Nokia Profit Dips Despite Double-Digit Growth in Revenue

Nokia reported a 54% drop in profits in the third quarter of 2025 to €80 million, despite a significant growth in sales. Total revenue grew 12% to €4.8 billion, led by 28% growth in network infrastructure sales and 19% growth in optical network.

Its mobile network business was flat at €1.8 billion, while cloud and network services increased 8% to €645 million. CEO Justin Hotard said its gross margin declined 150 basis points year-on-year, due to an expected weaker software contribution in mobile networks, balancing the higher-than-normal contribution in Q2, and product mix effects in network infrastructure.

However, he highlighted the positives in Q3 earnings, insisting it is on track to achieve its full-year outlook, with double-digit growth in network infrastructure sales. “We delivered a solid performance in Q3,” with all business groups growing, Hotard stated. Next month, he said the company will share its strategy to unlock the full potential of its portfolio and the steps it is taking to refocus the company to deliver growth.

He added that the AI supercycle is accelerating demand for providers of advanced connectivity, claiming Nokia is uniquely positioned to be a leader. Following a strategic review, Hotard noted that it decided to scale down its passive venture fund investments, resulting in an increase of €100 million to its operating profit outlook, which is now €1.7 billion to €2.2 billion.