Nokia’s Capital Markets Day 2025 outlines a bold plan to reposition the Finland-based telecom network company as a frontrunner in the AI-powered transformation of global networks.
With a simplified operating model, sharper financial targets and a clear focus on next-generation connectivity, Nokia, under the CEO Justin Hotard, aims to strengthen innovation, accelerate growth and unlock long-term shareholder value.
GSMA, in a recent research report, said telco AI activity in 2024 focused mainly on reducing costs by deploying low-risk solutions in customer care, network automation and predictive maintenance. While these use cases still dominate, operators are increasingly exploring AI-driven services aimed at generating new revenue.
This shift is most visible in the US, which accounts for twenty percent of AI deployments, and in China and other Asian markets, which represent 25 percent. Operators such as Verizon and SK Telecom are testing GPU-as-a-service, inference platforms and early AI factory models. The real measure of success will emerge as operators begin reporting commercial results in Q4 2025 and through 2026, which will indicate how effectively these new AI services can be monetised.
Below are the ten most critical points shaping Nokia’s strategy and targets for the coming years.
1. Driving Growth in AI and Cloud Solutions
Nokia is prioritizing advanced AI and cloud technologies to help operators modernize networks and automate operations. The goal is to support customers through the AI supercycle – delivering faster, more intelligent and more secure networks.
2. Leading the Shift to AI-Native Mobile Networks and 6G
With its new Mobile Infrastructure segment, Nokia aims to lead the transition to AI-native radio and core networks while shaping global 6G standards. The company is positioning itself as the trusted western provider for next-generation mobile innovation.
3. Co-innovation with Customers and Partners
Nokia plans to accelerate growth by working closely with service providers, hyperscalers, enterprises and governments. Co-innovation will focus on delivering tailored solutions for emerging AI, cloud, industrial and defense use cases.
4. Prioritizing Capital Where Nokia Can Win
The strategy concentrates investments in areas where Nokia holds strong differentiation – especially optics, IP networking, fixed broadband, radio networks, and technology standards. Non-core units will be reassessed under a new Portfolio Businesses segment.
5. Streamlined Operating Model with Two Core Segments
From 2026, Nokia will operate through Network Infrastructure and Mobile Infrastructure, simplifying execution and aligning product portfolios with customer demand. This restructuring supports faster innovation in response to the global AI and data center boom.
6. Growth Targets for Network Infrastructure
The company is aiming for net sales growth of six to eight percent between 2025 and 2028, with a 10-12 percent target for Optical and IP Networks combined. This reflects strong demand for high-capacity transport needed for AI workloads. Nokia’s Network Infrastructure segment reported 7.8 billion euro in revenue during Q4 2024 – Q3 2025.
7. Improved Profitability in Mobile Infrastructure
Nokia plans to lift Mobile Infrastructure gross margin to 48-50 percent by 2028 while growing operating profit beyond 1.5 billion euro baseline. This segment combines core software, radio networks and technology standards for united execution. Nokia’s Mobile Infrastructure segment reported 11.6 billion euro in revenue during Q4 2024 – Q3 2025.
8. Long-term Operating Profit Target of EUR 2.7 to 3.2 Billion
By 2028, Nokia aims to expand its annual comparable operating profit significantly from the 2 billion euro generated in the latest twelve-month period. This new target replaces previous long-term financial goals.
9. Cost Discipline and Leaner Corporate Structure
Group Common and Other operating expenses will be reduced to 150 million euro by 2028, down from the current 350 million euro run-rate. Streamlined leadership and clearer accountability support this focus.
10. Higher Free Cash Flow Conversion for Shareholder Value
Nokia targets free cash flow conversion of 65-75 percent from comparable operating profit, reinforcing its commitment to stable returns and disciplined capital allocation.
Nokia’s transformation centers on connecting intelligence at global scale. With renewed leadership, a sharper portfolio and firm financial targets, the company aims to shape the future of AI-driven networks while delivering sustainable value for customers, partners and investors.
Baburajan Kizhakedath