Nokia tops estimates as network demand rebounds in AI infrastructure race

Nokia (NYSE:NOK) reported fourth-quarter earnings that cleared analyst hurdles, signaling a turning point for the Espoo, Finland-based equipment maker.

The company posted net income of $631 million, or 11 cents per share.

On an adjusted basis, earnings reached 21 cents per share (approximately €0.16), comfortably beating the 17-cent consensus estimate from Zacks Investment Research.

Revenue for the period hit $7.13 billion (€6.13 billion), up 3% on a constant currency basis, as demand for optical and IP networks surged.

The results were bolstered by a 7% jump in Network Infrastructure sales, led by a 17% spike in optical networks as hyperscalers and cloud providers ramp up capacity for generative AI workloads.

This performance helped mitigate a more cautious environment in the Mobile Networks segment, which has faced a "digestion period" following the rapid global rollout of 5G.

For the full year 2025, Nokia reported total revenue of $22.5 billion and a net profit of $736.4 million.

Looking ahead to 2026, CEO Justin Hotard—who succeeded Pekka Lundmark earlier in the year—unveiled a simplified operating model designed to capture growth in "AI-native" networks.

The company provided a bullish outlook for the coming year, targeting a comparable operating profit between €2 billion and €2.5 billion.

To reward shareholders, the board proposed a dividend authorization of €0.14 per share for the fiscal year 2025, reflecting confidence in the company’s stabilizing free cash flow.