Nokia has unveiled a sweeping strategic overhaul aimed toward positioning the corporate to guide the AI-driven transformation of world networks. Introduced at its Capital Markets Day 2025, November 19, the plan features a new operational mannequin, streamlined enterprise segments, management adjustments, and up to date long-term monetary targets as the corporate seeks to capitalize on what it calls the rising AI supercycle. Nokia stated it intends “to place itself to guide within the AI-driven transformation of networks and seize the worth of the AI supercycle.”
Nokia Launches AI-Targeted Strategic Transformation
Underneath the revised technique, Nokia will consider 5 priorities: accelerating progress in AI and cloud, advancing AI-native cellular connectivity and 6G, increasing co-innovation with prospects and companions, directing capital to areas the place it could differentiate, and driving sustainable long-term returns.
Nokia President and CEO stated the corporate intends to “join intelligence” in the identical transformative method it as soon as related individuals.
“Nokia modified the world as soon as by connecting individuals — and can once more by connecting intelligence. Because the trusted western supplier of safe and superior connectivity, our know-how is powering the AI supercycle. From fastened to cellular infrastructure we’re creating know-how that accelerates worth for our prospects. I’m pleased with the work Crew Nokia is doing to focus and lead this vital period in connectivity,” stated Justin Hotard, President and CEO of Nokia.
Two New Working Segments
From January 1, 2026, Nokia will reorganize its operations into two major segments—Community Infrastructure and Cellular Infrastructure—to higher align with buyer wants and rising demand for AI-ready networks. Community Infrastructure, recognized as a key progress engine, will proceed below the management of David Heard and comprise three enterprise items: Optical Networks, IP Networks and Fastened Networks.
“The reorganization acknowledges Community Infrastructure as a progress phase, positioned to capitalize on the speedy, world AI and information heart build-out whereas persevering with to innovate for its telecommunications buyer base,” Nokia stated in an change submitting.
The brand new Cellular Infrastructure phase will consolidate Nokia’s Core Networks portfolio, Radio Networks portfolio and Know-how Requirements, previously Nokia Applied sciences. CEO Justin Hotard will lead this division on an interim foundation, overseeing Core Software program, Radio Networks and Know-how Requirements.
“It will likely be positioned for core and radio community know-how and companies management to guide the trade to AI-native networks and 6G. The brand new phase brings collectively a portfolio whose worth creation is based on cellular communication applied sciences primarily based on 3GPP requirements with a powerful money movement place underpinned by IP licensing,” the corporate stated.
Management Modifications
The corporate additionally introduced a number of management adjustments efficient subsequent yr. Raghav Sahgal will assume the position of Chief Buyer Officer, whereas Patrik Hammaren will proceed within the Group Management Crew as President of Know-how Requirements. Tommi Uitto will step down from the management crew at year-end, efficient December 31.
Portfolio Companies Phase
Nokia can also be making a devoted “Portfolio Companies” phase for items thought-about non-core to its future technique however with potential standalone worth. These embody Fastened Wi-fi Entry CPE, Web site Implementation and Outdoors Plant, Enterprise Campus Edge, and Microwave Radio. Collectively, the items generated roughly EUR 0.9 billion in gross sales and a EUR 0.1 billion working loss over the previous yr.
Nokia expects to resolve on its long-term route in 2026. The corporate can also be launching “Nokia Protection” as an incubation unit to consolidate analysis, improvement, and go-to-market actions in defense-grade options for allied markets.
“Constructing on the robust basis of Nokia Federal Options within the US, the corporate sees additional alternatives within the US, Finland, and different allied nations to ship defense-grade options primarily based on Nokia’s core applied sciences in Community and Cellular infrastructure,” Nokia stated.
Monetary Targets and KPIs
As a part of its up to date monetary framework, Nokia has set a brand new long-term goal to elevate comparable working revenue to between EUR 2.7 billion and EUR 3.2 billion by 2028, up from EUR 2.0 billion over the past 12 months. The corporate additionally launched a collection of strategic KPIs, together with a 6–8 % internet gross sales CAGR for Community Infrastructure, a 13–17 % working margin goal by 2028, and a Cellular Infrastructure gross margin purpose of 48–50 %. Nokia goals to cut back Group Frequent and Different working bills to EUR 150 million by 2028 and ship free money movement conversion of 65–75 %.
Nokia will start reporting below its new construction within the first quarter of 2026 and plans to publish recast financials for 2024 and 2025 early that yr to help buyers’ transition to the up to date framework.
Nokia Pronounces USD 4 Billion US Funding
On Friday, November 21, 2025, Nokia introduced plans to take a position USD 4 billion in increasing its US-based analysis, improvement, and manufacturing operations, in collaboration with the Trump administration. The multiyear funding is aimed toward accelerating innovation throughout AI-ready cellular, fastened entry, IP, optical and information heart networking applied sciences. The deliberate funding over a number of years is along with Nokia’s USD 2.3 billion funding in US manufacturing, R&D, and AI connectivity by way of its acquisition of Infinera. Infinera had beforehand dedicated USD 456 million towards two US manufacturing amenities that acquired CHIPS Act incentives.
The corporate expects to allocate roughly USD 3.5 billion of the brand new funding to US R&D, underscoring its long-term dedication to advancing next-generation connectivity and AI applied sciences. The funding will assist improvement throughout the total spectrum of community applied sciences—together with cellular, fastened, IP, optical, information heart networking, and mission-critical and protection options. Nokia emphasised that its US innovation efforts will proceed to construct on the legacy of Nokia Bell Labs, headquartered in New Jersey, which has produced breakthrough applied sciences for greater than a century.
Of the full quantity, roughly USD 500 million can be directed towards capital expenditures for manufacturing and R&D infrastructure in states together with Texas, New Jersey, and Pennsylvania. The corporate stated these investments will assist bolster its portfolio of AI-optimized networking options and strengthen innovation in automation, quantum-safe networks, semiconductor manufacturing and testing, packaging, and supplies science.
“Nokia’s USD 4 billion funding is one other Trump administration win for America,” stated Secretary of Commerce Howard Lutnick. “Their funding in manufacturing, packaging, and R&D for optical chips means probably the most progressive applied sciences that energy AI, information facilities, and significant nationwide safety purposes can be developed and constructed right here within the USA.”
“Nokia innovation and applied sciences are foundational to at the moment’s vital community infrastructure. Our expanded funding will assist strengthen the nation’s capability to ship higher safety, productiveness, and prosperity by way of AI-optimized connectivity at scale, whereas advancing the latest analysis and innovation that may form the way forward for networking for the years to return,” stated Nokia President and CEO, Justin Hotard.
