Nokia Q2 Optical Sales Jump 20% as AI Revenue Doubles
Nokia reports Q2 optical network sales up 20% and AI-related revenue up 105%, with earnings scheduled for October 2026.
Key points
- Nokia Q2 Optical Networks sales rose 20% to €868 million, while IP Networks grew 16%.
- Revenue from AI and cloud customers increased 105% year-over-year, signaling strong demand for infrastructure.
- Rosenblatt initiated coverage with a Buy rating, joining JPMorgan and Argus in upgrading their views.
Nokia Oyj reported a 12% year-over-year increase in Q2 network infrastructure sales, driven by a 20% surge in Optical Networks revenue to €868 million. The company also recorded a 16% rise in IP Networks sales, highlighting broad-based growth across its core infrastructure segments.
Sales to artificial intelligence and cloud customers more than doubled, climbing 105% year-over-year. This sharp increase indicates that Nokia is successfully capturing demand for high-capacity connectivity required by data centers and AI workloads, a key driver for its current earnings momentum.
Analysts Initiate Coverage With Positive Ratings
TradingView noted that Rosenblatt initiated coverage of Nokia with a Buy rating and a €15 price target. The firm identified the company as a primary beneficiary of AI-focused optical networking infrastructure. JPMorgan and Argus also recently upgraded their stances, reflecting a consensus shift toward positive sentiment.
Nokia has set its next earnings release for October 22, 2026. Investors are watching for confirmation that the current sales trajectory in optical and IP networks will continue, as the company prepares to present detailed financial results for the upcoming period.
Strategic Trials Expand In AI-RAN Space
The telecommunications firm is conducting AI-RAN trials with major carriers including NTT DOCOMO, T-Mobile, and SoftBank. These partnerships aim to transition experimental technology into commercial deployments, positioning Nokia to capture new revenue streams in next-generation radio access networks.
Defense And Security Contracts Secure New Markets
Nokia agreed to provide secure communications for UK defense operations through a deal with C3IA. The contract covers private 4G and 5G networks, command and control systems, and edge computing across land, air, sea, and cyber domains.
Additionally, Nokia deployed its AI-driven Deepfield Defender solution at the ESpanix exchange. This system detects and mitigates DDoS attacks in seconds, serving over 200 national and international networks. These moves diversify Nokia’s customer base beyond traditional consumer telecom operators.
