Nokia has reported a bigger-than-expected rise in its operating profit for the second quarter of 2026, boosted by increased sales from AI and cloud customers.

Comparable operating profits jumped 18% to €434m for the three months to the end of June, surpassing analyst predictions, driven by a 9% increase in year-on-year net sales to €4.82bn. 

In Nokia’s Network Infrastructure division, the Optical Networks and IP Networks lines of business reported double-digit year-on-year sales increases (up by 20% to €868m and 16% to €679m, respectively), driven in particular by demand from datacentre operators. 

The vendor noted that revenues from AI and cloud customers leaped by 105% to €446m, while revenues generated from telecom operators increased by 4% to just over €3.5bn. 

Nokia also noted it received orders worth €2.8bn from its AI and cloud customers during the second quarter, at least half of which it expects to convert to revenue during the next 12 months.

Network Infrastructure remained the company’s strongest-performing segment in terms of growth, with net sales increasing 12% year on year on a constant currency basis to €2.04bn. Mobile Infrastructure also delivered a solid performance, with net sales rising 7% year on year to €2.68bn.

“Q2 demonstrates our strategy is delivering results. Since we set out our plan late last year, Team Nokia has focused on maximising our opportunity in the AI super cycle,” said the vendor’s CEO, Justin Hotard. “I am encouraged by the execution and progress we have made in a short period of time. We enter the second half with momentum and remain on track to deliver somewhat above the midpoint of our comparable operating profit guidance. 

“As AI evolves, trusted connectivity becomes even more critical, and we are delivering market-leading innovation that helps customers differentiate and capture value in this new era,” added the CEO. 

The news comes just a week after Nokia unveiled its new AI-RAN platform, integrating its anyRAN software with partner Nvidia’s Aerial AI-RAN to create what it called the “industry’s first AI-native RAN platform”.

  - James Pearce, Contributing Editor, TelecomTV