Strong Financial Performance#
Nokia Oyj has announced a return to profitability in the first quarter of the year, reporting a net profit of 87 million euros. This marks a significant turnaround from a loss of 60 million euros in the same period last year. The company attributes this positive shift to robust demand for its optical networking and AI-driven infrastructure.
Sales Growth#
The company saw a 4% increase in comparable net sales on a constant currency basis, reaching approximately 4.5 billion euros. The growth was primarily driven by the Network Infrastructure segment, which experienced a 6% revenue increase, largely due to a remarkable 20% rise in Optical Networks sales.
Operating Profit and Margins#
Nokia's comparable operating profit surged by 54% to 281 million euros, with the operating margin improving to 6.2%, up from 4.2% a year earlier. This improvement indicates that the company is not only increasing its sales but also managing its costs effectively to enhance profitability.
AI and Cloud Demand#
Demand from customers in the AI and cloud sectors remains strong, with sales from this segment skyrocketing by 49%, contributing about 8% to the company's total revenue. During the quarter, Nokia secured around 1 billion euros in orders from these customers, highlighting the growing importance of AI technologies in driving business.
Outlook#
Nokia has maintained its full-year outlook, expecting a comparable operating profit between 2.0 billion and 2.5 billion euros. Chief Executive Justin Hotard noted that the demand associated with the AI "supercycle" is accelerating, leading to increased investments in optical and IP networks.