On 19 November 2025, Nokia held a Capital Markets Day in New York. Under the slogan “The Next Chapter”, the top management of the Finnish network equipment supplier presented its plans and targets for the coming years. CEO Justin Hotard outlined artificial intelligence (AI) and cloud computing as key growth drivers. Following the multi-billion acquisition of US rival Infinera, the Scandinavian company had become the world’s second-largest provider of optical networks. The ongoing expansion of data centre capacity requires high-speed connections and switching equipment. Less than six months after the event in New York, Hotard had to revise the “next chapter”. In New York, he had assumed that Nokia’s addressable market would grow by an average of 5% per year between 2025 and 2028, reaching EUR 116 billion. He now assumes a compound annual growth rate (CAGR) of 8%.
According to the CEO, demand has “significantly accelerated” in recent months, particularly in the AI and cloud segment. He now expects this segment to grow at an average annual rate of 28% until 2028. Previously, Nokia had forecast a CAGR of 16%. “Across the entire supply chain, demand is increasing and lead times are extending, reflecting the scale of ongoing investments,” Hotard said at the end of April. The figures presented for the first quarter of 2026 are in line with this picture. The AI & Cloud segment increased revenues by almost half. At the same time, Nokia secured orders worth EUR 1 billion for these solutions. The Finns also made a significant leap in profitability: at EUR 281 million, comparable operating profit was 54% higher than in the same period of the previous year. Accordingly, the margin expanded by 200 basis points to 6.2%.
For the full year, the CEO now expects revenue growth of between 12% and 14% for the network infrastructure segment. The optical networks and IP networks divisions combined are expected to expand by up to 20%. “We are also increasing our investments in optical networks in order to fully capitalise on our opportunities in this fast-growing market,” Hotard said. At group level, he aims to land in the middle of the operating profit guidance range of EUR 2.0 to 2.5 billion in 2026. If this materialises, Nokia would increase profits by around 30%. The stock market reacted enthusiastically: following the latest earnings release, the former mobile phone giant’s shares reached a 16-year high
Even if the large cap cannot sustain its current momentum, attractive returns are possible with soft callable barrier reverse convertibles. Leonteq has launched two variants of this popular structure on Nokia. In CHF, the coupon amounts to 15.2% p.a. In the EUR-denominated version, investors can expect a quarterly payout equivalent to 17.2% p.a. The barrier is set at a low 59% of the initial level. As a new addition, Leonteq has also included the Finnish network specialist in its range of leverage products. The Zurich-based fintech has launched several products on Nokia shares, giving short-term traders the opportunity to bet both on a continuation of the rally and on falling prices.
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