Finnish telecom gear maker Nokia posted a 12% year‑on‑year rise in first‑quarter network‑infrastructure sales, beating its own forecast of 6‑8% growth. The surge stemmed from robust orders tied to artificial‑intelligence and data‑center projects, sectors the company has been courting as traditional operator demand plateaus. Analysts see the lift as a validation of its pivot beyond legacy telecom customers in 2026.

The quarter also delivered €1 billion in new contracts from AI and cloud clients, underscoring Nokia’s success in converting hype into billable projects. Revenue from these segments helped offset slower growth in traditional mobile‑backhaul gear, narrowing the gap between the firm’s top‑line outlook and the broader market’s expectations for telecom equipment makers throughout the fiscal year and beyond in 2026 overall.

Investors greeted the beat with a modest share uptick, rewarding the clearer growth trajectory. With AI‑driven traffic expected to keep expanding, Nokia’s equipment—particularly its high‑capacity routers and optical solutions—stands to capture additional spend. The firm now projects full‑year network‑infrastructure revenue at the high end of its previously given range for 2026, reinforcing its shift toward non‑operator markets and higher margins.