A photograph taken on December 22, 2025 shows shows the logo of the Finnish multinational telecommunications, information technology, and consumer electronics corporation Nokia, displayed on a technical service building in Nozay, south of Paris. (Photo: AFP)

Finnish telecommunications company Nokia reported stronger net sales and a sharp rise in operating profit in the first quarter of 2026, according to its interim report released on Thursday.

From January to March, Nokia's net sales rose 4 percent year-on-year to 4.50 billion euros (5.26 billion U.S. dollars), up from 4.39 billion euros (5.13 billion dollars) in the same period last year. Its comparable operating profit jumped 54 percent to 281 million euros (328.44 million dollars).

According to the report, the growth was driven mainly by its Artificial Intelligence (AI) and Cloud business, where net sales increased 49 percent, and its Optical Networks segment, which posted a 20 percent rise in net sales.

The results exceeded market expectations. Finnish daily Helsingin Sanomat reported that analysts had forecast Nokia's operating profit at 250 million euros (292.21 million dollars).

Nokia President and Chief Executive Officer Justin Hotard said the better-than-expected performance was supported by strong market demand, particularly in AI and Cloud business, which now accounts for 8.0 percent of the company's total sales.

"We now expect Network Infrastructure net sales to grow between 12 percent and 14 percent in 2026. We expect Optical Networks and IP Networks combined to grow between 18 percent and 20 percent," Hotard said in the interim report.

He added that Nokia is increasing its investment in Optical Networks to capture opportunities in the rapidly expanding market.

Following the results, Nokia's share price surged as much as 10 percent to above 9 euros (10.52 dollars) on the Helsinki stock exchange on Thursday. Helsingin Sanomat noted that it was the first time since 2010 that the company's share price had risen above that level.