During the presentation of its Q1 earnings, Nokia emphasized that it has raised its outlook for AI and Cloud. CEO Justin Hotard stated that the demand for the technology has accelerated significantly since it laid out a strategy revamp in November 2025.
The vendor now expects the addressable market for AI and Cloud to register a CAGR of 27% between 2025 and 2028, compared with 16% it previously estimated. “Across the supply chain, demand is accelerating and lead times are extending, reflecting the scale of investment underway,” Hotard said.
AI was the main story in Nokia’s numbers, with Hotard stating AI and Cloud demand contributed to a 2% year-on-year rise in revenue to €4.5 billion. Net profit of €87 million compared with a €60 million loss in 1Q25.
Net sales from AI and Cloud customers rose 49% and now account for 8% of group sales, with €1 billion-worth of orders booked in the quarter. Network Infrastructure revenue increased 6% to €1.8 billion, as strong optical and IP sales offset a decline in fixed infrastructure.
Optical and IP were also tipped as a key future revenue driver, with Nokia predicting sales would grow 12% to 14% across the year, compared with 6% to 8% it forecast in January. Sales from its Mobile Infrastructure unit increased 3%, boosted by technology standards and core software.
Hotard also provided an update on its AI-RAN progress, stating it is on track to launch customer trials later this year. “With the addition of Orange, we now have ten customers publicly committed to working with us,” he added.
At a time when much of the business world still behaves as if it is enough to layer new technology on top of an existing model, futurist and business thinker Rik Vera argues that this is precisely the strategic mistake companies can no longer afford.
During the presentation of its Q1 earnings, Nokia emphasized that it has raised its outlook for AI and Cloud.
In the first quarter of 2026, Austria-based A1 group reported growth in all relevant business segments.
