Monday, 17 February 2025
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Nokia’s Q4 Profit Surges 38% Amid Strong Telecom Demand

  • Revenue Growth: Sales rose 10% to €5.98 billion, surpassing estimates.
  • Network Infrastructure Boost: Demand recovery drove a 17% rise in segment sales.
  • AI Expansion: Nokia’s $2.3 billion Infinera acquisition positions it for data center growth.

Nokia’s strong Q4 performance signals a rebound in the telecom sector, with increased demand from North American and Indian operators. The company’s network infrastructure business saw a 17% rise in sales, highlighting a robust recovery.

Beyond telecom, Nokia is making strategic moves in AI and data centers. The $2.3 billion acquisition of Infinera will strengthen its foothold in optical networking, with the deal now set to close earlier than expected.

Nokia Eyes Growth in 2025 as Q4 Results Beat Expectations

Nokia’s Q4 results reflect a strong turnaround, with net profit soaring 38% and sales exceeding forecasts. North America, which historically leads market shifts, played a key role in driving demand for telecom equipment. Additionally, after a slowdown, Indian telecom operators have resumed investments, further boosting Nokia’s revenue.

The company’s network infrastructure division was the top performer, registering a 17% increase. This growth comes amid a broader rebound in telecom infrastructure spending, particularly among communication service providers. Nokia’s guidance for 2025 remains optimistic, with full-year profit projected between €1.9 billion and €2.4 billion.

To capitalize on AI-driven data expansion, Nokia is moving aggressively into the optical networking space. The Infinera acquisition, originally expected to close mid-year, is now set to be finalized by Q1. The move is seen as a key step in positioning Nokia to benefit from the growing demand for high-speed data transmission in cloud and AI applications.

With AI investment surging, projects like Stargate, backed by OpenAI, SoftBank, and Oracle, represent massive potential for telecom infrastructure providers. Nokia’s strategic positioning in data center connectivity could drive long-term growth beyond traditional telecom markets.

Nokia’s strong Q4 results, strategic acquisitions, and focus on AI-powered data infrastructure set a promising path for 2025 and beyond.

“Opportunities multiply as they are seized.” – Sun Tzu

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