue growth, supported by stronger demand in Europe, the Middle East, Africa and Asia-Pacific, particularly Japan and India.
Part of the increase reflected revenue originally expected in Q4 being recognized during Q3.
Core Software revenue declined 13 percent because of weakness in selected applications and supply constraints affecting server infrastructure.
Technology Standards revenue increased 9 percent to €425 million, supported by patent licensing agreements signed during the preceding four quarters.
Nokia continues to invest in 5G Advanced and 6G network technologies to strengthen its position in future mobile infrastructure deployments.
Nokia Regional Revenue: EMEA Leads with €2.15 Billion
Europe, the Middle East and Africa remained Nokia’s largest regional market, generating €2.152 billion in Q3 2026 revenue, up 12 percent.
The Americas contributed €1.833 billion, increasing 9 percent, while Asia-Pacific revenue rose 7 percent to €1.169 billion.
| Region | Q3 2026 revenue | YoY growth |
| Europe, Middle East and Africa | €2.152 billion | +12% |
| Americas | €1.833 billion | +9% |
| Asia-Pacific | €1.169 billion | +7% |
| Total | €5.154 billion | +10% |
EMEA accounted for approximately 42 percent of Nokia’s revenue, followed by the Americas at 36 percent and Asia-Pacific at 23 percent.
Network Infrastructure recorded particularly strong demand in the Americas, while Mobile Infrastructure benefited from radio network investments in EMEA and Asia-Pacific.
Telecom Operators Remain Nokia’s Largest Customer Group
Telecommunications providers contributed €3.640 billion in Q3 revenue, increasing just 1 percent year over year.
They accounted for approximately 71 percent of Nokia’s total quarterly sales, demonstrating the company’s continued dependence on telecom operator capital expenditure.
Revenue from mission-critical enterprise and defense customers increased 8 percent to €459 million, while technology licensee revenue rose 9 percent to €425 million.
The contrast between 1 percent growth from telecom providers and 126 percent growth from AI and Cloud customers illustrates the increasing importance of data center and cloud infrastructure investment to Nokia’s business.
Nokia Partners with Google, NVIDIA and T-Mobile for AI Infrastructure
Nokia highlighted its partnership with Google supporting the technology company’s €13 billion investment in Finland.
The partnership demonstrates Nokia’s strategy of providing optical and IP networking infrastructure required to connect large-scale AI computing facilities.
In mobile infrastructure, Nokia completed an AI-RAN call on a live T-Mobile network in collaboration with NVIDIA.
The development represents progress toward AI-native radio access networks, where artificial intelligence can support network performance, efficiency and future service capabilities.
Nokia is developing its AI-RAN platform with a focus on performance and spectral efficiency as it moves toward commercial deployment.
These initiatives strengthen Nokia’s position across two emerging opportunities: AI data center networking and AI-powered mobile infrastructure.
Nokia Accelerates Infinera Integration and Restructuring
Nokia expects to complete the integration of Infinera by the end of 2026, one year ahead of its original schedule.
The company targets €200 million in net synergies from the integration, which is intended to strengthen its optical networking business.
Nokia recorded €357 million in restructuring and associated charges during Q3, compared with €44 million a year earlier.
The company has increased its full-year restructuring charge assumption to €1.1 billion, with related cash outflows expected between €800 million and €900 million.
As part of its portfolio simplification strategy, Nokia completed the sale of its Fixed Wireless Access customer premises equipment business to Inseego in October 2026.
Nokia also announced an agreement for AURELIUS to acquire its Enterprise Campus Edge business, with completion expected during the first half of 2027.
Nokia 2026 Outlook: Operating Profit Target of €2.1–2.6 Billion
Nokia maintained its full-year 2026 comparable operating profit outlook of €2.1 billion to €2.6 billion.
The company expects Network Infrastructure revenue to grow 12–14 percent on a constant-currency and portfolio-adjusted basis.
Capital expenditure is projected at €750 million to €850 million, while Nokia plans an additional €400 million investment in working capital during 2026 to secure supply and support growth opportunities in 2027.
Nokia expects Q4 revenue to increase 20–24 percent sequentially, reflecting normal seasonal demand.
Despite stronger revenue and comparable profitability, free cash flow was negative €99 million in Q3, compared with positive €429 million a year earlier. Net cash and interest-bearing financial investments stood at €2.584 billion at the end of September.
Nokia’s Q3 2026 financial results indicate that AI and Cloud infrastructure is becoming an increasingly important growth driver, while telecom operator spending remains relatively subdued.
The company’s ability to convert its €1.5 billion AI and Cloud order intake into revenue, achieve its Infinera integration savings and improve cash generation will be important indicators of its performance in 2027.
BABURAJAN KIZHAKEDATH
