TECH & GAMING
Advocates Philippines
Nokia Posts Solid Q3 Growth; Rides AI And Cloud Momentum
Photo credit: NOKIA
Nokia is keeping its growth trajectory steady. The tech giant reported a solid third-quarter performance for 2025, with comparable net sales rising 9% year-on-year on a constant currency basis (12% reported) — signaling that its strategic bets on AI, cloud, and 5G are gaining traction.
“All our business groups grew this quarter,” said Justin Hotard, Nokia’s President and CEO, in a statement on Friday. “Network Infrastructure delivered 11% net sales growth. Optical Networks grew 19%, coming largely from AI & Cloud customers.”
The Optical Networks division led the charge, buoyed by rising demand from AI and cloud data center operators. Nokia’s new 800G ZR/ZR+ pluggables for data center interconnect have started shipping to a large U.S. customer, and the company plans to open a second Indium-Phosphide semiconductor facility in San Jose before the end of 2026 to meet growing optical component demand.
Cloud and Network Services also delivered a strong quarter, climbing 13%, thanks to continued operator investments in 5G Core technology. Hotard noted that Nokia now holds the #1 global market share in Voice Core (excluding China) for the first half of 2025, according to Dell’Oro.
While the company’s comparable gross margin dipped to 44.2% due to product mix shifts, Nokia remains on track to meet its full-year outlook. Its comparable operating margin stood at 9%, with free cash flow of EUR 0.4 billion and net cash reserves of EUR 3 billion.
Following a strategic review, Nokia changed how it accounts for venture fund investments, moving related gains and losses from “operating profit” to “financial income and expenses.” The technical adjustment prompted a modest upward revision to its full-year operating profit guidance — now projected between EUR 1.7 billion and 2.2 billion.
Looking ahead, Hotard teased what’s next for the company:
“At our Capital Markets Day in New York on November 19, we will share our strategy to unlock the full potential of our portfolio. The AI supercycle is accelerating demand for advanced and trusted connectivity — and Nokia is uniquely positioned to be a leader in this market.”
Despite margin pressures, Nokia’s steady growth across all business units and its strengthening foothold in AI-driven infrastructure signal that the Finnish firm is well-positioned to close 2025 on a strong note.
“All our business groups grew this quarter,” said Justin Hotard, Nokia’s President and CEO, in a statement on Friday. “Network Infrastructure delivered 11% net sales growth. Optical Networks grew 19%, coming largely from AI & Cloud customers.”
The Optical Networks division led the charge, buoyed by rising demand from AI and cloud data center operators. Nokia’s new 800G ZR/ZR+ pluggables for data center interconnect have started shipping to a large U.S. customer, and the company plans to open a second Indium-Phosphide semiconductor facility in San Jose before the end of 2026 to meet growing optical component demand.
Cloud and Network Services also delivered a strong quarter, climbing 13%, thanks to continued operator investments in 5G Core technology. Hotard noted that Nokia now holds the #1 global market share in Voice Core (excluding China) for the first half of 2025, according to Dell’Oro.
While the company’s comparable gross margin dipped to 44.2% due to product mix shifts, Nokia remains on track to meet its full-year outlook. Its comparable operating margin stood at 9%, with free cash flow of EUR 0.4 billion and net cash reserves of EUR 3 billion.
Following a strategic review, Nokia changed how it accounts for venture fund investments, moving related gains and losses from “operating profit” to “financial income and expenses.” The technical adjustment prompted a modest upward revision to its full-year operating profit guidance — now projected between EUR 1.7 billion and 2.2 billion.
Looking ahead, Hotard teased what’s next for the company:
“At our Capital Markets Day in New York on November 19, we will share our strategy to unlock the full potential of our portfolio. The AI supercycle is accelerating demand for advanced and trusted connectivity — and Nokia is uniquely positioned to be a leader in this market.”
Despite margin pressures, Nokia’s steady growth across all business units and its strengthening foothold in AI-driven infrastructure signal that the Finnish firm is well-positioned to close 2025 on a strong note.
Oct 24, 2025
We are dedicated storytellers with a passion for bringing your brand to life. Our services range from news and media features to brand promotion and collaborations.
Interested? Visit our
Contact Us page for more information. To learn more about what we offer, check out our latest article on services and opportunities.
