Nokia's Leadership Shift: AI Ambitions Amid Financial Strains

Nokia's chair Sari Baldauf plans to step down as Timo Ihamuotila is proposed as her successor amid AI-driven strategies. Despite meeting earnings expectations, Nokia's share fell 6% due to profit warnings. The company focuses on AI and data centers to counteract challenges in the 5G sector.

Nokia announced that Sari Baldauf, its longstanding chair, will step down, with Timo Ihamuotila proposed as her successor. This leadership change comes as Nokia seeks to bolster its artificial intelligence strategies to meet quarterly earnings expectations.

Despite positive earnings, Nokia shares dropped 6% due to profit warnings and currency challenges. The company remains focused on restructuring, leveraging AI and data center demand to strengthen its position, especially in light of 5G sector weaknesses.

With fourth-quarter sales reaching 6.12 billion euros, driven by Optical Networks, Nokia maintains its dividend payout. Analysts describe the 2026 profit forecast as somewhat conservative, reflecting the firm's cautious optimism in navigating current economic pressures.

(With inputs from agencies.)