Nokia’s latest financials saw the vendor report double-digit adjusted net sales growth of 12% year-on-year (YoY), with a profit drop for the third quarter of 54%.

The Q3 results are the second set of financials under new CEO Justin Hotard, and paint a more positive picture compared to last quarter’s flat results.

Comparable net sales grew 9% YoY on a constant currency and portfolio basis, with the Optical Networks segment growing 19% in the quarter, coming mainly from Nokia's AI & Cloud segment customers.

Nokia reported no change in its outlook for full-year 2025, but revised its comparable operating profit guidance to between $1.9 and $2.5 billion. This is down to a change in venture fund reporting for the firm impacting its operating profit.

Nokia’s network path

The European giant continues to reap benefits from its Infinera acquisition, reporting interest in its new 800G ZR/ZR+ pluggables from one large U.S. communication provider, with “strong book-to-bill” in its Optical Networks and IP Networks businesses.

But Optical Networks overall showed 6% organic growth, perhaps a surprise given hyperscaler interest in the technology as AI fuels network expansion. Nokia itself conceded it could have seen in excess of 10% growth, but was “hampered” by “modest supply chain constraints.”

Hotard repeated his point from last quarter that the company was behind the competition in terms of market share penetration, while pointing to the interest in Nokia’s 800G wares as a competitive advantage.

“We've had some traction in routing,” Hotard added. “I think there’s more work to do in that space. … But, traditionally, we haven't made this a priority.”

In the networking space, Nokia’s biggest deal was with Nscale, which plans to invest some $3 billion in Britain as part of the Stargate UK venture, with Nokia providing network capabilities.

In a recent interview with SDxCentral, Paul Alexander, VP and country GM for Nokia UK&I, said the Nscale deal proved Nokia was the vendor of choice in AI infrastructure.

“When we talk about networks, transport networks, optical, IP, fixed access, really it’s Nokia [and not Ericsson] from a sovereign Europe point of view. So I think that's one of the things that separates us,” Alexander claimed.

The software front

Going back to hyperscalers, Hotard reminded investors that a large number of cloud vendors are partners of Nokia's in its Mobile Networks division, which saw a modest 4% growth in the quarter.

“We've moved much more to a cloud-first strategy for core in terms of the tech stack, but also in terms of where we run those platforms,” Hotard explained. “And I think, over time, we're going to see some of those things move even into RAN [radio access network], and I think we need to be a partner there … I think there's a significant opportunity.”

Stuart Sullivan, Nokia’s distribution and partner sales manager for Europe, previously told SDxCental that the last quarter saw continued interest in Nokia's Digital Automation Cloud (DAC), an operational support system (OSS) suite integrated in a customer’s private wireless setup.

Sullivan also claimed private 5G was booming worldwide for Nokia. While Nokia’s earnings call wasn’t quite as ebullient, the vendor noted growth in its Cloud and Network Services units was driven by 5G Core.

On the radio front, Nokia said the recent VodafoneThree mega deal in the U.K. saw it return as a “major radio supplier,” coming off the launch of its new "home of radio" campus in Oulu, Finland.

That event saw Hotard call on EU officials to potentially remove what he described as “high-risk" Chinese vendors from the continent.

There was no such fighting talk on the earnings call, nor much mention of its competitor Ericsson.

When pressed on the RAN market, Hotard disagreed with recent Ericsson assertions that there had been strong changes in market pricing.

“I wouldn't say there's anything that we see that's abnormal at this point,” Hotard claimed. “As you know, the market regionally has very different dynamics. So, in terms of pricing dynamics or specific competitive situation, it very much depends on the individual opportunity. I think we feel pretty good about what we see in terms of the market.”

And while Ericsson’s recent financials painted a complex global picture, Nokia seems more cocksure with its global footprint.

The vendor saw strong performance in Asia-Pacific (APAC), mainly driven by fixed-wireless (FWA) access deployments in India. Nokia also partnered with Indian telecom service provider Microscan Infocommtech on an optical network solution during the quarter.

Other region wins included a railway communications network for Bangkok’s urban rail system, Rakuten Mobile’s 5G standalone network in Japan, and a kit out for an Empyrion data center in South Korea.

Vietnam grew strongly as a market, alongside Europe, the Middle East, and Africa (EMEA) due to Middle East and Africa growth. Americas net sales remained stable, with recent wins including Memphis Light, Gas, and Water, and a high-speed backbone network for Mexico’s MX Fiber.

All regions saw growth in the quarter, with the top three increases seen by India at 24%, the rest of APAC at 23%, and North America at 13%.