Finnish telecom equipment manufacturer Nokia Corporation reported a stronger-than-expected rise in quarterly profit on Thursday, driven by surging demand from artificial intelligence and cloud infrastructure customers.
The company posted a 54% jump in comparable operating profit to €281 million for the first quarter of 2026, beating analyst expectations of €250 million based on a survey by Infront.
Nokia also revealed it booked €1 billion in orders, reflecting strong momentum from AI-related infrastructure spending, particularly among large cloud service providers known as hyperscalers.
Comparable net sales for the quarter stood at €4.5 billion, broadly in line with market forecasts. However, revenue from AI and cloud customers rose sharply by 49%, underscoring the growing importance of data-driven infrastructure demand.
A key driver of the performance has been increased investment in artificial intelligence data centres, which rely heavily on high-capacity fibre optic networks and optical transport systems. These systems are critical for handling the massive data loads generated by AI applications.
Once known primarily for its mobile phone dominance, Nokia has in recent years repositioned itself as a major player in 5G infrastructure and now ranks among the world’s leading manufacturers of optical transport systems, following its acquisition of U.S.-based Infinera.
Analysts say the company’s turnaround reflects a broader industry shift, where telecom equipment makers are benefiting indirectly from the AI boom, even as they compete for contracts tied to expanding cloud infrastructure.
The latest results reinforce Nokia’s growing exposure to the fast-expanding AI and cloud ecosystem, which continues to reshape global demand for high-performance networking equipment.
