Nokia Reports Revenue Gain and a Huge Profit Dip

In the second quarter of 2026, Nokia reported a rise in sales and a huge drop in profit. The Finnish vendor booked a net profit of €5 million, down 95%, on net sales which were up 8% to €4.8 billion.

Its profit figures were hit by €390 million in charges taken in the quarter to fund accelerated restructuring efforts and other one-off costs. Nokia noted that with these factors stripped out, it would have booked a 64% increase in its bottom line. The company expects to spend a total of €800 million across 2026 on restructuring, with some of the changes having been previously flagged.

Around €250 million relates to the concluding part of a program commenced in 2023; €350 million is integration charges to simplify its business in China after taking full ownership of a JV there; and the remaining €200 million is going on additional restructuring actions, primarily in Europe. On the latter, the vendor stated that the actions were a further step in simplifying the operating model and allocating resources towards growth opportunities.

Nokia flagged early progress in a strategic shift focused on capitalizing on AI-related opportunities in its Q2 results, expressing confidence in securing a buyer for its Enterprise Campus Edge business and unveiling a deal to expand US manufacturing. Nokia CEO Justin Hotard said he is encouraged by the execution and progress they have made in a short period of time since the plan was announced. He noted that order intake from its AI and cloud division more than doubled year-on-year to €2.8 billion.