Nokia’s Q1 Profit Falls Short of Expectations

Nokia revealed its first-quarter profit figures on Thursday, which significantly underperformed market predictions. The company also cautioned about a temporary setback stemming from US tariffs, projecting a hit of approximately 20 to 30 million euros on its second-quarter earnings.

The comparable operating profit for the first quarter of 2025 amounted to 156 million euros ($176.9 million). This figure is 36% lower than the average analyst forecast of 243.83 million euros, as compiled by LSEG.

Despite losing some ground to its Nordic competitor Ericsson, Nokia’s sales in North America have experienced consistent growth, indicating a resurgence in market strength following a period of instability.

Telecom giant Nokia says net profit rose 89% in 2024.

However, the extensive tariffs imposed by the US administration could potentially disrupt this upward trajectory, as businesses may postpone orders due to concerns about rising costs.

The Finland-based firm also declared a strategic, multi-year extension of its alliance with T-Mobile in the US. This extension aims to broaden the carrier’s 5G network coverage.

The company’s quarterly net sales totaled 4.39 billion euros, a 1% decrease from the previous year and slightly below the 4.41 billion euros anticipated by market analysts. Nokia has reaffirmed its financial outlook for the remainder of the year, which now factors in the acquisition of Infinera.