Item 1 of 3 A screen displays the company logo for Nokia Corporation on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 24, 2023. REUTERS\/Brendan McDermid<\/p>\n
[1\/3]<\/b>A screen displays the company logo for Nokia Corporation on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 24, 2023. REUTERS\/Brendan McDermid Purchase Licensing Rights, opens new tab<\/a><\/p>\n Oct 23 (Reuters) – Nokia (NOKIA.HE), opens new tab<\/a> reported third-quarter profit which was ahead of market expectations on Thursday, driven by strong optical and cloud demand, including AI-focused data centre sales following its Infinera acquisition<\/a>.<\/p>\n The company’s shares were up 10.6% to 5.2 euros by 0717GMT, their highest in over three years, adding 3 billion euros to the company’s 30-billion-euro market value.<\/p>\n Sign up here.<\/a><\/p>\n Comparable operating profit in the quarter through September reached 435 million euros ($507 million). Analysts polled by LSEG expected the same metric to reach 342 million euros.<\/p>\n U.S. tariffs, a market slowdown and a weaker dollar had weighed on Nokia’s business this year, prompting it to issue a profit warning<\/a> in July.The company had lost ground in the North American telecoms market as U.S. carrier AT&T (T.N), opens new tab<\/a> phases out Nokia\u2019s 5G contract in favour of Nordic rival Ericsson (ERICb.ST), opens new tab<\/a>, which won<\/a> a $14 billion deal in 2023.<\/p>\n However, quarterly group net sales rose 12% to 4.83 billion euros, above the 4.6 billion forecast, helped by strong growth in Optical Networks and cloud services.<\/p>\n The Finnish telecom kit maker is overperforming its Swedish rival Ericsson, underscoring contrasting investor sentiment toward the two Nordic telecom equipment makers this year.<\/p>\n Nokia said artificial intelligence and cloud customers accounted for 6% of group net sales and 14% of network infrastructure sales, with optical networks up 19% on a constant currency basis.<\/p>\n Mobile networks remain Nokia\u2019s core business, but the company has been investing in AI, including its recent acquisition of U.S. optical networking firm Infinera.<\/p>\n “AI and data center demand continues to be robust. In fact, it continues to accelerate from our perspective,” chief executive Justin Hotard said in a call with reporters.<\/p>\n The Finnish company expects annual operating profit between 1.7 billion and 2.2 billion euros, a slight upgrade to the previous range of up to 2.1 billion. It had previously said the second half of 2025 would be stronger than the first.<\/p>\n The slight revision is linked to a change in how it reports venture fund results after Nokia said it will scale down its passive investments.<\/p>\n ($1 = 0.8575 euros)<\/p>\n Reporting by Gianluca Lo Nostro; Editing by Matt Scuffham and Milla Nissi-Prussak<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n Purchase Licensing Rights<\/a><\/a><\/p>\n Gianluca is a markets reporter based in Gdansk, where he covers equities and companies in France and the Benelux countries, with a keen focus on media, telecoms and fintech. Previously, he worked as a journalist in Italy, covering various beats ranging from international business and finance.<\/p>\n","protected":false},"excerpt":{"rendered":"Item 1 of 3 A screen displays the company logo for Nokia Corporation on the floor of the…\n","protected":false},"author":2,"featured_media":140107,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[261],"tags":[291,82519,289,290,82499,36586,82500,82995,82996,82543,82538,82545,82546,82535,82541,82550,82553,82536,82530,82528,82531,82529,82555,82547,82539,82557,82537,82540,82554,82552,82551,18,55396,82520,82522,83001,32356,82997,19,17,82565,82524,83000,82510,83002,82998,83003,82994,83004,753,82,82999,83005,30150,82534,82533,107,82518],"class_list":{"0":"post-140106","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-amers","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-bact","13":"tag-biz","14":"tag-cmpny","15":"tag-coms","16":"tag-coms1","17":"tag-destabn","18":"tag-destabx","19":"tag-destafa","20":"tag-destbnx","21":"tag-destcsa","22":"tag-deste","23":"tag-destfun","24":"tag-destgns","25":"tag-destlby","26":"tag-destocabsm","27":"tag-destoukbsm","28":"tag-destousbsm","29":"tag-destoustcm","30":"tag-destpco","31":"tag-destpsc","32":"tag-destrast","33":"tag-destrbn","34":"tag-destreulb","35":"tag-destrnp","36":"tag-destrws","37":"tag-destrwsa","38":"tag-destucdptest","39":"tag-eire","40":"tag-emea","41":"tag-europ","42":"tag-ezc","43":"tag-fi","44":"tag-fin","45":"tag-gdy1","46":"tag-ie","47":"tag-ireland","48":"tag-mtpix","49":"tag-namer","50":"tag-nord","51":"tag-publ","52":"tag-pxp","53":"tag-res","54":"tag-resf","55":"tag-rulesresults","56":"tag-tcom","57":"tag-tech","58":"tag-technology","59":"tag-teeq","60":"tag-tel","61":"tag-tmt","62":"tag-topcmb","63":"tag-topnws","64":"tag-us","65":"tag-weu"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/140106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=140106"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/140106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/140107"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=140106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=140106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=140106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n