Nokia (HEL: NOKIA) Q2 Sales Rise 8% as AI and Cloud Demand Boost Revenue Despite Lower Profit

On 23 July 2026, Nokia (HEL: NOKIA) reported better-than-expected second-quarter results as net sales increased 8% from a year earlier, helped by rising demand for AI infrastructure and cloud networking. 

Higher spending from hyperscale data centre customers supported revenue growth, although reported profit fell because of restructuring costs. The results leave investors asking whether Nokia’s AI business can continue driving earnings growth while the company manages near-term cost pressures.

Nokia Q2 2026 Earnings Snapshot

Nokia delivered a solid second quarter, showing steady progress in its shift towards AI infrastructure. The Finnish telecom equipment company reported net sales of €4.82 billion, up 8% year over year and 9% on a constant currency basis. Comparable operating profit rose 18% to €434 million, ahead of the €382 million forecast by analysts tracked by LSEG.

The headline profit figure told a different story. Higher restructuring expenses related to Nokia’s ongoing cost-cutting programme weighed on reported earnings. Even so, the underlying business improved. Revenue increased, margins strengthened, and comparable profit came in above expectations, which kept investors focused on the company’s operating performance rather than one-off charges.

AI and Cloud Customers Become Nokia’s Biggest Growth Driver

Why is AI demand driving Nokia’s growth?

Artificial intelligence has become the fastest-growing part of Nokia’s business. Revenue from AI and cloud customers climbed 105% year over year to €446 million, while new AI and cloud orders reached €2.8 billion during the quarter. Most of that demand came from hyperscale companies expanding AI data centres across North America and other major markets.

nokia's network infrastructure biz just printed $3.2B in AI and cloud orders in Q2, up from $1.1B the quarter before. nearly tripled.

the part the market is still sleeping on: they're not a handset company anymore. they're a datacenter networking play hiding in plain sight.… pic.twitter.com/SQPXuEwXH9

— Leopold Money Tracker (@LeopoldQF) July 23, 2026

As AI workloads continue to grow, customers need faster and more reliable networks. Nokia’s fibre, optical networking and IP routing products are helping meet that demand. Chief Executive Justin Hotard said customer demand remains strong, although supply constraints are still affecting parts of the industry.

How does the Nvidia partnership support Nokia?

Nokia is expanding beyond its traditional telecom customer base. Its partnership with Nvidia strengthens its position in AI networking and data centre infrastructure, giving the company greater exposure to enterprise technology spending.

Instead of depending mainly on mobile network investment, Nokia is supplying networking technology to cloud providers building AI infrastructure. That broader customer mix could provide more consistent growth as enterprise AI investment continues.

Why Reported Profit Fell Despite Strong Sales Growth?

Revenue moved higher, but reported operating profit came under pressure as Nokia accelerated restructuring programmes, particularly in Europe. The company also faced higher memory chip costs as demand for AI hardware pushed semiconductor prices higher.

Management expects those pressures to ease over time. Comparable gross margin improved to 46.0%, suggesting the underlying business remains in good shape. Investors often focus more on comparable earnings because they remove one-time restructuring costs and provide a clearer view of operating performance.

Network Infrastructure Leads Nokia’s Growth Story

Which business segments performed best?

Network Infrastructure remained Nokia’s strongest business during the quarter. Revenue from the division increased 12%, with Optical Networks growing 20% and IP Networks rising 16%. Mobile Infrastructure also returned to growth while maintaining stable profitability.

The results show that enterprise networking is becoming a larger part of Nokia’s business. Strong demand from AI data centres is helping offset weaker spending from traditional telecom operators.

Meyka stock view

According to Meyka, Nokia’s outlook remains positive as AI infrastructure spending continues to support revenue growth. The platform notes that momentum is improving, although investors should watch whether the company’s growing AI order book converts into revenue over the next few quarters. An AI stock analysis tool can also help investors monitor earnings trends, valuation changes and technical indicators alongside quarterly results.

Technical analysis summary

• The overall trend remains positive following the earnings report.
• Strong AI-related orders continue to support the longer-term outlook.
• Restructuring costs could keep the stock volatile in the short term.

Other market analysts also remain constructive after Nokia raised its full-year profit guidance, although they continue to monitor supply chain costs and component pricing.

Outlook: Can Nokia Sustain AI-Driven Momentum?

Nokia raised its 2026 comparable operating profit guidance to €2.1 billion to €2.6 billion, reflecting confidence in continued demand for AI and cloud infrastructure. Management expects enterprise networking and AI-related investment to remain the main drivers of growth during the second half of the year.

Investors will be watching AI order conversion, supply chain conditions and pricing trends over the coming quarters. If demand continues at the current pace, Nokia should be well placed to expand its position in AI networking and connectivity.

Conclusion

Nokia entered the second half of 2026 with stronger sales, higher comparable earnings and increased full-year guidance. AI infrastructure and cloud networking continue to drive growth, even as restructuring costs weigh on reported profit. The next few quarters will depend on how quickly AI orders translate into revenue and whether the company can maintain margins while managing supply chain and cost pressures.

Disclaimer:

The content shared by Meyka AI PTY LTD is for research and informational purposes only. Meyka is not a financial advisory service, and the information provided should not be treated as investment or trading advice.