Nokia

Nokia reports an adjusted operating profit of EUR 605m for the third quarter, roughly one-third above expectations, and revenue up 10% to EUR 5.2bn. The company sees growth potential in its optics business of up to 30% by 2027 and names NVIDIA as a partner. CEO Justin Hotard highlights accelerated data-center investments, supporting the outlook for a stock rebound. » More on finanzen.net

Nokia expects that the savings program launched in 2025 will cost around €1.1 billion this year instead of €800 million. CEO Justin Hotard is cutting investments and shifting the focus more toward networking data centers to benefit from the AI investment boom. In the third quarter, revenue rose 10% to €5.15 billion and adjusted operating profit rose 35% to €605 million, but the market reacted negatively and the stock fell about 6%. » More on finanzen.net

Nokia will cut about 1,100 jobs in Europe, with Finland (253), Poland (241) and Romania (211) most affected. The reductions mainly hit the mobile business (547 jobs) as well as fixed network, IP and optics (401 jobs). At the same time, the Enterprise Campus Edge business with roughly 1,000 employees was sold to investor Aurelius; Nokia cites a cost-reduction target through the end of 2026. » More on golem.de

Nokia has risen about 120% over the past twelve months and is considered the most successful stock in the Euro Stoxx 50 after an equity stake and technology partnership with Nvidia for AI-driven network optimisation. The network business is benefiting from strong cloud and AI demand: revenue from relevant customers has doubled and the order backlog stands at €2.8 billion. Analysts expect substantially higher net profits in the coming years, while the stock is expensively valued with a P/E ratio of around 24. Risks remain the dependence on the investment cycle of large cloud providers and strong competition from Cisco, Arista, Ciena, Ericsson and Huawei; quarterly results follow on October 22. » More on handelsblatt.com

Nokia has risen about 120 percent in twelve months and, after the Nvidia investment and partnerships on AI-supported mobile and 6G technologies, is the best-performing stock in the Euro Stoxx 50. The company reported a doubling of revenues from cloud and AI customers, an order intake of €2.8 billion and rising analyst forecasts for net profits. However, the stock trades at an expected P/E of nearly 24, well above the ten-year average, leaving it vulnerable to setbacks; risks include dependence on cloud investments and strong competition from Cisco, Ericsson and Huawei. » More on handelsblatt.com