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

Company: NOKIA CORP
Filing Date: 2025-10-23
Form: 6-K
Chunk 10
---
 information has been recast accordingly. Refer to the Financial statements and           
 the Recast financial information sections for more information, including full comparative         
 financial information for each quarter Q1-Q3'24 and Q1-Q2'25. (2) This metric provides additional  
 information on the growth of the business and adjusts for both currency impacts and portfolio      
 changes. The full definition is provided in the Alternative performance measures section           
 in this report. 23 October 2025 1                                                                  |

| CEO                                                                                                 
 Commentary In the following quote, net sales comments and growth rates are referring to comparable  
 net sales and are on a constant currency and portfolio basis. References to margins are related     
 to Nokia's comparable reporting. We delivered a solid performance in Q3 with net sales growing      
 9% and all business groups growing. Network Infrastructure delivered 11% net sales growth.          
 Optical Networks grew 19%, coming largely from AI & Cloud customers. Order intake trends            
 in Optical Networks and IP Networks remained strong with book-to-bill well above 1. Our new         
 800G ZR/ZR+ pluggables for data center interconnect became generally available and have started     
 shipping to a large US customer. We are opening a second Indium Phosphide semiconductor fabrication 
 facility in San Jose before the end of next year to support the growth opportunity we see           
 in our optical components business. In the quarter we also announced an important strategic         
 partnership with Nscale which will see us become a preferred networking equipment vendor            
 for their data center buildout. In Q3, AI and Cloud customers accounted for 6% of our net           
 sales at the group level and 14% for Network Infrastructure. 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