Financial Data and Key Metrics Changes - Q2 2025 net sales were €4.55 billion, reflecting a 1% decline on a constant currency and portfolio basis [17] - Gross margin remained stable at 44.7%, while operating margin declined to 6.6% due to negative currency impacts and tariffs [18] - Free cash flow generated in the quarter was €88 million, with a net cash position of €2.9 billion at the end of the quarter [23] Business Line Data and Key Metrics Changes - Network infrastructure grew by 8%, with fixed networks up 17%, optical networks up 6%, and IP networks up 3% [18][19] - Mobile networks saw a 13% decline, primarily due to accelerated revenue recognition from the previous year [20] - Cloud and network services net sales increased by 14%, driven by growth in North America and Asia Pacific [21] - Nokia Technologies net sales increased by 3% on a constant currency basis, maintaining a run rate of approximately €1.4 billion [22] Market Data and Key Metrics Changes - Hyperscalers accounted for 5% of net sales in Q2, with strong demand driving order intake [11] - North America experienced a decline in mobile networks but saw double-digit growth in network infrastructure and cloud services [22] - APAC region showed flat sales in India due to a pause in mobile network investments, while growth was noted in fixed networks [22] Company Strategy and Development Direction - The company is focusing on unifying corporate functions to improve productivity and customer value [6][7] - Investments are being made in optical networking and AI infrastructure to capitalize on market transitions [5][10] - The company plans to discuss its full value creation strategy at the Capital Markets Day on November 19 [7][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities in connectivity, particularly in the AI super cycle [5] - The demand environment remains consistent, with no major impacts from geopolitical uncertainties [10] - Full-year expectations include strong growth in network infrastructure and stable net sales in mobile networks, with operating profit guidance revised down due to currency and tariff impacts [14][15] Other Important Information - The company is experiencing a €230 million headwind to operating profit due to currency fluctuations [15] - The tariff situation is expected to impact operating profit by €50 million to €80 million for the full year [15][18] Q&A Session All Questions and Answers Question: What is required to win large hyperscaler deals? - Management emphasized the importance of customer relationships and understanding customer needs to increase sales to hyperscalers [34] Question: Will the fiber build programs from U.S. Telcos accelerate into 2026? - Management expressed optimism about growth opportunities in fiber builds due to recent legislative support and customer demand [36] Question: Can you discuss the guidance revision? - Management explained that uncertainties have increased due to currency shifts and tariff impacts, leading to a prudent adjustment of the guidance range [44][46] Question: Can you provide insights on network infrastructure performance in Q2? - Management noted that supply chain constraints affected growth, but they expect strong performance in the second half driven by hyperscale and AI data center customers [50][52] Question: What is the outlook for the optical business? - Management acknowledged that while there is growth, they are still catching up in market share and need to continue product development to compete effectively [86]