Nokia booked €1.5 billion in AI and cloud orders in Q3 2026, up 118% year-over-year, as demand strengthened for optical transport and IP networking. AI and cloud sales reached €631 million, up 123% at constant currency. Group revenue totaled €5.154 billion, rising 10% as reported and 9% at constant currency.

Nokia’s investor presentation detailed the product ramp: 800G coherent-pluggable shipments increased 2.4× sequentially, with 800G ZR/ZR+ design wins across 29 customers. The company also reported two hyperscaler IP design wins, including a next-generation data center gateway, a major hyperscaler optical line-system win, and initial multi-rail customer deliveries.

Nokia maintained its €2.1–€2.6 billion full-year comparable operating profit outlook and expects to finish above the midpoint. Combined Optical and IP Networks growth is expected to reach 25–30% in 2027. However, quarterly free cash flow was negative €99 million, and reported operating profit fell to €196 million despite comparable operating profit rising 35% to €605 million.

“Growth is accelerating, operating leverage is becoming more visible,” said Justin Hotard, Nokia President and CEO.

Analysis

The customer mix shows where growth is coming from: telecom-provider sales were flat at constant currency, while AI and cloud represented 12% of group revenue. Nokia’s gateway, coherent-optics and line-system wins point to demand across both IP and optical infrastructure.

Capacity and cash conversion remain key execution measures. San Jose Fab 2 is scheduled for 24/7 operations by October-end. Nokia lowered its 2026 CapEx assumption to €750–€850 million, partly reflecting payment timing, while maintaining optical expansion plans. An additional €400 million working-capital investment will support supply and 2027 growth.