Nokia Oyj's (NOK) stock jumped more than 6% overnight in New York trading after the Finland-based telecom company posted fiscal second-quarter (Q2) results on Thursday. The gains followed Q2 revenue rising 8% year-on-year to €4.82 billion and earnings of €0.07 per share, both matching analyst estimates. The growth was powered by artificial intelligence and cloud demand, with AI and cloud customer sales more than doubling year over year. CEO Justin Hotard attributed the performance to Nokia's focus on maximizing opportunities in the AI supercycle. U.S.-listed Nokia Stocks are now headed for their best session since July 9 if gains hold throughout Thursday, signaling robust momentum in next-generation connectivity markets.
Nokia Reports 8% Revenue Growth in Q2 Driven by AI and Cloud Demand
Nokia's Q2 sales increased 8% year-on-year, reaching €4.815 billion with €0.07 earnings per share, both in line with analysts' consensus estimates according to Fiscal AI data. President and CEO Justin Hotard said, "Since we set out our plan late last year, Team Nokia has focused on maximizing our opportunity in the AI supercycle. I am encouraged by the execution and progress we have made in a short period of time."
The company's Network Infrastructure unit delivered the strongest momentum, rising 12% year-on-year, helped by higher demand for optical and IP networking products. Nokia recorded €2.8 billion in new orders during the quarter, with AI and cloud customer sales more than doubling year over year. Hotard added, "We expect around half of these orders to convert to revenue over the next twelve months. Demand remains strong, while supply continues to be the main industry constraint, prompting our customers to place longer-term orders."
Nokia's comparable gross margin expanded to 46%, up 70 basis points year-on-year. Operating profit rose 18% to €434 million, lifting the operating margin to 9%. The company now expects 2026 operating profit between €2.1 billion and €2.6 billion, compared with the previous range of €2.0 billion to €2.5 billion.
Nokia Launches AI-RAN Platform to Enhance 5G Network Performance
CEO Justin Hotard highlighted Nokia's recently launched AI-RAN platform, designed to improve 5G network performance. He said the platform can more than double spectrum efficiency by 2028 and provide a software upgrade path to future 6G networks.
The AI-RAN technology combines Nokia's AI-native RAN software with Nvidia's accelerated computing technology to improve wireless network performance. The platform has already demonstrated more than 20% improvements in spectral efficiency during testing.
Retail Traders Turn Bullish on Nokia Stocks Amid AI Growth
On Stocktwits, retail sentiment around Nokia stock improved to 'bullish' from 'neutral' territory the previous day, with a 34% increase in message volume over the last 24 hours.
One user said, "this is biggest AI play right now with such low multiple ...lot of revenue and solid execution ...." Another user commented, "The bears can try to take it down on net cash but the market will ignore it. They want to see AI growth! Exits Q2 with €2.78B in net cash and €5.18B in cash & investments. Balance sheet remains exceptionally strong despite restructuring and continued AI investment."
NOK stock has surged over 58% year-to-date.
FAQ
What were Nokia's Q2 financial results?
Nokia reported Q2 revenue of €4.82 billion, an 8% increase year-on-year, with earnings of €0.07 per share, both matching analyst estimates.
Why did Nokia Stocks jump 6% overnight?
Nokia Stocks rose after the company posted strong Q2 results powered by AI and cloud demand, with AI and cloud customer sales more than doubling year over year and Network Infrastructure sales increasing 12% year-on-year.
What is Nokia's AI-RAN platform?
Nokia's AI-RAN platform combines AI-native RAN software with Nvidia's accelerated computing technology to improve 5G network performance, demonstrating more than 20% improvements in spectral efficiency during testing.
