Nokia published Q2 2025 results, strategy shift hinted
On July 24, Nokia released its Q2 and H1 2025 financial results. The company saw slight revenue growth but a significant drop in profit due to market and currency pressure. New CEO Justin Hotard also hinted at a potential strategic shift.
Revenue reached €4.55 billion (+2 % YoY, –1 % in constant currency), with a gross margin of 44.7 % and operating margin of 6.6 %. Net income fell by 28 % to €236 million, with EPS at €0.04.
The Network Infrastructure segment grew ~25 % to €1.9 billion, while Mobile Networks dropped 13 % due to weaker demand in India and no one-off revenues from major contracts. Cloud and Network Services grew ~10 %.
Currency issues and new U.S. tariffs could cost Nokia around €295 million in 2025, prompting a lowered profit forecast.
CEO Hotard, who joined from Intel in April, highlighted Nokia’s opportunity in the coming “AI supercycle” and plans to integrate internal departments to function as one unified company. He emphasized expanding beyond telecom into defense, national security, and industry. A full strategy update is expected at Capital Markets Day on November 19, 2025.
