Nokia Surprises with Strong Q3 Profits Amidst Challenges

Finland's Nokia exceeded profit expectations in Q3 due to strong optical and cloud demand, partly from AI-driven data centers following its Infinera acquisition. Despite challenges like U.S. tariffs and a weaker dollar, Nokia saw a 12% sales increase. The firm plans slight revisions to its annual operating profit forecast.

Nokia, the Finnish telecom giant, delivered a surprising performance in the third quarter with profits soaring past analysts' expectations. Key drivers of this success were robust demands in the optical and cloud sectors, further bolstered by the company's strategic acquisition of American optical networking firm Infinera.

Despite headwinds such as U.S. tariffs, a slowing market, and a weaker dollar impacting its operations earlier this year, Nokia reported a 12% rise in net sales, reaching 4.83 billion euros. This growth was largely attributed to surging demands in Optical Networks and cloud services.

Nokia has slightly adjusted its annual profit forecast upwards to account for stronger-than-expected results, driven by AI and data center demands. CEO Justin Hotard highlighted the continued acceleration of these sectors, reinforcing Nokia's strategic pivot towards emerging technologies.

(With inputs from agencies.)