Helsinki, April 23, 2026, 22:44 EEST
- Nokia shares jumped to highs not seen since April 2010, after the company’s first-quarter comparable operating profit topped expectations.
- Sales to AI and cloud customers shot up 49%. Nokia landed 1 billion euros in fresh orders from those accounts.
- The company bumped up its 2026 growth outlook for Network Infrastructure, though it’s sticking with the same full-year profit target.
Nokia Oyj stock surged to levels not seen in 16 years on Thursday, after the Finnish network gear maker topped first-quarter profit forecasts and lifted its growth outlook for AI and cloud services. That’s a stark shift for a company usually pegged as a staid telecom supplier.
Timing is key here. Nokia wants to show that the AI data center boom isn’t just a win for U.S. chipmakers—it’s also about fibre, optical transport, and IP networks. Hyperscalers, the likes of major cloud players and top data center operators, depend on high-speed fibre to shuttle massive volumes of data between servers and locations.
Nokia shares finished regular Helsinki trading at 9.05 euros, up 6.35%, according to market data. Earlier in the session, the stock peaked at 9.52 euros. That’s a price territory Nokia hasn’t seen since its handset era.
First-quarter comparable operating profit jumped 54% to 281 million euros, topping the 250 million euro forecast from analysts surveyed by Infront. Comparable net sales landed at 4.5 billion euros, roughly matching what the market had anticipated.
Nokia reported a 4% rise in comparable net sales from a year earlier, measured at constant currency and adjusted for portfolio changes. The comparable gross margin jumped 320 basis points, reaching 45.5%. For context, a basis point equals one-hundredth of a percentage point—industry shorthand for tracking margin movements.
Nokia CEO Justin Hotard said the company is now betting on bigger growth in its Optical and IP Networks units, with a sharper focus on AI and cloud customers. Sales to that segment jumped 49%, Hotard noted, now making up 8% of group revenue.
Nokia is now projecting the addressable AI and cloud market will expand at a 27% compound annual growth rate from 2025 to 2028, a sizable jump from the 16% rate it had forecast back in November. The company also revised its 2026 Network Infrastructure sales growth outlook, raising it to a range of 12% to 14%—previously, it was guiding for 6% to 8%.
The company stuck to its full-year comparable operating profit forecast of 2.0 billion to 2.5 billion euros. Hotard pointed out Nokia is running “somewhat above” the midpoint, crediting robust demand in Optical Networks and IP Networks. Reuters
Shareholders are set for a payout as well. Nokia’s board approved a 0.04 euro per share dividend, with April 28 marked as the record date and payment scheduled for May 7.
The surge only highlighted the divergence within the broader telecom equipment landscape. Ericsson—Nokia’s main Nordic rival—fell short of first-quarter core profit forecasts last week as AI-fueled demand drove chip expenses higher and North American sales lost momentum. Not every supplier is benefiting equally from the AI wave.
Still, there’s execution risk hanging over the Nokia trade. Management pointed to free cash flow conversion hinging on when customers pay up, along with trends in regional demand and capex. Ongoing fierce competition remains a headache, too. Slow AI order conversion or aggressive pricing from rivals could quickly sap enthusiasm after the stock’s jump to a 16-year high, leaving little buffer.
Hotard flagged a bigger issue beyond Nokia’s walls: Europe’s shortage of AI data-center capacity and funding. He told Reuters the gap could push developers and companies toward the U.S. or China unless Europe ramps up connectivity and builds out its data-center infrastructure quickly.
