Q3 2025 Nokia Oyj Earnings Call Transcript
Key Points
- Nokia Oyj (NOK) reported a 9% increase in net sales for Q3 2025, with growth across all business groups.
- The company experienced strong order intake, particularly in optical networks and IP networks, driven by AI and cloud customers.
- Nokia Oyj (NOK) is ahead of schedule with the integration of the Infinera acquisition, contributing positively to net sales and order intake growth.
- Cloud and Network Services saw a 13% sales growth with improved gross margins due to cost of delivery improvements and operating leverage.
- The company is on track to achieve its full-year outlook, expecting Q4 net sales to grow sequentially and slightly above historical seasonality.
- Operating margin declined year-on-year due to a one-time benefit from a loss provision reversal in the prior year.
- Gross margin for the group declined by 150 basis points year-on-year, largely due to product mix within Network Infrastructure and Mobile Networks.
- Mobile Networks gross margin was impacted by a lower mix of software revenue, leading to a 370 basis point decline.
- Nokia Oyj (NOK) is scaling down its passive venture fund investments, which previously had a negative impact on operating profit.
- The company faces challenges in the IP networks space, acknowledging that it is still a small player compared to market leaders.
Good morning, ladies and gentlemen. Welcome to Nokia's third quarter 2025 results call. I'm David Mulholland, Head of Nokia Investor Relations. And today with me is Justin Hotard, our President and CEO; along with Marco Wiren, our CFO.
Before we get started, a quick disclaimer. During this call, we will be making forward-looking statements regarding our future business and financial performance, and these statements are predictions that involve risks and uncertainties. Actual results may therefore differ materially from the results we currently expect. Factors that could cause such differences can be both external as well as internal operating factors. We have identified such risks in the Risk Factors section of our annual report on Form 20-F, which is available on our Investor Relations website.
Within today's presentation, references to growth rates will mostly be on a constant currency and portfolio basis, and other financial items will be based on our comparable reporting. Please note that our Q3 report and the presentation
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