Financial Data and Key Metrics Changes - The company reported a 9% increase in net sales for Q3 2025, with all business groups contributing to this growth [4][17] - Gross margin for the group declined by 150 basis points year-on-year, primarily due to product mix issues within Network Infrastructure and Mobile Networks [17] - Operating margin was reported at 9%, which is 220 basis points lower than the previous year, largely due to a one-time benefit from the prior year [17][18] - Free cash flow generated was $429 million, with a net cash position of $3 billion at the end of the quarter [18][23] Business Line Data and Key Metrics Changes - Network Infrastructure saw an 11% growth, with Optical Networks leading at 19% sales growth [19] - Cloud and Network Services experienced a 13% increase in sales, with gross margin improving by 380 basis points [20] - Mobile Networks net sales increased by 4%, driven by growth in Vietnam and the Middle East and Africa, although gross margin declined by 370 basis points [21][22] - Nokia Technologies reported a 14% increase in net sales, maintaining an annual run rate of approximately $400 million [22] Market Data and Key Metrics Changes - In North America, strong growth was observed in Network Infrastructure and Cloud and Network Services, while Mobile Networks saw a slight decline [23] - In APAC, India experienced growth in Network Infrastructure, driven by demand for fixed wireless, while Mobile Networks returned to modest growth [23] - Europe remained stable, with no significant changes reported in Q3 [23] Company Strategy and Development Direction - The company is focused on leveraging AI and cloud technologies, with a strategic emphasis on partnerships, such as with EnScale and Super Micro [8][15] - Nokia is transitioning to a continuous improvement culture, emphasizing operational leverage and cost discipline rather than large restructuring programs [18][68] - The company is optimistic about the potential of AI and data center business, particularly in the EU and US markets [101] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the full-year outlook, with expectations for sequential net sales growth in Q4 slightly above historical seasonality [7][15] - The demand environment is described as healthy, with strong order intake particularly in AI and cloud sectors [5][6] - Management acknowledged the need for ongoing innovation and technology leadership to improve returns in Mobile Networks [108] Other Important Information - The integration of the Infinera acquisition is ahead of schedule, contributing positively to net sales and order intake growth [6][71] - A strategic review of venture fund investments led to a decision to scale down passive investments, focusing instead on targeted direct minority investments [14] Q&A Session Summary Question: Progress on IP networks and switching business - Management acknowledged positive metrics and wins in IP networks but noted that they are still a small player in the market, indicating more work is needed [34][35] Question: Growth opportunities in AI and cloud - The biggest opportunities are seen in hyperscalers and sovereign clouds, with significant demand currently coming from these segments [38] Question: Scale across for optics and its implications - Management indicated that while the technology is not new, the demand for innovation is increasing due to bandwidth demands driven by AI data centers [41] Question: Six G mobility investments - Investments in six G technology standardization have already begun, with ongoing R&D efforts [45][46] Question: Factors driving positive surprise in Q3 - Improved gross margins in Cloud and Network Services and successful market share gains in five G standalone core implementations were highlighted [58] Question: Demand in Europe and its implications - Management noted that while demand is stabilizing, the majority of investment is currently happening in the US, with potential upside in Europe if regulations change [101]

Core Viewpoint - The article discusses the evolution of AI applications from tools to systems, emphasizing the efficiency and effectiveness of AI Agents in business operations, particularly in customer service and sales [2][3][5]. Group 1: AI Agent Development - The AI Agent is positioned as a key exploration area for AI applications by 2025, with advancements in model reasoning and memory capabilities allowing for deeper analysis of user needs [3][6]. - Alibaba's subsidiary Lingyang has been testing AI Agent applications for over a year, achieving over 60% reduction in processing time for refunds and significant efficiency improvements in overall operations [2][4]. Group 2: Market Position and Strategy - Lingyang has served over 50,000 enterprises across various industries, leveraging Alibaba's resources to provide differentiated services, with annual revenue in the tens of billions [4][5]. - The company aims to help businesses achieve data-driven growth through its Data as a Service (DaaS) model, focusing on comprehensive data capabilities rather than isolated efficiency improvements [9][19]. Group 3: Customer Service and Sales Applications - The newly launched customer service Agents, including "Super Customer Expert" and "Super Sales Expert," are designed to automate and enhance customer interactions, significantly improving efficiency [11][17]. - The automotive sales Agent can reduce lead processing time by 50% and improve conversion rates by approximately 20%, showcasing the effectiveness of AI in sales operations [17][18]. Group 4: Challenges and Solutions - The deployment of AI Agents faces challenges such as the lack of continuous data and technical talent, which Lingyang addresses by helping enterprises organize their private data [22][23]. - Lingyang's approach includes providing low-threshold solutions and ensuring compatibility with various platforms, enhancing the adaptability of their services across different industries [22][23].