Nokia's Strategic Shift Brings Unexpected Profit Boost

Nokia reported higher-than-expected third-quarter profits amid a strategic shift away from passive venture fund investments. Profits reached 435 million euros, surpassing analyst expectations. Despite challenges, Nokia slightly upgraded its annual profit forecast. The company is also adjusting its investment reporting strategy to better align with financial performance goals.

Nokia, the Finnish telecom equipment maker, surprised markets with a stronger-than-expected third-quarter profit, attributed to its strategic move to scale down passive venture fund investments. The company's operating profit for Q3 reached 435 million euros, significantly above the analyst forecast of 342 million euros.

This performance comes amid Nokia's attempts to navigate U.S. tariffs, a market slowdown, and a weaker dollar. In July, Nokia issued a profit warning but has now slightly raised its 2023 profit expectations to between 1.7 billion and 2.2 billion euros, signaling cautious optimism for the second half of 2025 despite a major contract loss with AT&T to Ericsson.

CEO Justin Hotard noted the adjustment in reporting passive investment returns, now reflected in financial income and expenses, as part of the company's refined investment strategy. Nokia is set to continue making selective investments to enhance its growth strategy.

(With inputs from agencies.)