Description

Nokia Corporation’s EUR 2.8 Billion AI Order Wave: Can Supply Keep Pace?

Nokia Corporation reported a 9% increase in net sales for the second quarter of 2026, driven primarily by strong performance in its network infrastructure segment. The company expanded its gross margin by 70 basis points to 46%, and operating margin also increased by 70 basis points to 9%. Growth was particularly notable in the optical and IP networks, where sales from AI and cloud customers more than doubled year-on-year. Mobile infrastructure sales grew 7%, with profitability remaining stable, supported largely by product mix. The AI and cloud segment was the fastest-growing customer category, with net sales doubling to EUR 446 million and order intake reaching EUR 2.8 billion. However, it was noted that approximately half of the orders received in the quarter are expected to convert to revenue within the next 12 months, highlighting the elongated order book and potential lumpiness in future sales.