Nokia delivered a strong second quarter as rising AI infrastructure spending fueled robust growth across its networking businesses, reinforcing management’s strategy to focus on the AI supercycle.

According to a Tuesday statement, the company’s net sales increased 9% on a constant-currency basis, while AI and Cloud revenue more than doubled from a year earlier and generated €2.8 billion of new orders, providing visibility into future revenue growth.

Nokia’s Network Infrastructure division posted double-digit growth, driven by strong demand for optical and IP networking products used in AI data centers, while Mobile Infrastructure also expanded with a stable profit contribution.

Comparable profitability improved across the business, though reported earnings were significantly affected by accelerated restructuring costs as Nokia moves more aggressively to streamline operations and redirect resources toward growth areas.

Nokia left its operational guidance unchanged and adjusted its comparable operating profit forecast to €2.1 billion-€2.6 billion because two businesses are now classified as discontinued operations.

The company also highlighted continued investment in US optical manufacturing capacity, including a planned semiconductor facility expansion, as it prepares for expected AI-driven demand growth in 2027 and beyond.