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- **Revenue Growth**: Q3 net sales +9%, driven by AI/cloud (6% of sales) and Infinera acquisition.
- **Profitability**: Operating margin flat YoY (9%), with €429M free cash flow.
- **Strategic Focus**: 6G R&D investments, hyperscale switching design wins, and Nscale partnership.
- **Q4 Outlook**: Net sales growth >22% YoY, tracking to midpoint of €1.7-2.2B operating profit range.
- **Risk Management**: Mobile Networks gross margin volatility due to software mix; 2026 normalization expected.

**【CEO Summary Section】**
- Delivered 9% net sales growth in Q3, driven by all business groups. AI and cloud customers contributed 6% of total sales, up from 5% in Q2.
- Network Infrastructure gross margin improved sequentially, while Mobile Networks margin was impacted by lower software revenue mix.
- On track to meet full-year operating profit guidance, with Q4 net sales expected to grow above historical seasonality of 22%.
- Announced strategic partnership with Nscale and Supermicro, securing new design wins in hyperscale switching.
- Infinera acquisition contributed strongly to order intake and net sales growth.

**【CFO Financial Commentary】**
- Q3 net sales: €5.3B (9% YoY), with all business groups growing.
- GAAP net income: €420M; Non-GAAP EPS: €1.08 (beat expectations).
- Operating margin declined 220bps YoY due to one-time prior-year loss allowance reversal; adjusted margin flat YoY.
- Free cash flow: €429M; net cash position: €3B.
- Cost savings program targets €450M in 2025, focusing on continuous improvement vs. large restructuring programs.
- Network Infrastructure (11% growth) and Cloud & Network Services (13% growth) led segment performance.

**【Q&A Highlights】**
- **AI & Cloud Growth**: 6% of sales from AI/cloud customers, up from 5% Q2; hyperscale book-to-bill >1x in Optical.
- **6G Strategy**: Early investments in 6G pre-standardization; R&D focus on AI-RAN, Cloud RAN, and spectrum efficiency.
- **Mobile Networks Margin**: Q3 gross margin 35% (down 370bps YoY) due to software mix; expect normalization in 2026.
- **Capital Markets Day**: November 19 event to detail strategy to unlock portfolio potential in AI/Cloud supercycle.
- **Venture Fund Shift**: Scaling back passive investments; focusing on targeted direct minority investments (e.g., Nscale partnership).

Nokia Oyj (NOK) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

NOK

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