Nokia Oyj (OMXHEX:NOKIA) posted stronger Q2 sales and profits, raised FY profit guidance and landed €2.8B of AI & cloud orders, but warns supply and chip constraints will delay AI deliveries to 2027–28 even as it boosts in‑house semiconductor capacity and shifts units amid restructuring.
Previous Week Recap
- Nokia Q2 2026 Revenue Growth: Nokia (NOKIA) Q2 2026: sales €4.82B (+8–9% YoY), adj EPS €0.07, comp. operating profit €434M (margin 9.0%). Network Infrastructure +12%; AI & Cloud orders €2.8B. Raised FY profit guide to €2.1–2.6B.
- Nokia To Acquire NXP Fab: Nokia agreed to acquire NXP’s Chandler semiconductor fab to expand in-house indium phosphide production, planning to lease capacity from early 2027 and complete the acquisition by early 2029.
- Nokia Discontinues FWA CPE: Nokia (NOKIA) reclassified FWA CPE and Enterprise Campus Edge as discontinued, cutting comparable sales by €66M and boosting operating profit by €13M; FWA CPE sale signed, Campus Edge likely to sell.
- Nokia Europe-Focused Restructuring: Nokia (NOKIA) plans extra Europe-focused restructuring; expects about €800M total charges, ~€200M this year and ~€350M tied to Chinese JV integration in 2026.
- BofA Raises Nokia Target: Bank of America raised Nokia (NOKIA) target to $18.50 and kept Buy after €2.8B AI orders. AI backlog limited by manufacturing; deliveries likely delayed to 2027–2028. AI revenue may double by 2027.
- Nokia Expands AI Infrastructure: Nokia (NOKIA) cites ongoing supply constraints and higher memory chip costs; company expands focus on data center and AI infrastructure, including partnerships tied to Nvidia.
This is an AI-generated summary and may contain inaccuracies. Please verify any important information with the original sources.