Nokia Corp - ADR

Strong Q3 momentum + clear operating leverage (good) - Net sales +9% YoY; operating margin +220 bps to 11.7%. - AI & cloud was the key driver: net sales +123% YoY and represented 12% of total group net sales. - Company says it is tracking above the midpoint of full-year comparable operating profit guidance (guidance unchanged; note they also mention pull-forward from Q4 affecting linearity).

AI & cloud orders remain very strong and demand still exceeds supply (big opportunity; also a constraint) - AI & cloud order intake +118% YoY to EUR 1.5bn gross. - IP Networks +43% YoY and Optical Networks +18% YoY; both are demand-led with supply constraints. - Full-year assumption updated: Optical + IP are now expected to grow somewhat above the prior 18–20% assumption. - 2027 outlook (forecast): Optical + IP combined expected to grow ~25–30% (reflecting strong market + capacity build).

Customer wins converting into revenue; key capacity/technology ramp story (surprising + favorable) - 800G coherent pluggables: shipment volumes increasing more than 2x sequentially; design wins with 29 customers. - Multi-rail “in-line systems” launched in March: 25% higher density vs competitors, with 3 design wins and initial volumes starting with the first customer. - AI RAN: reported commercial traction signals (e.g., T-Mobile completed first live voice call over AI RAN; Elisa ran voice/data/AI workloads simultaneously). Nokia says engagement is accelerating with 19 customers.