Nokia unveils restructuring to power the AI supercycle with AI-ready networks, targeting €2.7–3.2B by 2028 and advancing 6G to anchor digital infrastructure.
© A. Krivonosov
Nokia has unveiled a new strategy designed to propel the company to the forefront of the coming AI supercycle—a period of rapid growth in demand for networks built for artificial intelligence. Speaking at Capital Markets Day 2025, the company outlined a sweeping restructuring, fresh financial targets, and a revamped management model. The ambition is straightforward: turn AI-ready networks into a growth engine and reinforce Nokia’s position in the global market.
The company will streamline its structure to two core business units: Network Infrastructure and Mobile Infrastructure. The shift takes effect on January 1, 2026. Under the new plan, Nokia aims to lift comparable operating profit to €2.7–3.2 billion by 2028, up from the current €2 billion.
CEO Justin Hotard said the company is moving from connecting people to connecting intelligence. He argued that Nokia’s networks—spanning optical and fixed solutions through to mobile technologies and future 6G—form a critical technological foundation for AI. The message is clear: Nokia wants to be the backbone of the AI era.
Network Infrastructure, to be led by David Heard, is positioned as the main growth driver. It will bring together optical, IP, and fixed networks, targeting surging demand from data centers and telecom operators. Between 2025 and 2028, Nokia expects the unit’s sales to grow 6–8% annually, with combined optical and IP segments rising 10–12%.
Mobile Infrastructure will combine the network core, radio networks, and the standards organization, focusing on building native mobile networks and advancing 6G. Hotard will lead this segment on an interim basis. Nokia expects the unit’s margin to reach 48–50% by 2028.
Units outside the strategic focus will be grouped into a separate Portfolio Businesses category, with their future course to be determined in 2026. In essence, the strategy is a bet on where network demand is heading: adapting to rapid shifts in networking technologies, the rising role of AI, and the realities of tomorrow’s digital infrastructure.