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Nokia Is Riding the Optical Upgrade Cycle—From 400G Today to Terabit Networks Tomorrow!

Nokia Corporation released its financial results for the fourth quarter and full year 2025, showcasing a year of consolidation and strategic repositioning to enhance long-term value creation. The company reported fourth-quarter net sales of EUR 6.1 billion, marking a 3% growth, with an operating profit reaching EUR 1 billion and free cash flow of EUR 0.2 billion. For the entire year, Nokia’s net sales recorded were EUR 19.9 billion, accompanied by an operating profit of EUR 2 billion, aligning closely with the company’s guidance. Free cash flow conversion was 72%, aligning with their expectations. Network Infrastructure was a primary growth driver, with net sales increasing by 7%, fueled by a notable 17% growth in optical networks. Strong demand was particularly prevalent among AI and cloud customers, aggregating EUR 2.4 billion in orders throughout the year from this segment.