Nokia Q1 2025: Infinera boost, Networks shine, Technologies drag 

Nokia just dropped its financial results for the first quarter of 2025, and while there’s a bit of red in the numbers, it’s not all bad news — especially if you’re a fan of fiber optics and hyperscalers. Here’s a summary of what went down.

The headline figures are not a blockbuster start, but not a disaster either. Nokia’s overall net sales fell 3% year-over-year on a comparable basis (just 1% on the books). The biggest blow came from Nokia Technologies, where revenue nearly halved due to a tough comparison to last year’s licensing deals. That alone shaved off a big chunk of profit.
Operating profit dropped to €156 million from €600 million last year. Comparable EPS came in at €0.03, while reported EPS was slightly in the red at -€0.01. Still, free cash flow was solid at €700 million, and Nokia’s cash cushion remains decent at €3 billion.

Finally Networks did the heavy lifting. Network Infrastructure was the star of Q1:

• Net sales (20% reported).
• Strong performance across IP, Optical, and Fixed Networks.
• Integration of Infinera is well underway, adding weight and depth to Nokia’s optical portfolio.
• Net sales in Optical jumped 15%, with big design wins among hyperscalers.
• Cloud and Network Services followed with an 8% growth in net sales, thanks to demand for 5G Core and wins at AT&T, Telefónica, and others.
• Mobile Networks eked out a 2% growth, but was hit hard by a one-off contract settlement of €120 million. Without it, profitability would have looked better.

Now, Nokia Technologies were a kind of an anchor on Q1. Nokia’s licensing division, usually a cash cow, had a rough time since the sales dropped 51%.
Operating profit more than halved. Still, new deals signed during the quarter pushed the annualized licensing revenue run-rate to €1.4 billion.

New CEO Justin Hotard’s first impression were hopeful and focused. Only three weeks in, CEO Justin Hotard seems optimistic. He praised Nokia’s core tech and highlighted the company’s potential in hyperscale, enterprise, and defense markets. His immediate focus is on better capital allocation and long-term growth, while dealing with tariff and supply chain headwinds.

 

Here is the short Shareholder update.

• Dividend proposal: Up to €0.14/share for FY2024, to be paid in four chunks starting in May.
• Buyback done: Nokia wrapped up its 150M share repurchase, worth ~€703 million. Shares were cancelled just days ago (whic related quickly to the stock price – from 4.6 to 4.25 EUR now)

Importantly, the Outlook for 2025 seems to be unchanged although top-end may be tough to reach. Nokia still aims for:

• €1.9–2.4 billion in comparable operating profit.
• Free cash flow conversion of 50%–80%.
• The Infinera deal is expected to be a growth lever, but unexpected charges like the one in Mobile Networks make hitting the upper range a challenge. Tariffs may cause a €20–30 million dent in Q2 profits, and uncertainty looms over the second half.

 

Nokia’s Q1 is a mixed bag. Networks are powering the company ahead, especially with Infinera now onboard, but the good, old Nokia Technologies is faltering. The new CEO sounds like he has a plan and wants to listen more before making bold moves. If the network side keeps growing and the licensing biz steadies, Nokia might just pull off a decent 2025.

Want to dive into the full details and see the numbers, check out the official report and CEO video at nokia.com/financials.