Nokia Beats Q1 Expectations with AI-Driven Growth

Finnish telecommunications equipment maker Nokia surpassed market expectations in its first-quarter financial results, as growth in artificial intelligence (AI) revived its sales. The company reported stronger-than-expected revenue performance, driven particularly by increased demand for data center and network infrastructure. Nokia's first-quarter net sales reached €5.3 billion, exceeding analyst estimates. The company noted that AI-focused investments boosted demand, especially in North American and European markets. Additionally, a recovery in equipment sales for 5G networks positively impacted the results. Nokia also improved operational profitability, reporting adjusted operating profit of €597 million, a 10% increase compared to the same period last year. Management anticipates that demand for AI and cloud computing infrastructure will continue to support growth in the coming period. Nokia CEO Pekka Lundmark stated, "The AI revolution is exponentially increasing the need for network infrastructure. We are capitalizing on this opportunity by strengthening our portfolio." The company maintained its 2024 outlook and expects a similar momentum to continue into the second quarter. This is not investment advice.