TLDR Nokia stock sinks nearly 15% even as IP Networks sales climb 43% year over year. AI and cloud sales jump 123%, but Nokia shares still tumble almost 15% on Thursday. Nokia’s comparable op
Nokia shares plunged 14.97% to $7.86 despite rising revenue and stronger demand for artificial intelligence networks. The Finnish company reported sharp IP Networks growth alongside higher cloud customer demand. However, restructuring charges weighed on reported profitability, while the company maintained its full-year 2026 financial outlook.
Nokia generated EUR 5.15 billion in third-quarter revenue, an increase of 10% from the previous year. Sales grew 9% after adjustments for currency movements, supported by stronger network infrastructure activity. The company recorded more orders from customers building networks for computing facilities.
Network Infrastructure revenue reached EUR 2.16 billion, representing 15% growth at constant exchange rates. Within that business, IP Networks grew 43%, while Optical Networks increased 18% over the year. These products carry data between servers, facilities and other network components.
Mobile Infrastructure contributed EUR 2.90 billion in sales, up 5% from a year earlier. Some fourth-quarter revenue shifted into the third quarter. Meanwhile, the segment benefited from its product mix, spending controls and continued cost reductions.
Nokia reported EUR 605 million in comparable operating profit, up 35% from the prior year. Its comparable operating margin improved to 11.7%, compared with 9.5% one year earlier. Revenue growth and tighter operating expenses helped support that improvement.
However, reported operating profit fell 22% to EUR 196 million as restructuring and integration expenses increased. The reported operating margin slipped to 3.8%, while reported gross margin decreased to 42.2%. Comparable gross margin remained largely stable at 44.6%.
Comparable diluted earnings reached EUR 0.09 per share, compared with EUR 0.06 previously. Reported diluted earnings from continuing operations stood at EUR 0.03 per share. Despite the weaker reported operating result, quarterly net profit increased to EUR 156 million.
Sales to AI and cloud customers surged 123%, while related order intake increased 118%. Nokia secured EUR 1.5 billion in new quarterly orders from these customers. Its existing backlog also supports future demand for high-capacity network equipment.
The company expects combined Optical and IP Networks growth of 25% to 30% in 2027. Nokia also plans to finish integrating its acquisition of Infinera by year-end, one year ahead of schedule. Management projects EUR 200 million in net synergies from that integration.
Nokia is working with Google on connectivity linked to its EUR 13 billion investment in Finland. Separately, Nokia completed a live-network AI-RAN call with T-Mobile and NVIDIA. The company kept its full-year outlook unchanged despite the steep decline in its share price.
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