Nokia’s Fiber Optic Bet Is Paying Off as AI Hunger Lifts Earnings
Nokia beat revenue expectations in Q1 2026, and the rationale has nothing to do with telephones. The Finnish firm’s optical fiber enterprise has develop into the quiet engine behind its strongest quarter in years.
Comparable working revenue jumped 54% to €281 million, properly above analyst estimates. Shares rose roughly 7% in Helsinki, reaching ranges not seen since 2010. The firm’s inventory value is up by a staggering 63% in 2026.
The Fiber Behind the AI Boom
The headlines say “AI revived Nokia,” however the earnings tell a more specific story. Inside Nokia’s Network Infrastructure phase, the Optical Networks unit grew 20% within the quarter.
This single enterprise line, which builds the high-speed fiber programs connecting AI data centers, delivered much more development than every other a part of the corporate.
The remainder of the portfolio tells a unique story. IP Networks grew 3%. Fixed Networks shrank 13%. The legacy mobile infrastructure business, as soon as Nokia’s id, managed simply 3% development.
What modified is who Nokia sells to. Cloud giants like Amazon, Google, and Microsoft are constructing huge AI coaching amenities, and people amenities want fiber optic cables to move data at scale.
Nokia booked €1 billion ($1.17B) in new orders from these hyperscaler clients in Q1 alone. Sales to AI and cloud consumers now account for 8% of the corporate’s complete income, up 49% from a yr in the past.
A Bigger Bet on Optical
Nokia is leaning into the momentum. The firm raised its 2026 development forecast for Network Infrastructure to 12-14%, up from 6-8%.
It now expects the AI and cloud promote it serves to develop at 27% yearly by means of 2028, practically double its November estimate.
“We are rising our development assumption for Optical and IP Networks and we’re investing to seize accelerating demand from AI & Cloud clients,” stated Justin Hotard, President and CEO.
The Infinera acquisition, accomplished in early 2025, gave Nokia a bigger footprint in coherent optical transport. That deal is now exhibiting up in wider margins and stronger order books.
Nokia’s comeback is actual. It simply has much less to do with AI hype and extra to do with the fiber optic cables that make AI potential.
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