Nokia reported on its performance in the first quarter of 2025: the Finnish telecom equipment manufacturer faced a deterioration in its financial performance. Revenue for the three-month period amounted to €4.39 billion, down 1% compared to the result for the first quarter of 2024, when it received €4.44 billion. In constant currency, the decline was 3%.
Nokia suffered an operating loss of €48 million. For comparison: a year earlier, the company showed an operating profit of €405 million. At the same time, net losses were at the level of €60 million against €438 million net profit at the end of the first quarter of 2024.
In the Network Infrastructure division, quarterly revenues amounted to €1.72 billion, up 20% (+11% in constant currency) compared to the previous year’s result of €1.44 billion. In the Fixed Networks segment, revenues increased by 9% year-on-year, in IP Networks by 7%, and in Optical Networks by 15%.
Image source: Nokia
In the Mobile Networks group, revenue increased by 3% year-on-year, from €1.68 billion in Q1 2024 to €1.73 billion in Q1 2025. Cloud and Network Services brought in €567 million, up 4% year-on-year (€546 million in 2024). Nokia Technologies, a division that develops consumer products and licenses technology, saw sales fall by 51%, from €757 million to €369 million.
Nokia names the completion of the acquisition of Infinera as the most important event of the first quarter: this will allow it to scale its optical networking business and accelerate growth in the data center segment. In particular, Nokia is strengthening its relationships with hyperscalers. The integration of Infinera into the operational processes of the Finnish company has begun. In the field of mobile communications, Nokia extended the agreement with the American operator T-Mobile US concerning 5G networks. Cloud and network services are showing positive dynamics, including thanks to cooperation with AT&T, Boost Mobile, Ooredoo Qatar and Telefónica.
Geographically, the EMEA region (Europe, Middle East and Africa) accounted for the largest share of Nokia’s revenue, with €1.84 billion, down 20% from last year’s €2.29 billion. In the US, sales increased year-on-year by 23%, from €1.20 billion to €1.48 billion. The Asia-Pacific region saw a 12% increase, from €947 million to €1.06 billion.
Nokia is warning of potential short-term challenges from new US tariffs, which could cut its operating profit by €20-30 million in the second quarter of 2025. At the same time, Nokia points out that its business could be impacted by the rapidly changing global trade landscape. Last year, the company announced it was exiting its TD Tech joint venture with Huawei due to tensions between the US and China. Nokia also has a small manufacturing operation in the US and is developing its business in India.
Overall, Nokia is looking to capitalize on the rapid advancement of AI, which is accompanied by the expansion of data center infrastructure. For example, last year it entered into an agreement to equip Microsoft Azure data centers with routers and switches. Together with Kyndryl, Nokia aims to provide advanced networking solutions and data center services to the global market. In 2025, Nokia expects significant net sales growth in network infrastructure, cloud and network services, while sales in the mobile network sector are forecast to be “flat.”