Nokia reported stable performance for Q2 2025, though affected by currency fluctuations and tariffs. Comparable net sales fell 1% year-on-year on a constant currency and portfolio basis. Mobile Networks dropped 13% due to strong one-time gains in the previous year. Network Infrastructure rose 8%, Cloud and Network Services grew 14% and Nokia Technologies saw a 3% increase.
Gross margin remained steady at 44.7%. Operating margin declined to 6.6%, mainly due to a EUR 50 million negative impact from venture fund revaluations, including a EUR 60 million currency loss. Tariffs also weighed on results. EPS for the quarter was EUR 0.04 and free cash flow came in at EUR 0.1 billion. Nokia’s cash balance stood at EUR 2.9 billion.
Due to external factors like a weaker US dollar and tariffs, Nokia lowered its full-year profit forecast to between EUR 1.6 and 2.1 billion, down from EUR 1.9 to 2.4 billion. CEO Justin Hotard said connectivity is becoming vital in the AI era, and highlighted strong momentum in Optical Networks and Cloud services. A better second half is expected especially in Q4 with continued growth in infrastructure and services despite ongoing macro challenges.
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