Investors Flock to Nokia as Earnings Report and Boosted Artificial Intelligence Projections Send Shares Soaring to Highest Level Since 2007

Table of Contents Nokia delivered first-quarter results that substantially exceeded Wall Street projections, triggering a sharp rally in the company’s shares. The telecommunications equipment provider from Finland reported comparable operating profit reaching €281 million, representing a 54% increase from the prior year and comfortably above the €250 million analyst consensus. Nokia beat Q1 profit estimates and backed full-year guidance after network infrastructure sales rose 12% on AI and cloud demand. $NOK booked €1 billion in AI and cloud orders and RAISED its 2026 network infrastructure growth outlook to 12% to 14%, from 6% to 8%. pic.twitter.com/H1l2F1xGdc — Wall St Engine (@wallstengine) April 23, 2026 The bottom line flipped to a net profit of €87 million compared to a €60 million deficit in the corresponding quarter last year. Operating margin expanded to 6.2% from 4.2% in the year-earlier period. Shares surged up to 9% during Thursday morning trading in Helsinki, marking the stock’s strongest performance since April 2010. Nokia Oyj, NOK Comparable net sales totaled €4.5 billion during the three-month period, aligning closely with market projections and representing a 4% year-over-year increase when adjusted for currency fluctuations. The AI and cloud segment emerged as the performance leader. Revenue from this division skyrocketed 49% and represented 8% of total group revenue. Fresh orders from AI and cloud clients reached approximately €1 billion throughout the quarter. Optical Networks, operating within the Network Infrastructure division, delivered exceptional results with 20% organic expansion. The overall Network Infrastructure segment posted 6% organic growth. Mobile Infrastructure advanced 3%. Nokia increased its total addressable market growth projection for AI and cloud operations to a 27% compound annual growth rate spanning 2025 through 2028. This marks a significant upgrade from the 16% rate communicated during a November investor presentation. The Network Infrastructure TAM growth outlook was upgraded to 12–14% from an earlier 6–8% estimate. Optical and IP network growth projections were revised upward to 18–20%, compared with the previous 10–12% forecast. CEO Justin Hotard attributed the changes to an AI “supercycle,” noting that demand was intensifying and driving heightened capital allocation toward optical and IP network infrastructure. The company maintained its full-year comparable operating profit outlook in the €2.0 billion to €2.5 billion range, noting performance was trending moderately above the range’s midpoint. However, the results weren’t uniformly positive. Nokia’s second-quarter operating profit forecast fell significantly short of analyst expectations. Management projected Q2 operating profit would represent 12–16% of annual operating profit, translating to a figure approximately 20% below consensus estimates at the midpoint. Free cash flow also deteriorated, swinging to negative €353 million from positive €629 million in the fourth quarter of 2025. Barclays, maintaining an “underweight” rating on Nokia with a €5.20 price target, characterized the quarter as “broadly neutral.” The investment bank highlighted near-term concern regarding the subdued Q2 profit outlook while recognizing Nokia’s expanding AI market presence. The firm noted that AI RAN trials were progressing as planned but observed “little to get excited about on the mobile side.” The Q2 revenue outlook did suggest potential upside versus consensus, with management forecasting 5–9% sequential revenue growth. Nokia’s optical division has functioned as a crucial growth catalyst following its purchase of U.S.-based Infinera, an acquisition that positioned the company among the world’s leading optical transport system manufacturers. The company verified that AI and cloud orders during the quarter approximated €1 billion.