Company: NOKBF
Filing Date: 2025-10-23
Form Type: 6-K
Source: 0001104659-25-101680
Chunk: 2

Company: NOKIA CORP
Filing Date: 2025-10-23
Form: 6-K
Chunk 2
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. In
Q3, AI and Cloud customers accounted for 6% of our net sales at the group level and 14% for Network Infrastructure.

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Cloud and Network Services delivered 13% net sales growth as operator
investments in 5G Core remain strong. Our cloud-native 5G Core offering continues to gain traction, and we are gaining market share.
In the first half of 2025 we took the #1 market share position in Voice Core (Dell ‘Oro excl. China). Mobile Networks delivered
4% growth and we continue to see the market stabilize. Commercially, we announced an agreement with VodafoneThree, re-entering as a major
radio supplier in their network. Nokia Technologies signed several new deals in the quarter, while our annual net sales run-rate is approximately
EUR 1.4 billion.

At a group level, gross margin declined 150 basis points compared
to the prior year. This was due to the expected weaker software contribution in Mobile Networks, balancing the higher-than-normal contribution
in Q2, and product mix effects in Network Infrastructure. Operating margin was stable year-on-year, excluding a one-time benefit seen
in the prior year related to a provision reversal.

Following a strategic review, we have decided to scale down our passive
venture fund investments. Therefore, we are also changing how we present these investments in our financials, they will now be within
financial income and expenses instead of affecting operating profit. We may still make targeted minority investments, directly as Nokia,
that can accelerate our strategy.

Looking forward, we are on track to achieve our full year outlook.
The change in presentation of venture fund investments leads to a technical increase of EUR 0.1 billion to our comparable operating profit
outlook which is now EUR 1.7 to 2.2 billion. We are tracking towards the midpoint of the range.

At our Capital Markets Day in New York on November 19th, we will
share our strategy to unlock the full potential of our portfolio and the steps we are taking to focus the company to deliver growth and
operating leverage. The AI supercycle is accelerating demand for providers of advanced and trusted connectivity. Nokia is uniquely positioned
to be a leader in this market.

Justin Hotard

President and CEO

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FINANCIAL RESULTS

| EUR million (except for EPS                
 in