Nokia's Quarterly Results Beat Expectations

Nokia's business performance surpassed expectations in the second quarter, with revenue climbing 9% to 4.8 billion euros and comparable operating profit increasing 18% to 434 million euros. While revenue met market forecasts, the operating profit exceeded predictions, as analysts had anticipated it to be 376 million euros.

The company secured orders worth 2.8 billion euros from its artificial intelligence and cloud service clients, doubling sales compared to the previous year. CEO Justin Hotard expressed satisfaction with the strategy's effectiveness, stating, "Our second quarter shows that the strategy we published at the end of last year is producing results. Our strategy fully leverages the growth opportunities created by artificial intelligence, and I am pleased with the results we have achieved in a short time."

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Our second quarter shows that the strategy we published at the end of last year is producing results. Our strategy fully leverages the growth opportunities created by artificial intelligence, and I am pleased with the results we have achieved in a short time.

Looking ahead, Nokia projects revenue growth of 3-7% for the current quarter and expects comparable operating profit to remain similar to the second quarter's figures. The company anticipates its full-year comparable operating profit to be slightly above the midpoint of its guidance, ranging between 2.1 and 2.6 billion euros.

Furthermore, Nokia is intensifying its cost reduction efforts. Initially announcing a savings program in October 2023 with a target of 800-1,200 million euros in savings by the end of 2026, the company now aims to achieve the upper end of this range.

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Our strong performance in the first half of the year creates a good starting point for the remainder of the year, and we still expect our full-year comparable operating profit to be slightly above the midpoint of our guidance.