New Nokia CEO Hints at Strategy Shift

New Nokia CEO Justin Hotard has given signs of an upcoming strategy shift. It will focus on the critical role that connectivity will play in the AI supercycle soon.

The Finnish vendor released its full Q2 earnings a day after issuing preliminary numbers, which revealed that it had lowered its full-year operating profit outlook. The company said it would be impacted by US tariffs and the weakness of the US dollar. In 2Q25, revenue was up 2% YoY to €4.6 billion, with a 25% revenue increase from Network Infrastructure and a 10% uptick in Cloud and Network Services offset by a weak Mobile Networks performance. Revenue from Mobile Networks dipped 13% to €1.7 billion, due to lower activity in India and the fact that the unit benefited from accelerated revenue recognition the year before. Total profit for the period hit €96 million, up from a loss of €142 million.

Hotard said he had spent his first quarter as CEO engaging with stakeholders, and the standout message was around connectivity for AI, not only for CSPs and hyperscalers but also for new areas like defense and national security. “With our portfolio in mobile and fibre access, data centre and transport networks, Nokia is uniquely positioned to be a leader in this market transition,” he said. He added that the company had a great opportunity to drive a unified vision, and the company would reveal more on this strategy at its Capital Markets Day on 19 November.