Finland-based network equipment maker Nokia beat market expectations as it on Thursday posted stronger sales during July-September and a smaller-than-expected decline in profit, reported Xinhua.
According to the company's statement, net sales in the third quarter (Q3) of 2025 rose to 4.8 billion euros from 4.3 billion euros a year earlier. Operating profit fell 10 percent to 435 million euros from 485 million euros in Q3 2024, but topped analyst forecasts.
"We're on track to achieve our full-year outlook," Chief Executive Officer Justin Hotard said, noting that growth in all business groups led to a solid performance in Q3.
The gross margin of Q3 declined to 9 percent from 11 percent year-on-year. Hotard said this reflected an expected weaker software contribution in Mobile Networks, balancing a higher-than-normal contribution in Q2, and product-mix effects in Network Infrastructure.
Regarding Nokia's strategy set to be published in November, Hotard voiced confidence, highlighting the company's advantages. "The artificial intelligence (AI) supercycle is accelerating demand for providers of advanced and trusted connectivity. Nokia is uniquely positioned to be a leader in this market," he noted.
Nokia also raised its full-year profit guidance to 1.7-2.2 billion euros, from 1.6-2.1 billion euros previously.
A consensus compiled by Finnish business daily Kauppalehti had forecast a 333.5-million-euro Q3 profit for Nokia. Following the results, analysts said the key question is how quickly the AI boom translates into orders and earnings.
Pekka Lahteenmaki, a columnist at Finnish business weekly Talouselama, said November would be a "moment of truth," when Nokia is expected to present convincing projections for monetizing AI.
Acknowledging uncertainties in the future, Hotard remained positive on AI development, saying that Nokia's AI outlook is "very positive."
Markets echoed the upbeat tone, with Nokia shares up more than 10 percent on Thursday on the Helsinki exchange.
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Source: www.dailyfinland.fi
