Nokia profit surges past estimates on network growth

[HELSINKI] Nokia’s adjusted profit for the third quarter beat estimates, thanks to growth in its network infrastructure and optical networks businesses.

The Finnish company reported 435 million euros (S$655.2 million) in adjusted operating profit for the quarter, the company said on Thursday (Oct 23). That compares to an average analyst estimate of 324 million euros in data compiled by Bloomberg.

Nokia had cut its full-year profit guidance in July, after impacts from the Trump administration’s tariffs and currency fluctuations. The company said it expects operating profits of 1.6 billion euros to 2.1 billion euros for 2025.

The kit maker and its Nordic competitor Ericsson have faced years of sluggish 5G kit sales as operators delay expensive network upgrades. While those sales are largely stabilising this year, Nokia is increasingly focused on expanding to other industries such as artificial intelligence and defence to grow its customer base beyond mobile phone operators. 

Chief executive officer Justin Hotard took over the company in April and will detail his strategy at a capital markets day on Nov 19. BLOOMBERG