Finnish telecoms giant Nokia reported stronger second-quarter sales driven by rising demand for its AI and cloud services, but earnings took a hit due to heavy restructuring costs.
The company posted a profit of 5 million euros for the April–June period, a sharp drop from 96 million euros recorded in the same period last year. Nokia linked the decline to ongoing restructuring expenses, which are expected to reach 800 million euros for the full year.
Despite the profit slump, revenue showed solid growth, rising by eight percent to 4.8 billion euros. Underlying operating profit, which excludes one-off costs, also climbed by 18 percent to 434 million euros.
CEO Pekka Lundmark highlighted strong momentum in AI and cloud business segments, revealing that order intake in the quarter reached 2.8 billion euros, with sales more than doubling compared to last year. He added that about half of these orders are expected to convert into revenue within the next 12 months.
The company said it is entering the second half of the year with positive momentum, as it continues to position itself to benefit from growing global demand for AI-driven infrastructure and cloud solutions.
Source: Channels News
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