Global technology vendor, Nokia Corporation (Nokia), has released its interim report for Q1 2025, reporting an 11% growth in network infrastructure on a constant currency basis. Nokia’s cloud and network services grew by 8%, while mobile networks increased by 2%.
The Q1 report saw a 3% year-over-year (YoY) net sales decline, reflective of a challenging year at Nokia Technologies and a one-time charge in mobile networks.
Nokia’s President and CEO, Justin Hotard, highlighted the completion of the Infinera acquisition as a key milestone, noting that it boosted Nokia’s optical networks unit by 15% with significant design wins. “We are on track to deliver our synergy targets, and I believe this acquisition has significant value creation potential for Nokia.”
Read: Nokia Reports Strong Q4 2024 Performance, 2025 Outlook
Cloud and Network Services
Cloud and network services grew by 8%, driven by 5G core adoption from major clients, such as AT&T, Boost Mobile, Ooredoo Qatar, and Telefónica. Nokia Technologies expanded its annual contracted net sales run-rate to EUR 1.4 billion through new deals.
Hotard emphasized, “I see great potential for Nokia, and my early focus is on capital allocation to ensure we both drive efficiency and invest sufficiently in the right growth segments for long-term value creation.”
I am impressed with our core technology base across our portfolio, including in RAN and core as well as in IP, optical, and fiber technologies.
He added, “It is clear that we play a critical role as a trusted partner operating mobile and fixed networks and have the potential to expand our presence in hyperscale, enterprise, and defense markets.”
Also Read: Nokia Completes World’s First 5G SA mmWave Spectrum-Sharing Trial
2025 Outlook
Looking ahead, Nokia expects strong net sales growth in network infrastructure, cloud, and network services, and stable net sales for mobile networks, along with approximately EUR 1.1 billion in operating profit from Nokia Technologies.
The company anticipates a EUR 20 to 30 million tariff-related disruption, impacting Q2’s operating profit. However, Nokia reaffirmed its confidence in achieving full-year (FY) targets by investing in future growth opportunities. The company is targeting a comparable operating profit of EUR 1.9 to 2.4 billion and free cash flow (FCF) of 50% to 80%.
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