Nokia shares surge on AI and cloud-driven growth

Nokia's Q1 2026 profit jumped 54% to €281M, driven by strong AI and cloud demand. Optical Networks grew 20%. Shares surged 9%, hitting a 16-year high after upgraded forecasts and robust new orders.

Nokia delivered a strong first quarter in 2026, with comparable operating profit rising 54% year-on-year to €281 million—well above analyst expectations. The company returned to profitability, posting a net profit of €87 million after a €60 million loss the previous year. Growth was fueled by robust demand for AI and cloud infrastructure, with revenue from these segments jumping 49% and €1 billion in new orders secured. The Optical Networks division led the way, expanding 20% as cloud giants invested in high-speed fiber systems for AI data centers. Nokia raised its annual growth forecast for AI and cloud markets to 27% and upgraded its 2026 network infrastructure outlook to 12–14%. Operating margin improved to 6.2%, and gross margin reached 45.5%. Shares soared up to 9% in early trading, reaching their highest level since 2010 and marking a 16-year peak. However, risks remain if AI or data center spending slows.