Nokia raised its outlook for AI and Cloud as it revealed Q1 earnings for the fiscal year. CEO Justin Hotard stated that demand for the technology accelerated significantly since it laid out a strategy revamp in November 2025.
The vendor now expects the addressable market for AI and Cloud to register a CAGR of 27 per cent between 2025 and 2028, compared with 16 per cent it previously estimated.
“Across the supply chain, demand is accelerating and lead times are extending, reflecting the scale of investment underway”, Hotard said.
AI was the main story in Nokia’s numbers, with Hotard stating AI and Cloud demand contributed to a 2 per cent year-on-year rise in revenue to €4.5 billion. Net profit of €87 million compared with a €60 million loss in Q1 2025.
Net sales from AI and Cloud customers rose 49 per cent and now account for 8 per cent of group sales, with €1 billion-worth of orders booked in the quarter.
Network Infrastructure revenue increased 6 per cent to €1.8 billion, as strong optical and IP sales offset a decline in fixed infrastructure.
Optical and IP was also tipped as a key future revenue driver, with Nokia predicting sales would grow 12 per cent to 14 per cent across the year, compared with 6 per cent to 8 per cent it forecast in January.
Sales from its Mobile Infrastructure unit increased 3 per cent, boosted by technology standards and core software.
Hotard also provided an update on its AI-RAN progress, stating it is on track to launch customer trials later this year.
“With the addition of Orange, we now have ten customers publicly committed to working with us”, he added.
Source: Mobile World Live
Image Credit: Nokia
