Nokia Q1 2026 Results Highlight Optical Networks Growth and Margin Expansion
Nokia reported a steady start to 2026 with comparable net sales growth of 4% year on year on a constant currency basis, while reported growth was 2%. Network Infrastructure grew 6%, driven by Optical Networks which increased 20%, while AI and Cloud related sales rose 49%.
Mobile Infrastructure grew 3%, supported by Core Software growth of 5% and Technology Standards growth of 10%, while Radio Networks remained flat. Comparable gross margin improved by 320 basis points to 45.5%, and comparable operating margin rose to 6.2%.
Reported net sales were EUR 4.5 billion, operating profit was EUR 62 million, and EPS was EUR 0.02. Comparable operating profit reached EUR 281 million with EPS of EUR 0.05. Free cash flow stood at EUR 0.6 billion and net cash balance at EUR 3.8 billion.
The company saw strong demand from AI and Cloud customers, contributing 8% of total sales and generating EUR 1 billion in orders during the quarter. Nokia maintained its full year outlook, targeting EUR 2.0 to 2.5 billion in comparable operating profit.
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