Jakarta, INTI - Nokia, widely known as a smartphone manufacturer, reported its first-quarter 2026 financial results that exceeded market expectations. This was driven by the demand explosion in the artificial intelligence (AI) and cloud computing sectors.
The Finnish company recorded a 4 percent year-on-year increase in net sales to 4.50 billion euros (approximately Rp78 trillion). However, the real surprise lay in operating profit, which surged 54 percent, reaching 281 million euros.
This growth is rooted from Nokia's business transformation. Sales in the AI and Cloud sectors skyrocketed 49 percent, while the optical network segment grew 20 percent. Previously, Nokia's operating profit was predicted to be only around 250 million euros.
Nokia President and CEO Justin Hotard revealed that the AI and Cloud business now contributes 8 percent to the company's total sales. He said that the company’s performance, which exceeded expectations, is supported by strong market demand.
Nokia will Increase Investment Strategies
Looking ahead to the remainder of the year, Nokia appears very optimistic. The company projects network infrastructure growth of between 12 and 14 percent. The combination of optical and IP networks is expected to grow up to 20 percent.
Hotard added that Nokia will not slow down. Instead, the company will increase its investment in the optical network sector to seize opportunities in the rapidly growing market.
This positive sentiment was immediately met with enthusiasm on the stock exchange. Nokia's share price soared 10 percent to above 9 euros per share on the Helsinki Stock Exchange.
This achievement marks a new milestone for Nokia. This is the first time its share price has reached this level since 2010, signaling a return of investor confidence in the future of the technology giant.
Conclusion
Nokia reported first-quarter 2026 performance that exceeded expectations, driven by surging demand in the AI and cloud sectors. Sales rose 4% to €4.50 billion, while operating profit surged 54% to €281 million. The strong growth was primarily driven by the AI, cloud computing, and optical network market demands. Nokia is also optimistic about network infrastructure growth throughout the year and plans to increase investment in this sector.
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