Nokia rides AI boom as network demand lifts Q1 performance

Nokia started the year with solid Q1 growth from surging demand for AI and cloud infrastructure and steady performance in its mobile business.

Q1 net sales of €4.5 billion (around £3.9 billion) were up four per. Operating profit sharply, was up 54 per cent to €281 million (around £245 million), and margins increased to 6.2 per cent.

Growth was led by Nokia’s Network Infrastructure division. Revenues rose six per cent, fuelled by a 20 per cent increase in Optical Networks. Demand from AI and cloud customers jumped 49 per cent, now accounting for eight per cent of total group sales.

“We are seeing good traction in IP Networks, with pipeline growth driven by new design wins and deeper penetration into AI & Cloud use cases inside the data centre”, said Nokia CEO Justin Hotard.

Nokia is increasing investment in optical networking t with the AI and cloud market now forecast to grow at a 27 per cent through 2028.

Mobile Infrastructure delivered more modest growth. Revenues were up three per cent Radio Networks remained flat.

Regionally, EMEA, including the UK, saw mobile infrastructure sales rise 13 per cent, from investment in 5G and standalone networks.

Nokia expects Network Infrastructure to grow between 12 per cent and 14 per cent in 2026, led by Optical and IP Networks