Nokia's Q2 2025: Discrepancies in Hyperscaler Strategy, Tariff Challenges, and Fiber Opportunities

Network Infrastructure Performance:
- Network Infrastructure (NI) reported an 8% growth in Q2, with Fixed Networks leading at 17%, Optical Networks at 6%, and IP Networks at 3%.
- The growth was driven by strong demand in Optical Networks and positive reception for the Infinera acquisition, although supply constraints slowed growth somewhat.

Mobile Network Challenges:
- Mobile Networks (MN) net sales declined by 13%, primarily due to a EUR 150 million revenue recognition from a contract settlement in the prior year.
- The demand environment remains broadly consistent, with customers continuing planned investments, leading to expectations of stable net sales in MN for the full year.

Currency Impact and Guidance Revision:
- The company revised its full-year outlook due to currency headwinds, expecting a EUR 230 million impact on operating profit from a move in the euro-dollar rate from 1.04 to 1.17.
- The guidance was also influenced by tariff impacts, estimated between EUR 50 million and EUR 80 million for the full year.

Hyperscaler and Fixed Networks Opportunities:
- Hyperscalers accounted for 5% of net sales, acting as a significant growth driver for Network Infrastructure, with particular strength in Optical Networks.
- Fixed Networks are expected to grow strongly due to increased fiber appetite among Tier 1 CSPs, with a strong market leadership position in operator premise equipment.