Catenaa, Saturday, February 07, 2026- Nokia reported modest fourth-quarter growth and outlined a long-term strategy focused on AI-driven network infrastructure, even as mobile revenue remains flat and investor response weighed on its shares.

The company posted 3% year-on-year sales growth after adjustments, largely driven by its Network Infrastructure unit.

Optical Networks, covering inter-data centre connectivity, grew 17%, while IP Networks also saw strong order intake.

CEO Justin Hotard said demand from AI and cloud customers is shaping Nokia’s strategic investments. Fixed Networks saw 16% growth in fibre optical line terminals, offset by softness elsewhere in the portfolio.

Hotard acknowledged that mobile operations are unlikely to contribute significantly to near-term growth.

The firm has not yet appointed a head of its mobile division, signaling a deprioritization of that segment. Nokia acquired Infinera to strengthen its optical and data centre capabilities, framing the company’s future around AI-driven infrastructure and cloud network solutions.

Regionally, North America and emerging markets drove sales, while Europe remained flat and China and India declined.

Nokia’s “portfolio businesses,” including fixed wireless access, enterprise edge, site implementation, and microwave, may be divested to focus resources on AI and optical growth.

Despite strong AI and cloud demand, Nokia guided for flat full-year profit in 2026, prompting a roughly 5% drop in share price.