Nokia reported a 12 percent Year-on-Year (YoY) increase in network infrastructure sales for the second quarter of its fiscal 2026, while net sales in AI and cloud grew a formidable 105 percent over the same period.. Optical Network group sales grew 20 percent YoY in the quarter, while its IP Networks segment sales grew 16 percent YoY.
Nokia’s Network Infrastructure group saw a gross margin of 42.7 percent over the quarter, with an operating margin of 8.1 percent.. – Giacomo Lee/SDxCentral. Within Nokia’s Mobile Infrastructure business segment, Core Software group net sales grew a modest one percent.
Radio Networks net sales rose seven percent, with a 15 percent increase in Technology Standards group net sales.. Overall net sales grew nine percent YoY for Nokia, helping operating profit jump 18 percent to $496.11 million.. Nokia also furthered its US optical manufacturing capacity with a definitive agreement to acquire NXP’s semiconductor fabrication campus in Chandler, Arizona.
Nokia will initially lease manufacturing capacity in a portion of the facility on the site starting early next year, before converting it to indium phosphide semiconductor production for optical components. The Finnish vendor will then acquire the full site, with the transaction expected to close in early 2029..
Nokia said the transaction would progress its in-house compound semiconductor manufacturing capabilities and bolster US-based indium phosphide semiconductor manufacturing capacity in the face of ongoing supply chain pressures.. Nokia and the AI supercycle. Nokia CEO Justin Hotard said the results showed execution and progress on “maximizing our opportunity in the AI supercycle.” This outlook was buoyed by that 105 percent YoY rise in AI/cloud sales.
As a point of comparison, telecom sales grew four percent YoY in the quarter.. But telecom remains Nokia’s bread and butter, pulling in $514m in profits for the vendor compared with the AI segment’s $446m in profits.. Nokia’s Mission Critical & Enterprise Defense division profits dropped three percent YoY to $448m..
The earnings also rang the bell on Nokia’s ailing Fixed Wireless Access CPE and Enterprise Campus Edge businesses, which were moved into a dedicated operating segment called Portfolio Businesses at the start of the year. The vendor claimed that if it had not treated the pair as discontinued operations in the quarter, net sales would have been $75.2m higher and comparable operating profit would have been $14.8m lower..
Nokia sold its Fixed Wireless Access CPE business to Inseego this year for $20m. In Nokia’s assessment, it is “highly probable” that it will reach an agreement to sell its Enterprise Campus Edge segment.. More in Investment / M&A / Financing.
13 May 2026. 24 Jun 2026. More in Telecoms & 5G.
24 Feb 2026. 18 Feb 2026. 27 Feb 2026
