Nokia Q3 Profit Beats Estimates on AI Infrastructure Demand

Nokia Oyj reported a third-quarter adjusted operating profit of €605 million, significantly exceeding the average analyst estimate of €454 million. The company attributed the growth to surging demand for artificial intelligence infrastructure and the delivery of a backlog of data center networking equipment.

Chief Executive Officer Justin Hotard is pivoting the company toward data centers to offset subdued demand from traditional telecommunications customers following a slow 5G network buildout. As part of this strategic shift, Nokia is partnering with Nvidia Corp. to integrate advanced chips into mobile-network equipment.

Despite industry-wide challenges including rising component prices and constrained memory chip supplies, the company expects its restructuring and AI-focused strategy to support double-digit operating profit growth in the coming years.