KIANEWS Nokia Corporation Interim Report for Q3 2025
23. 10. 2025 Thursday / By: Robert Denes / Business / Exact time: BST / Print this page
(1) In Q3 2025, Nokia changed how it presents gains and losses from venture fund investments. The comparative financial information has been recast accordingly. Refer to the Financial statements and the Recast financial information sections in Nokia Corporation Interim Report for Q3 2025 for more information, including full comparative financial information for each quarter Q1-Q3'24 and Q1-Q2'25.
23 October 2025 at 08:00 EEST
(1) In Q3 2025, Nokia changed how it presents gains and losses from venture fund investments. The comparative financial information has been recast accordingly. Refer to the Financial statements and the Recast financial information sections in Nokia Corporation Interim Report for Q3 2025 for more information, including full comparative financial information for each quarter Q1-Q3'24 and Q1-Q2'25.
This is a summary of the Nokia Corporation Interim Report for Q3 2025 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Group's financial information as well as on Nokia's outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. Investors should not solely rely on summaries of Nokia's financial reports and should also review the complete reports with tables.
JUSTIN HOTARD, PRESIDENT AND CEO, ON Q3 2025 RESULTS
In the following quote, net sales comments and growth rates are referring to comparable net sales and are on a constant currency and portfolio basis. References to margins are related to Nokia's comparable reporting. We delivered a solid performance in Q3 with net sales growing 9% and all business groups growing. Network Infrastructure delivered 11% net sales growth. Optical Networks grew 19%, coming largely from AI & Cloud customers. Order intake trends in Optical Networks and IP Networks remained strong with book-to-bill well above 1. Our new 800G ZR/ZR+ pluggables for data center interconnect became generally available and have started shipping to a large US customer. We are opening a second Indium Phosphide semiconductor fabrication facility in San Jose before the end of next year to support the growth opportunity we see in our optical components business. In the quarter we also announced an important strategic partnership with Nscale which will see us become a preferred networking equipment vendor for their data center buildout. In Q3, AI and Cloud customers accounted for 6% of our net sales at the group level and 14% for Network Infrastructure. Cloud and Network Services delivered 13% net sales growth as operator investments in 5G Core remain strong. Our cloud-native 5G Core offering continues to gain traction, and we are gaining market share. In the first half of 2025 we took the #1 market share position in Voice Core (Dell ‘Oro excl. China). Mobile Networks delivered 4% growth and we continue to see the market stabilize. Commercially, we announced an agreement with VodafoneThree, re-entering as a major radio supplier in their network. Nokia Technologies signed several new deals in the quarter, while our annual net sales run-rate is approximately EUR 1.4 billion. At a group level, gross margin declined 150 basis points compared to the prior year. This was due to the expected weaker software contribution in Mobile Networks, balancing the higher-than-normal contribution in Q2, and product mix effects in Network Infrastructure. Operating margin was stable year-on-year, excluding a one-time benefit seen in the prior year related to a provision reversal. Following a strategic review, we have decided to scale down our passive venture fund investments. Therefore, we are also changing how we present these investments in our financials, they will now be within financial income and expenses instead of affecting operating profit. We may still make targeted minority investments, directly as Nokia, that can accelerate our strategy. Looking forward, we are on track to achieve our full year outlook. The change in presentation of venture fund investments leads to a technical increase of EUR 0.1 billion to our comparable operating profit outlook which is now EUR 1.7 to 2.2 billion. We are tracking towards the midpoint of the range. At our Capital Markets Day in New York on November 19th, we will share our strategy to unlock the full potential of our portfolio and the steps we are taking to focus the company to deliver growth and operating leverage. The AI supercycle is accelerating demand for providers of advanced and trusted connectivity. Nokia is uniquely positioned to be a leader in this market. Justin Hotard President and CEO