Nokia's Strategic Shift: Leadership Change and AI Expansion

Nokia announces the impending departure of chair Sari Baldauf and nominates Timo Ihamuotila as her successor. Despite meeting quarterly earnings expectations with a push into artificial intelligence, Nokia's shares dropped. They continue restructuring efforts, focusing on AI, despite challenges like US tariffs and currency fluctuations.

Nokia announced significant leadership changes as longstanding chair Sari Baldauf plans to step down, with Timo Ihamuotila proposed as her successor. This comes as the telecom giant, despite integrating artificial intelligence to meet quarterly earnings expectations, witnessed a 6% drop in shares on the Stoxx 600 index.

Under Baldauf's tenure, Nokia has seen substantial growth and challenges, including a 3% decline in comparative operating profit reached at 1.05 billion euros. With hopes pinned on AI and data center demand to mitigate the stagnation in 5G, Nokia's strategic pivot continues amidst economic pressures.

While the Optical Networks division led a 17% sales increase, Nokia's future outlook remains cautious, projecting operating profits between 2 billion and 2.5 billion euros. The dividend remains stable, reflecting a conservative yet steady approach amid ongoing challenges.

(With inputs from agencies.)