Nokia beat revenue expectations in Q1 2026, and the rationale has nothing to do with telephones. The Finnish firm’s optical fiber enterprise has grow to be the quiet engine behind its strongest quarter in years.
Comparable working revenue jumped 54% to €281 million, properly above analyst estimates. Shares rose roughly 7% in Helsinki, reaching ranges not seen since 2010. The corporate’s inventory worth is up by a staggering 63% in 2026.
The Fiber Behind the AI Growth
The headlines say “AI revived Nokia,” however the earnings inform a extra particular story. Inside Nokia’s Community Infrastructure section, the Optical Networks unit grew 20% within the quarter.
This single enterprise line, which builds the high-speed fiber techniques connecting AI knowledge facilities, delivered way more progress than every other a part of the corporate.
The remainder of the portfolio tells a unique story. IP Networks grew 3%. Mounted Networks shrank 13%. The legacy cellular infrastructure enterprise, as soon as Nokia’s id, managed simply 3% progress.
What modified is who Nokia sells to. Cloud giants like Amazon, Google, and Microsoft are constructing huge AI coaching services, and people services want fiber optic cables to maneuver knowledge at scale.
Nokia booked €1 billion ($1.17B) in new orders from these hyperscaler clients in Q1 alone. Gross sales to AI and cloud consumers now account for 8% of the corporate’s complete income, up 49% from a yr in the past.
A Greater Wager on Optical
Nokia is leaning into the momentum. The corporate raised its 2026 progress forecast for Community Infrastructure to 12-14%, up from 6-8%.
It now expects the AI and cloud promote it serves to develop at 27% yearly by way of 2028, almost double its November estimate.
“We’re rising our progress assumption for Optical and IP Networks and we’re investing to seize accelerating demand from AI & Cloud clients,” acknowledged Justin Hotard, President and CEO.
The Infinera acquisition, accomplished in early 2025, gave Nokia a bigger footprint in coherent optical transport. That deal is now exhibiting up in wider margins and stronger order books.
Nokia’s comeback is actual. It simply has much less to do with AI hype and extra to do with the fiber optic cables that make AI attainable.
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