Overview
- Nokia will split into two businesses in 2026, creating a network infrastructure unit focused on AI and data centres and a mobile infrastructure unit for core telecoms.
- The company targets annual comparable operating profit of €2.7–€3.2 billion by 2028, up from €2 billion last year.
- Nokia plans to reduce group operating expenses to €150 million by 2028 from €350 million and will launch a defense incubation unit to deliver secure connectivity to Western countries.
- Shares fell as much as 6% after the announcement, with analysts cautioning that heavy AI investment carries uncertain returns.
- CEO Justin Hotard highlighted surging hyperscaler demand, noting that nine of the ten largest cloud providers use Nokia technology.