Nokia Corp. (NYSE:NOK) on Thursday posted first-quarter results, highlighting strong momentum in optical networking and a sharp jump in sales tied to AI and cloud customers.
Nokia Q1 Results
The Finnish company reported net sales of $5.26 billion (EUR 4.5 billion), up 4% year over year, but missed Benzinga’s estimates of $5.40 billion. EPS came at $0.06, missing estimates by 3% but increasing 67% year-on-year.
The company’s Network Infrastructure segment grew 6% year over year, driven by a 20% increase in Optical Networks sales. Mobile Infrastructure sales grew 3% year over year with strength in Core Software (up 5%) and Technology Standards (up 10%). Sales growth at Radio Networks remained flat.
Justin Hotard, Nokia’s president and CEO, said, “We are increasing our growth assumption for Optical and IP Networks and we are investing to capture accelerating demand from AI & Cloud customers.”
Nokia’s AI Surge: A Game Changer?
Hotard tied the quarter’s performance to demand from AI and cloud buyers and said the company is leaning further into this market. AI & Cloud sales jumped 49% year over year in the quarter and now account for 8% of group sales. Nokia booked $1.17 billion (EUR 1 billion) in orders from those customers during the quarter.
Nokia raised its view for the AI and cloud …
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