Prime Highlights
- Nokia’s growth was supported by rising demand from AI and cloud customers.
- Optical Networks emerged as a key driver within the Network Infrastructure segment.
Key Facts
- Nokia Corporation is a global provider of telecom network equipment and services.
- The company recorded €1 billion in AI and cloud-related orders in one quarter.
Background
Nokia Corporation reported a modest rise in its first-quarter performance, helped by stronger demand from AI and cloud-related clients. The company posted net sales of €4.5 billion, marking a 4% increase compared to the same period last year on a constant currency basis.
A large part of this growth came from its Network Infrastructure business, which expanded 6% year-on-year. Within that, Optical Networks performed strongly, recording a sharp jump in sales. The company also saw a noticeable rise in demand from AI and cloud customers. Revenue from this segment grew 49% and now forms a small but increasing share of overall sales. Orders from these clients touched €1 billion during the quarter.
The different parts of the system showed different levels of performance. The mobile infrastructure segment showed minimal growth while core software maintained its continuous development. The Radio Networks section showed stable performance while the Technology Standards section made moderate progress.
The company achieved better margins through successful cost management and product mix management efforts. The company achieved growth in both gross margin and operating margin. Earnings, however, remained relatively low. The company reported limited per-share profit, though it generated solid cash flow and maintained a stable cash position.
Looking ahead, Nokia kept its full-year profit outlook unchanged. It expects stronger growth in its Network Infrastructure segment, especially in IP and Optical Networks.
The board also approved a dividend payout for shareholders, which is scheduled to be distributed in the second week of May.
