Nokia's third-quarter profit beats expectations amid booming AI sales

HELSINKI, Oct 22 (Reuters) - Finnish telecom equipment maker Nokia reported a bigger than expected rise in quarterly earnings on Thursday and maintained its full-year financial outlook.

Comparable operating profit rose to 605 million euros ($680.20 million) in the third quarter of 2026 from a year-ago 448 million euros, above the average estimate of 453 million euros in a company-provided poll.

• Comparable net sales rose 10% to 5.15 billion euros in the quarter, versus a company-provided consensus of 5.05 billion euros

• Demand from AI and cloud customers has become an increasingly important growth driver for Nokia

• Group net sales to AI and cloud customers grew by 123% year-on-year, while the order intake to those customer groups rose by 118% to 1.5 billion euros

• "We expect our combined Optical and IP Networks businesses to grow between 25% and 30% in 2027," CEO Justin Hotard said in a statement

• "Overall, growth is accelerating, operating leverage is becoming more visible and I'm confident in the long-term shareholder value Team Nokia is creating," Hotard said

• Nokia's share price is up 48% year-to-date

($1 = 0.8894 euros)

(Reporting by Essi Lehto, editing by Terje Solsvik)