Nokia(US:NOK) Globenewswire·2025-10-23 05:00Core Insights - Nokia Corporation reported a solid performance in Q3 2025 with net sales growing 9% year-over-year on a constant currency and portfolio basis, and 12% reported [4][7] - The company is on track to achieve its full-year outlook, with a revised comparable operating profit guidance now between EUR 1.7 billion and EUR 2.2 billion [10][18] Financial Performance - Q3 2025 net sales reached EUR 4.83 billion, compared to EUR 4.33 billion in Q3 2024, reflecting a 12% increase [7][11] - Comparable gross margin declined by 150 basis points year-over-year to 44.2%, while the reported gross margin also decreased by 150 basis points to 43.7% [7][8] - Comparable operating margin decreased by 220 basis points year-over-year to 9.0%, with reported operating margin up 140 basis points to 5.0% [7][12] - Q3 2025 comparable diluted EPS was EUR 0.06, down from EUR 0.03 in Q3 2024 [7][12] Business Group Performance - Network Infrastructure saw an 11% increase in net sales, with Optical Networks growing 19%, driven by demand from AI and Cloud customers [5][6] - Cloud and Network Services reported a 13% increase in net sales, benefiting from strong operator investments in 5G Core [6][12] - Mobile Networks experienced a 4% growth, indicating market stabilization [6][12] Strategic Developments - Nokia announced a strategic partnership with Nscale to become a preferred networking equipment vendor for their data center buildout [5] - The company is scaling down its passive venture fund investments, changing how these investments are presented in financials [9][21] Outlook - The company maintains its full-year outlook for 2025, expecting strong growth in Network Infrastructure and Cloud and Network Services, while projecting stable net sales in Mobile Networks [20][18] - Free cash flow is expected to convert at a rate of 50% to 80% from comparable operating profit [15]