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    Home > Finance > Nokia chair to step down, AI push supports Q4 profit
    Finance

    Nokia chair to step down, AI push supports Q4 profit

    Published by Global Banking & Finance Review®

    Posted on January 29, 2026

    3 min read

    Last updated: January 29, 2026

    Nokia chair to step down, AI push supports Q4 profit - Finance news and analysis from Global Banking & Finance Review
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    Tags:innovationtechnologyfinancial communityArtificial Intelligencecorporate profits

    Quick Summary

    Nokia met earnings forecasts as AI integration boosts profitability, despite a 3% drop in operating profit, aligning with analyst expectations.

    Table of Contents

    • Nokia's Leadership Changes and Financial Performance
    • Impact of AI on Profit
    • Restructuring and Future Outlook
    • Dividend and Sales Performance

    Nokia's Chair Sari Baldauf to Depart as AI Strategy Boosts Q4 Profits

    Nokia's Leadership Changes and Financial Performance

    By Gianluca Lo Nostro and Agnieszka Olenska

    Impact of AI on Profit

    Jan 29 (Reuters) - Finland's Nokia said on Thursday that longtime chair Sari Baldauf planned to step down and the telecom gear maker would propose Timo Ihamuotila as her successor, after a push into artificial intelligence helped it meet quarterly earnings expectations.

    Restructuring and Future Outlook

    Shares of Nokia fell 6% in early Helsinki trading, among the worst performers on Europe's benchmark Stoxx 600 index.

    Dividend and Sales Performance

    Baldauf, one of Nokia's longest‑serving executives, has chaired the board since 2020 after returning to the company in 2018. Her earlier tenure from 1994 to 2005 coincided with Nokia’s rise as a global leader in the mobile phone market.

    Ihamuotila, who already serves as vice chair, was Nokia’s chief financial officer between 2009 and 2016. He is set to leave Swiss group ABB by the end of 2026.

    Nokia's comparable operating profit fell 3% to 1.05 billion euros ($1.26 billion) in the fourth quarter, broadly in line with the average estimate of 1.01 billion euros from analysts polled by LSEG.

    Nokia is carrying out one of its biggest restructuring drives since it sold its iconic mobile phone business more than a decade ago, banking on AI and data centre demand to offset weak spending and contract losses in the 5G field.

    Last year, it appointed former Intel executive Justin Hotard as its CEO to speed up the transition. Still, a profit warning tied to U.S. import tariffs and a weaker dollar have hit the margins, mounting pressure for deeper cost cuts.

    Fourth-quarter net sales reached 6.12 billion euros, also meeting analysts' forecast.

    Optical Networks led the growth with a 17% rise, as order intake stayed strong and book-to-bill ratio remained above one, driven by AI and cloud demand. Nokia considers this unit to be critical in scaling AI infrastructure, with investments set to support long-term performance, it said.

    The group expects comparable operating profit in 2026 to come between 2 billion and 2.5 billion euros, an outlook that analysts from Jefferies called "somewhat conservative" in their note on the results.

    Nokia said it would keep its dividend payout unchanged from the previous year at up to 14 euro cents per share.

    ($1 = 0.8345 euros)

    (Reporting by Gianluca Lo Nostro and Agnieszka Olenska in Gdansk; Editing by Milla Nissi-Prussak)

    Key Takeaways

    • •Nokia met its quarterly earnings expectations.
    • •AI integration has positively impacted Nokia's profitability.
    • •Comparable operating profit fell by 3% in Q4 2025.
    • •Analyst estimates were closely aligned with actual results.
    • •Nokia's strategic shift towards AI is proving effective.

    Frequently Asked Questions about Nokia chair to step down, AI push supports Q4 profit

    1What is artificial intelligence?

    Artificial intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn. AI can perform tasks such as problem-solving, understanding natural language, and recognizing patterns.

    2What is operating profit?

    Operating profit is the profit a company makes from its core business operations, excluding deductions of interest and taxes. It reflects the efficiency of a company's operations.

    3What is a quarterly earnings report?

    A quarterly earnings report is a financial statement that publicly traded companies must file every three months. It provides insights into the company's financial performance, including revenue, expenses, and profit.

    4What is a financial performance?

    Financial performance measures how well a company can use its assets to generate revenues and profits. It is typically assessed through various financial metrics, including profit margins and return on equity.

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