Nokia Restructures Operations Into Network And Mobile Infrastructure Segments As Company Focuses On AI

• Nokia said the reorganization will take effect as of 1 January 2026 and will help accelerate innovation as the AI supercycle increases demand for advanced connectivity.
• The company said that the Network Infrastructure is a growth segment aimed at capitalizing on the rapid, global AI and data center build-out.
• The company added that for Network Infrastructure, the operating margin is expected to be 13% to 17% by 2028.

Nokia (NOK) announced on Wednesday that it was simplifying its operational model into two primary operating segments: Network Infrastructure and Mobile Infrastructure.

The company, which is holding its Capital Markets Day 2025, said that changes to its operating segments and strategies are intended to position it to lead the AI-driven transformation of networks and capture the value of the “AI supercycle.”

Shares of Nokia fell nearly 6% in premarket trading. Nokia said it now expects to grow its annual comparable operating profit to a range of €2.7 billion ($3.13 billion) to €3.2 billion by 2028.

Reorganisation At Nokia

Nokia said the reorganization will take effect as of 1 January 2026 and will help accelerate innovation as the AI supercycle increases demand for advanced connectivity.

The company said that Network Infrastructure is a growth segment aimed at capitalizing on the rapid, global AI and data center build-out while continuing to innovate for Nokia’s telecommunications customer base.

Nokia said that the new Mobile Infrastructure segment will bring together the company’s Core Networks portfolio, Radio Networks portfolio and Technology Standards, formerly Nokia Technologies. The company added that it will be positioned to lead the industry in core and radio network technology and services, driving AI-native networks and 6G.

“Nokia changed the world once by connecting people — and will again by connecting intelligence,” said Justin Hotard, President and CEO of Nokia.

Long-Term Targets

Nokia said it expects net sales growth in Network Infrastructure and targets 6% to 8% net sales compound annual growth rate during 2025-2028.

The company added that for Network Infrastructure, operating margin is expected to be 13% to 17% by 2028, and Mobile Infrastructure gross margin is expected to be 48% to 50% by 2028.

What Is Retail Thinking?

Retail sentiment on Nokia remained unchanged in the ‘bearish’ territory, with message volumes at ‘extremely low’ levels, according to data from Stocktwits.

Shares of Nokia have gained over 56% in the last 12 months.

€1 = $1.16

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