Core Viewpoint - Nokia Oyj is restructuring its long-term strategy to adapt to the shift towards AI-driven networks and next-generation connectivity, as traditional 5G growth slows and customer demand for intelligent infrastructure increases [1] New Operating Structure and Ambitions - Starting January 1, 2026, Nokia will reorganize into two core divisions: Network Infrastructure and Mobile Infrastructure, aiming to enhance execution speed and investment focus [2] - The company has set a comparable operating profit target for 2028 of €2.7 billion to €3.2 billion [2] Reasons for the Reset - Slower 5G spending and rising demand for AI-native networks necessitate a leaner operational model, while also aiming to position Nokia as a secure Western supplier amid geopolitical changes [3] - Updated financial targets include a 6–8% annual growth in Network Infrastructure sales from 2025 to 2028, with Optical and IP Networks expected to grow at a 10–12% rate [3] Updated Financial Targets and KPIs - By 2028, Nokia targets a Network Infrastructure operating margin of 13–17% and a Mobile Infrastructure gross margin of 48–50% [4] - The company plans to reduce centralized operating expenses to €150 million from approximately €350 million and convert 65–75% of comparable operating profit into free cash flow [4] Strategic Priorities - Nokia's strategic focus includes expanding AI and cloud capabilities, leading AI-native and future 6G network development, deepening customer partnerships, tightening capital allocation, and delivering sustainable returns [5] - Actions to support these priorities involve grouping slower-growth units into a new Portfolio Businesses division and launching a defense incubation unit for secure-connectivity opportunities [5] Price Action - Nokia shares are trading 6.17% lower at $6.23 in premarket trading [6]