Nokia Corporation Q2 2025 Earnings Recap

Nokia's Q2 2025 results showed mixed performance with growth in Network Infrastructure and Cloud Services offset by a decline in Mobile Networks, largely due to last year's revenue acceleration and unfavorable currency impact.

Key Takeaways

• Network Infrastructure and Cloud Services reported strong growth; however, Mobile Networks faced a decline due to accelerated revenue recognition from last year.
• Currency fluctuations negatively impacted profitability, with a EUR 50 million noncash loss from venture funds primarily due to a weaker U.S. dollar.
• The acquisition of Infinera is showing positive results with strong demand in Optical Networks despite supply constraints, supporting a favorable book-to-bill ratio above 1.
• Full-year outlook revised down to EUR 1.6 billion - EUR 2.1 billion primarily due to significant currency headwinds and customer order fulfillment tariffs.
• Continued investments in AI infrastructure and strategic partnerships position Nokia well for future growth opportunities, particularly with hyperscalers.