Nokia reported strong third quarter 2026 results with reported net sales increasing 10% to €5.15 billion, driven by an acceleration in AI and cloud infrastructure demand. Comparable operating margins expanded significantly by 220 basis points to 11.7%, reflecting improved operating leverage and efficiency. While the Network Infrastructure segment saw robust 15% constant currency growth, the company also noted that the Infinera integration is trending one year ahead of schedule, with completion now targeted for the end of 2026.
Key Highlights
- Net sales to AI & Cloud customers surged 123% year-over-year to €631 million, supported by a strong order intake of €1.5 billion.
- IP Networks grew 43% on a constant currency basis, fueled by high-capacity data center switching and routing demand.
- The company lowered its free cash flow conversion target for the full year to 35%–55% due to a €400 million working capital investment to support 2027 growth opportunities.