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HELSINKI - Nokia Corporation reported a 9% year-over-year increase in comparable net sales for the third quarter of 2025, with growth across all business segments and a particularly strong 19% surge in its Optical Networks division.
The Finnish telecommunications equipment maker raised its full-year comparable operating profit outlook to between €1.7 billion and €2.2 billion, up from the previous guidance of €1.6 billion to €2.1 billion. The company attributed this adjustment to a change in how it reports venture fund investments, which will now be included in financial income and expenses rather than affecting operating profit.
Nokia’s third-quarter comparable operating margin decreased to 9.0% from 11.2% a year earlier, which the company said would have been stable year-over-year excluding a one-time provision reversal benefit in the prior year. Comparable diluted earnings per share remained unchanged at €0.06.
The Network Infrastructure unit delivered 11% net sales growth, while Cloud and Network Services grew by 13% and Mobile Networks by 4%. The company reported that AI and Cloud customers accounted for 6% of group-level net sales and 14% for Network Infrastructure.
"We delivered a solid performance in Q3 with net sales growing 9% and all business groups growing," said Justin Hotard, President and CEO. "The AI supercycle is accelerating demand for providers of advanced and trusted connectivity. Nokia is uniquely positioned to be a leader in this market."
The company’s gross margin declined 150 basis points to 44.2% compared to the previous year, which Nokia said was due to product mix effects in Network Infrastructure and Mobile Networks.
Nokia’s Board of Directors resolved to distribute a dividend of €0.03 per share, with payment scheduled for November 6, 2025.
The company plans to share its strategy to "unlock the full potential" of its portfolio at its Capital Markets Day in New York on November 19, according to the press release statement.
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