Nokia (NOKIA) CMD 2025 summary

Strategic vision and market opportunity

• Focuses on leading the AI supercycle, positioning for multi-wave technology transformation and connecting intelligence across industries.

• Five strategic priorities: accelerate AI/cloud growth, lead in AI-native networks and 6G, co-innovate with customers, focus capital and R&D on differentiation, and drive sustainable returns.

• Identifies three core customer segments: telcos, AI/cloud providers, and mission-critical enterprises, each with tailored strategies and co-innovation models.

• Addressable market outside China and Russia projected at €116bn by 2028, with AI & Cloud and Mission Critical segments growing at 16% and 11% CAGR, respectively, from 2025 to 2028.

• Announces the creation of a new Nokia Defense business unit to accelerate co-innovation in defense and public sector markets.

Technology and product innovation

• AI-native networks are central, with investments in software-defined RAN (AnyRAN), cloud-native core, and advanced optical/IP networking.

• Partnerships with NVIDIA and Red Hat enable AI-based innovations in radio and core networks, supporting seamless evolution to 6G.

• Launch of 50G PON and 800G coherent pluggables, with vertical integration in optical components and expansion of U.S.-based fab capacity.

• Bell Labs research and AI-driven optimization (e.g., Bayesian beamforming) are reducing network costs and improving performance.

• Autonomous network layer and AI ops tools (e.g., WaveSuite, Altiplano) are being deployed to enable self-managing, secure, and adaptive networks.

Financial guidance and portfolio management

• Targets double-digit operating profit CAGR through 2028, with a new operating profit goal of €2.7–3.2 billion by 2028, up from €2 billion in the past 12 months.

• Network Infrastructure (NI) aims for 6%-8% net sales CAGR and 13%-17% operating margin by 2028, driven by synergies from the Infinera acquisition and product mix improvements.

• Mobile Infrastructure (MI) targets gross margin expansion to 48%-50% and operating profit growth from a €1.5 billion base.

• EUR 1.2 billion in gross cost savings targeted by 2026, with workforce reductions and efficiency programs underway.

• Group free cash flow conversion targeted at 65%-75% of comparable operating profit.