Nokia Oyj (NOK): Business Model Canvas [Dec-2025 Updated]

You're looking for the real story behind Nokia Oyj's current strategy, and after two decades analyzing these giants, I can tell you it's a sharp pivot to B2B tech leadership, banking heavily on the AI supercycle. Forget the old phone days; the 2025 picture is about securing massive network deals, with net sales targeted between EUR 22.7 billion and EUR 24.1 billion, all while funding the next wave of innovation like 6G through a massive patent engine expected to drop EUR 1.1 billion in operating profit this year alone. With a solid EUR 3,001 million net cash position as of Q3 2025, they are positioning themselves as the essential partner for Communication Service Providers and Hyperscalers needing end-to-end secure connectivity. Dive into the canvas below to see exactly how they are structuring their key activities and resources to win this infrastructure race.

Nokia Oyj (NOK) - Canvas Business Model: Key Partnerships

You're looking at the critical alliances Nokia Oyj has forged to power its pivot toward the AI supercycle. These aren't just handshake agreements; they involve significant capital deployment and technology integration, which is how you gauge real strategic commitment in this sector.

Communication Service Providers (CSPs) like KPN and du for network deployment

Nokia Oyj continues to secure major infrastructure deals with tier-one operators. For instance, the agreement with Koninklijke KPN NV involves deploying an 800G-capable IP and optical network for the Netherlands' FabriQ initiative. This upgrade is set to support capacity exceeding 216 terabits per second (Tbps), a substantial leap from the current 48 Tbps capacity. Separately, the collaboration with UAE-based du focuses on delivering premium, self-optimizing 5G Advanced autonomous network slicing solutions for enterprise and consumer premium services. As of the end of Q2 2025, Nokia reported having 125 5G Standalone Core operator customers with 54 live deployments globally.

Hyperscalers (e.g., US-based) for optical networks and data center connectivity

The push into the hyperscaler segment is a major growth lever, evidenced by Nokia's strategic moves in optical transport. Nokia completed the $2.3 billion acquisition of US optical gear maker Infinera in March 2025 specifically to deepen its reach with webscalers. This investment is paying off; Optical Networks net sales jumped 15% in Q1 2025, driven by significant design wins with hyperscalers. Furthermore, in Q3 2025, Nokia announced a partnership with Nscale to become a preferred networking equipment vendor for their data center buildout. AI and Cloud customers accounted for 6% of Nokia Group's net sales at the group level in Q3 2025, rising to 14% within the Network Infrastructure segment.

Strategic co-innovation partners like NestAI for AI-powered defense solutions

Nokia is actively building out its defense capabilities through targeted alliances. The strategic partnership with NestAI, an European physical AI lab, is backed by a combined investment of €100 million from Nokia and Finnish sovereign investor Tesi. This capital infusion is intended to accelerate the development of AI-native platforms for unmanned systems and command-and-control (C2) solutions for defense and critical infrastructure.

Enterprise partners like E.ON for critical infrastructure modernization

Modernizing critical infrastructure is a key focus, as shown by the deal with E.ON SE. E.ON signed a five-year deal with Nokia to upgrade its mission-critical communications infrastructure for distribution system operators, starting in Germany. This new network, spanning IP routing, optical transport, and fixed broadband access, is projected to reduce energy consumption by up to 50% compared to the existing infrastructure. Enterprise sales, which include private 5G deals, reached a record 16% of Nokia's total revenue in Q2 2025.

Technology partners like NVIDIA for AI-RAN and 6G innovation

The alliance with NVIDIA is foundational to Nokia's 6G vision. NVIDIA invested $1 billion in Nokia, acquiring approximately 2.9% of the company, to integrate NVIDIA-powered AI-RAN products into Nokia's portfolio. This collaboration is designed to help CSPs deploy AI-native 5G-Advanced and 6G networks using platforms like the NVIDIA Aerial RAN Computer Pro (ARC-Pro). Analyst firm Omdia forecasts the AI-RAN segment will exceed $200 billion in cumulative sales by 2030.

Here's a quick look at the scale of these recent, high-profile commitments:

Partner Category	Partner Example/Focus	Key Financial/Statistical Metric
Strategic Co-Innovation	NestAI	Combined investment of €100 million
Technology/AI	NVIDIA	$1 billion equity investment from NVIDIA
Hyperscaler/Optical	Infinera Acquisition	Acquisition value of $2.3 billion (closed March 2025)
Enterprise	E.ON	Estimated energy consumption cut of up to 50%
CSP	KPN	Network capacity upgrade to over 216 Tbps

The shift in customer mix is clear: enterprise sales accounted for a record 16% of revenue in Q2 2025, while traditional telco sales dropped below 80%. The new long-term financial target announced in late 2025 targets comparable operating profit of EUR 2.7 to 3.2 billion by 2028.

You should track the progress of the NVIDIA ARC-Pro platform deployment, as that will be the clearest indicator of the AI-RAN revenue stream materializing. Finance: draft 13-week cash view by Friday.

Nokia Oyj (NOK) - Canvas Business Model: Key Activities

You're looking at the core engine room of Nokia Oyj, the activities that actually make the revenue and drive the future strategy, especially now that the market is pivoting hard toward AI-ready infrastructure. Honestly, it's a mix of deep, long-term science and immediate, large-scale integration.

Research and development (R&D) at Nokia Bell Labs for 6G and AI-native networks

The commitment to foundational research is massive, building on a legacy that includes the invention of the transistor. Nokia is doubling down on next-generation connectivity, with a significant new push announced in late 2025. This involves a planned multiyear investment of $4 billion in U.S. R&D and manufacturing, with approximately $3.5 billion earmarked specifically for U.S.-based R&D covering mobile, fixed access, IP, optical, and data center networking technologies. This new spending builds upon the $2.3 billion investment already tied to the Infinera acquisition earlier this year. For context on the scale, Nokia's R&D expense in the previous year, 2024, was €11.005 billion. The total investment in R&D since 2000 is stated to be over €150 billion. You can see the ongoing spend, as reported R&D expenses for the first half of 2025 reached €2.306 billion.

Nokia Bell Labs in New Jersey remains central to this, focusing on areas that support AI-focused network development, including automation, quantum-safe networking, and semiconductor design and testing.

Manufacturing and supply chain management for global network hardware

Managing the physical flow of hardware is critical, especially with ongoing geopolitical factors influencing supply chains. Nokia is actively working to de-risk and decarbonize this area. A key operational target is reaching 100% purchased electricity from renewable sources across all facilities, including own factories, by 2025. In terms of emissions reduction within the supply chain, final assembly supplier emissions were reduced by 15% compared to 2023 in 2024, and total supplier emissions (category 1) were down 28% year-over-year in 2024. The company is also directing capital toward domestic manufacturing, with $500 million of the new U.S. investment slated for facilities in Texas, New Jersey, and Pennsylvania. However, near-term risks like tariffs are present; Nokia expected a EUR 20 to 30 million impact to comparable operating profit in the second quarter of 2025 from current tariffs.

Here's a quick look at the environmental progress in operations as of 2024:

Metric	2024 Reduction vs. 2023	2024 Reduction vs. 2019 Baseline
Scope 1 and 2 Emissions	27%	76%
Final Assembly Supplier Emissions	15%	56%
Total Supplier Emissions (Category 1)	28%	77%

Software development for 5G Core, cloud-native solutions, and network automation

The shift to software and cloud-native solutions is a major growth driver, particularly within the Network Infrastructure segment. The Cloud and Network Services division, which handles software, enterprise tech, and managed services, showed strong momentum, growing 14% year-over-year in Q2 2025 on a constant currency and portfolio basis. For the first half of 2025, this segment grew 8%. The focus on IP networking, crucial for data center infrastructure supporting AI workloads, is seeing accelerated investment; Nokia plans to commit up to an additional €100 million in annual operating expenses to generate incremental net sales of €1 billion by 2028 from its IP network products. Furthermore, Nokia reports having 850 private mobile network customers, indicating success in enterprise wireless solutions.

Patent licensing and intellectual property (IP) management via Nokia Technologies

Nokia Technology Standards (formerly Nokia Technologies) provides a layer of predictable cash flow. For the full year 2025, Nokia expects approximately EUR 1.1 billion in operating profit from this division. While Q1 2025 saw a dip due to prior year licensing catch-ups, Q2 2025 saw the division grow operating profit, with net sales increasing by 3% year-over-year. The current annual contracted recurring net sales run-rate, excluding catch-up sales, sits at approximately EUR 1.3 billion. The mid-term goal is to grow this run-rate to between EUR 1.4 to 1.5 billion. You should note that more than €800 million in contracted revenue is already locked in annually through to 2030. The IP portfolio itself is substantial, comprising over 26,000 patent families.

Key licensing focus areas and figures include:

• Cellular technologies provide stable, long-term cash flow from the global smartphone market.
• Expanding WiFi licensing into the automotive industry, with agreements reached with seven major automakers.
• The portfolio is built on over €150 billion invested in R&D since 2000.

Integration of acquired assets, notably the Infinera optical networking business

The $2.3 billion acquisition of Infinera Corporation closed on February 28, 2025, creating a powerhouse in optical networks to meet AI and data center demands. The integration is a key activity, with the Infinera team joining Nokia's Optical Networks business unit. Nokia reaffirms its synergy target of over EUR 200 million in net comparable operating profit by 2027 from this deal. This acquisition is expected to be accretive to Nokia comparable operating profit and EPS in 2025. The combined Optical Networks and IP Networks businesses are strategically positioned for growth, targeting a compound annual growth rate (CAGR) of 10-12% between 2025 and 2028. Furthermore, Infinera had separately committed $456 million for two U.S. manufacturing sites receiving CHIPS Act incentives, which is now part of Nokia's broader investment plan.

The Network Infrastructure segment, which now includes the integrated optical business, reported 17% like-for-like revenue increase in Q4 2024 and grew 8% in Q2 2025.

Nokia Oyj (NOK) - Canvas Business Model: Key Resources

You're looking at the core assets Nokia Oyj holds as of late 2025. These aren't just line items; they are the engines driving future revenue streams, especially as the company navigates the AI era.

The intellectual property foundation is significant, with Nokia Technologies expecting to contribute approximately EUR 1.1 billion in operating profit for the full year 2025. This is the predictable cash flow from licensing, centered around standard-essential patents (SEP) for cellular technologies, where more than €800 million in contracted revenue is locked in annually through to 2030. Furthermore, Nokia's IP portfolio has expanded to over 26,000 patent families since 2020.

The R&D backbone remains Nokia Bell Labs, an institution with over a century of innovation history, pioneering everything from the transistor to current AI-driven advancements. This institution powers Nokia's solutions across fixed, mobile, and cloud networks.

The global network infrastructure portfolio is seeing commercial momentum, particularly in Optical Networks, which grew 19% in Q3 2025. The combined Optical Networks and IP Networks segment has a net sales Compound Annual Growth Rate (CAGR) target of 10-12% during the 2025-2028 period. The integration of Infinera is supporting this growth in Optical Networks.

Financially, the company maintains a strong liquidity position. As of Q3 2025, the net cash balance stood at EUR 3,001 million, available for strategic investments. This follows a quarter where free cash flow was positive EUR 429 million.

Here's a quick look at the key financial and portfolio metrics:

Resource Metric	Value (As of Late 2025 Data)	Context/Period
Nokia Technologies Operating Profit Expectation	EUR 1.1 billion	Full Year 2025
Net Cash Balance	EUR 3,001 million	End of Q3 2025
Q3 2025 Optical Networks Net Sales Growth (YoY)	19%	Q3 2025
2025-2028 Combined Optical & IP Networks Net Sales CAGR Target	10-12%	Long-term Target
Contracted Revenue Locked In Annually (Cellular Licensing)	More than €800 million	Through to 2030

Securing this advanced connectivity requires specialized human capital. The focus is heavily on engineering talent for secure, advanced connectivity, particularly in areas supporting 6G and AI-native software. Key skill sets being sought include:

• C++
• Python
• Java
• Data Science
• C Embedded
• Cybersecurity

The company has also been actively hiring hundreds of engineers to speed up 5G development, with specific focus on developing SoC (system on chip) integrated circuits.

Finance: draft 13-week cash view by Friday.

Nokia Oyj (NOK) - Canvas Business Model: Value Propositions

You're looking at the core promises Nokia Oyj is making to its customers as of late 2025, grounded in the numbers from their recent performance. This is what they are selling.

End-to-end secure, advanced connectivity for critical networks

Nokia Oyj is delivering the infrastructure backbone that powers critical operations. The focus here is on scale and reliability, especially as data demands surge.

The Network Infrastructure business group, which houses much of this, delivered 11% net sales growth in Q3 2025 on a comparable basis. This segment is expected to maintain a Compound Annual Growth Rate (CAGR) of 6-8% from 2025 to 2028. The company finished Q3 2025 with a solid net cash balance of €3.0 billion. That's the financial stability backing the promise.

AI-native networks and 6G leadership for future-proofing customer infrastructure

This is about building the next generation, designed from the ground up with intelligence. For operators, the value proposition includes tangible cost and performance improvements driven by AI integration.

According to a McKinsey 2025 study, telco operators expect not less than 20% cost savings across all business functions through AI transformation. Specifically for the network, AI-powered energy-saving features promise 10-20% RAN energy savings. For network issue resolution, intent-based cognitive automation can be up to 90% faster than manual methods. Nokia is accelerating this transition with a strategic partnership that includes a $1 billion investment from NVIDIA to advance AI-RAN technology. The long-term goal is clear: Nokia is targeting a comparable operating profit between €2.7 billion and €3.2 billion by 2028, driven by this AI-native focus.

High-capacity, energy-efficient optical and IP networks (e.g., 800G-capable)

The demand from hyperscalers and data centers for AI infrastructure is directly fueling growth in optical transport. The Optical Networks unit reported a 19% growth in Q3 2025 comparable net sales. This unit, alongside IP Networks, is targeted for an even faster growth rate of 10-12% CAGR through 2028.

Here's a look at the capacity leap they are enabling with their latest hardware:

Metric	Current/Previous State	New/Target State (e.g., KPN deployment)
Optical Network Capacity (Tbps)	48 Tbps	More than 216 Tbps
Enabled Customer Service Speed	Not specified	More than 10 gigabits per second
Optical Power per Bit (W/Gb)	5 W/Gb (20 years ago)	0.04 W/Gb (with latest 800G ZR/ZR+)

The latest 800G ZR/ZR+ pluggable technology is key to this efficiency.

Private wireless and industrial edge solutions for enterprise digitalization

Nokia Oyj is positioning itself as the leading Western supplier for enterprise private networks. The Cloud and Network Services division, which houses the private 4G/5G campus proposition, saw net sales increase 14% on a constant currency basis in Q2 2025.

The company maintained its leadership, finishing 2024 with approximately 850 private network customers in total. However, the strategic review concluded that the Enterprise Campus Edge business, which bundles private networks, generated approximately €900 million in net sales over the past 12 months, but with a gross margin of only 22 per cent and an operating loss of €100 million.

Guaranteed premium service levels via autonomous 5G network slicing

Delivering premium, self-optimizing services is a core value, demonstrated through specific operator collaborations. Nokia announced a collaboration with UAE-based operator du to deliver these premium services.

• The solution involves the first implementation of a groundbreaking 5G Advanced autonomous network slicing solution.
• This enables premium services across use cases like business-critical operations, gaming, XR, and AI applications.

Finance: draft 13-week cash view by Friday.

Nokia Oyj (NOK) - Canvas Business Model: Customer Relationships

You're looking at how Nokia Oyj keeps its most important customers engaged and how it structures those relationships to drive revenue, especially as the market shifts toward AI-driven networks. Honestly, the relationship structure is layered, moving from deep technical partnership to broad intellectual property management.

Strategic co-innovation model with key customers and partners.

Nokia Oyj made co-innovation a core strategic priority announced at its November 2025 Capital Markets Day, aiming to 'Grow by co-innovating with customers and partners.' This focus is heavily weighted toward the AI supercycle. For instance, the company is developing its AI-native networks and announced a new AI RAN center in Dallas to drive this forward. Furthermore, the acquisition of Infinera, completed in Q2 2025, is explicitly intended to accelerate growth strategy in data centers and bolster optical networks, showing a commitment to co-develop infrastructure with webscale customers.

• Strategic Priority: Grow by co-innovating with customers and partners.
• New AI RAN Center established in Dallas.
• Infinera acquisition bolsters data center and optical network capabilities.

Dedicated account management for large Communication Service Providers (CSPs).

The relationship with large CSPs remains central, though the mix is changing. While sales to CSPs declined 4% in Q2 2025, the Network Infrastructure business-which serves these mission-critical clients-still grew 8% on a reported basis in that same quarter. This suggests that while overall operator spending might be constrained, specific infrastructure upgrades are proceeding. The Cloud and Network Services division, which helps CSPs move to autonomous networks, claimed 920 customers as of Q2 2025, indicating a broad, managed relationship base beyond just the top-tier operators.

Consulting and professional services for network planning and deployment.

The structure for these services is embedded within the business group mandates. For example, the Mobile Networks segment historically provides products covering network planning, optimization, network deployment, and technical support services. Similarly, the Cloud and Network Services unit provides software and solutions that 'accelerate the journey of service providers and enterprises to autonomous networks,' which inherently involves significant professional services for deployment and integration. The overall goal is helping CSPs differentiate through optimizing networks.

Direct sales and long-term contracts for mission-critical infrastructure.

Direct sales are the engine for the Network Infrastructure segment, which targets CSPs, enterprises, and webscale customers with fixed access, IP routing, and optical transport. This business is positioned as the 'trusted western provider of secure and advanced connectivity,' which leans heavily on securing long-term, mission-critical contracts. The company targets 6-8% net sales Compound Annual Growth Rate (CAGR) for Network Infrastructure between 2025 and 2028, with a higher target of 10-12% for the combined Optical Networks and IP Networks units, reflecting confidence in these direct, long-term infrastructure sales.

Licensing agreements managed by Nokia Technologies.

Nokia Technologies manages the monetization of Nokia's intellectual property, and this unit is a highly profitable component of the customer relationship structure. The operating profit expectation for Nokia Technologies for the full year 2025 remains approximately EUR 1.1 billion. The contracted annual net sales run-rate increased to approximately EUR 1.4 billion by Q1 2025. You can see the financial weight of this relationship stream here:

Metric	Value (Late 2025 Data)
Nokia Technologies Full Year 2025 Operating Profit Expectation	Approximately EUR 1.1 billion
Contracted Annual Net Sales Run-Rate (Q1 2025)	Approximately EUR 1.4 billion
Nokia Technologies Q3 2025 Operating Profit	EUR 255 million
Nokia Technologies Q3 2025 Gross Margin	100%

These agreements are managed separately from the infrastructure sales, providing a steady, high-margin revenue stream based on the value of Nokia's patent portfolio. If onboarding takes 14+ days, churn risk rises, but for licensing, the risk is more about renewal timing and legal disputes.

Nokia Oyj (NOK) - Canvas Business Model: Channels

You're looking at how Nokia Oyj (NOK) gets its gear and services into customer hands as of late 2025. The story here is a clear pivot away from total reliance on the old guard of telecom operators.

Direct sales force to Communication Service Providers (CSPs) globally.

The traditional direct sales engine still targets Communication Service Providers (CSPs) globally, but their relative importance is shrinking. Back in 2019, CSPs made up about 85% of Nokia's corporate revenue, but by Q2 2025, sales to these traditional mobile operators had fallen below 80% of total revenue. This shift reflects the broader market trend where CSPs are slowing their 5G build-outs or optimizing existing networks. Still, the core relationship remains vital, especially for large infrastructure deals; for instance, in Q2 2025, the Mobile Networks unit still accounted for 38% of total sales, even with its decline.

Direct sales to large Enterprises and Hyperscalers.

This is where the growth story is unfolding, often through dedicated direct sales teams focused on high-value, non-telco accounts. Enterprise sales hit a record 16% of total revenue in Q2 2025. Hyperscalers, in particular, are a massive channel driver for the Network Infrastructure unit, which overtook Mobile Networks in revenue generation in Q2 2025. For example, hyperscaler orders alone accounted for 5% of Nokia's net sales in Q2 2025, translating to roughly 225 million Euros in that quarter. The company is actively aligning its focus, as seen by the strong growth in North America Enterprise sales, which surged 27% year-over-year in one reported period due to hyperscaler demand.

Here's the quick math showing the customer mix evolution:

Customer Segment	Q4 2019 Revenue Share (Approx.)	Q2 2025 Revenue Share (Approx.)
Communication Service Providers (CSPs)	Around 85%	Below 80%
Enterprises (Including Hyperscalers)	Over 5%	Record 16%

What this estimate hides is the aggressive investment in the Network Infrastructure unit, bolstered by the Infinera acquisition, specifically targeting these non-CSP buyers.

Nokia Defense incubation unit for government and defense sector sales.

Nokia Oyj is pursuing government and defense sales through strategic partnerships, which act as a specialized channel. You see this evidenced by the 5G.MIL partnership announced with Lockheed Martin and Verizon, focusing on military-grade 5G solutions. While specific revenue figures for a dedicated defense incubation unit aren't broken out, this collaboration shows a concrete channel strategy for mission-critical networks outside the typical CSP sales motion.

System integrators and channel partners for private wireless and smaller enterprise deals.

For broader enterprise reach, especially in private wireless, system integrators and channel partners are key multipliers. This channel supports the push into verticals valuing mission-critical networks. By the start of 2025, Nokia was reporting strong growth in private wireless, having secured more than 710 customers. These partners help scale deployment and integration for smaller or more geographically dispersed enterprise deals that the core direct sales force can't cover efficiently.

Network as Code platform for developer access to network APIs.

The Network as Code (NaaC) platform is a modern, software-driven channel for monetization and ecosystem engagement. It simplifies network complexities by exposing developer-friendly interfaces, abstracting the underlying tech. As of late 2025, this ecosystem has grown to include over 60 partners, spanning CPaaS platforms, system integrators, and software vendors, following major collaborations like the one with Airtel. Juniper Research has ranked Nokia as the established leader in the global network API market, validating this channel approach. Even earlier in 2025, the platform already had over 50 customers using it.

The platform's growth trajectory is clear:

• Platform Customers: Over 50 (March 2025)
• Ecosystem Partners: Over 60 (Late 2025)
• Market Position: Established Leader (Juniper Research)

This platform acts as a two-sided ecosystem, connecting developers directly to network capabilities, which is a defintely new way to drive revenue from network assets.

NaaC Metric	Value	Context/Date
Global Ecosystem Partners	Over 60	Late 2025
Platform Customers	Over 50	March 2025
Market Ranking	Established Leader	2025

Finance: draft 13-week cash view by Friday.

Nokia Oyj (NOK) - Canvas Business Model: Customer Segments

The customer base for Nokia Oyj is segmented across several high-value areas, with Communication Service Providers (CSPs) historically forming the core, though growth drivers are shifting.

For the third quarter of fiscal year 2025, Nokia Oyj reported total net sales of €4.83 billion. The distribution across the primary operating segments, which largely map to customer types, shows the relative scale:

Segment (Primary Customer Focus)	Q3 2025 Reported Net Sales (Millions EUR)	Q3 2025 YoY Growth (Comparable)
Network Infrastructure (CSPs, Hyperscalers)	1,953	11%
Mobile Networks (CSPs)	1,842	4%
Cloud & Network Services (CSPs, Enterprises)	645	13%
Nokia Technologies (Licensing)	391	14%

Communication Service Providers (CSPs) are the largest segment, driving the bulk of the revenue in Mobile Networks and significant portions of Network Infrastructure. The company re-entered the VodafoneThree network as a major radio supplier commercially. Furthermore, Nokia achieved the #1 market share position in Voice Core (Dell'Oro excl. China) in the first half of 2025, reflecting deep operator integration.

Hyperscalers and large data center operators represent a growing, high-value subset within the Network Infrastructure segment, particularly driving Optical Networks growth. As of Q3 2025, AI and Cloud customers accounted for 6% of total group sales. This specific customer group represented 14% of Network Infrastructure sales in Q3 2025. In Q2 2025, Nokia generated 5% of sales from hyperscalers. The company began shipping 800G ZR/ZR+ pluggables for data center interconnects to a major U.S. customer and announced a strategic partnership with Nscale to be a preferred networking equipment vendor for their data center buildout.

Large Enterprises, such as those in manufacturing and utilities, are key targets for private wireless solutions. As of Q2 2025, Nokia reported having 920 customers for its private wireless offerings. Enterprise net sales overall increased 15% on a constant currency and portfolio basis in Q2 2025.

The customer base for technology licensing, which indirectly involves consumer electronics manufacturers, is quantified by the run-rate of Nokia Technologies. The annual net sales run-rate for Nokia Technologies was approximately EUR 1.4 billion as of Q3 2025. For the full year 2025, Nokia Technologies is expected to deliver approximately EUR 1.1 billion of operating profit. In Q2 2025, the count of licensees was reported as 357.

The customer segments targeted by Nokia Oyj include:

• Communication Service Providers (CSPs) for 5G, 5G Core, and fixed access.
• Hyperscalers and large data center operators for optical and IP networking.
• Large Enterprises for private wireless and industrial edge deployments.
• Government and Defense organizations for secure solutions.
• Consumer electronics manufacturers indirectly through technology licensing.

Nokia Oyj (NOK) - Canvas Business Model: Cost Structure

You're looking at the cost base for Nokia Oyj as they navigate the shift from traditional 5G to AI-native networks. The cost structure is heavily weighted toward future technology, but external macro factors are creating near-term pressure.

High R&D expenditure to lead in AI-native networks and 6G.

Nokia Oyj is definitely spending heavily to maintain its edge in next-generation technology. Research and Development expenses for the twelve months ending September 30, 2025, stood at $5.098B. Looking at the quarterly spend, Q3 2025 reported R&D expenses were EUR 1,174 million, which was a 5% increase year-over-year for the Q1-Q3 2025 period compared to the prior year's cumulative spend. For context, Q1 2025 reported R&D was EUR 1,145 million.

• R&D expenses (LTM ending Sept 30, 2025): $5.098B.
• R&D expenses (Q3 2025 Reported): EUR 1,174 million.
• R&D expenses (Q1-Q3 2025 Cumulative Reported): EUR 3,479 million.

Cost of Goods Sold (COGS) for hardware manufacturing and supply chain logistics.

While COGS isn't explicitly stated, we can look at the gross margin, which directly relates to the cost of sales. For Q2 2025, the comparable gross margin was 44.7%, meaning the implied COGS was about 55.3% of comparable net sales for that period. By Q3 2025, the comparable gross margin had tightened slightly to 44.2%. This reflects the costs associated with manufacturing and getting the hardware where it needs to go, plus the impact of product mix.

Metric	Q2 2025 (Reported)	Q3 2025 (Comparable)
Gross Margin	43.4%	44.2%
Implied COGS %	56.6%	55.8%

Operating expenses impacted by currency and tariffs, a EUR 230 million headwind in 2025.

External factors are hitting the bottom line hard this year. Nokia Oyj lowered its full-year 2025 comparable operating profit guidance specifically because of these headwinds. Currency fluctuations, driven by a weaker USD, are creating an approximately EUR 230 million negative impact on the 2025 outlook. This total includes EUR 140 million operationally and EUR 90 million from non-cash venture fund currency revaluations. On top of that, the current tariff landscape is estimated to impact full-year operating profit by another EUR 50 million to EUR 80 million.

Integration and restructuring costs related to the new two-segment operating model.

The company is incurring costs related to ongoing efficiency drives, which set the stage for the 2026 structural change. For the ongoing cost savings program, restructuring and associated charges were reported at EUR 250 million in Q2 2025. The associated cash outflows for this program were reported as EUR 400 million in Q2, later updated to EUR 350 million for the Q3 period. These charges are explicitly noted as not including Infinera-related synergies, so you should factor in additional, unquantified integration expenses.

Sales, General, and Administrative (SG&A) costs, with a long-term reduction target.

SG&A, or Selling, General and Administrative expenses, is a key area for operational discipline. In Q3 2025, reported SG&A was EUR 729 million. For the first nine months of 2025 (Q1-Q3), reported SG&A reached EUR 2,193 million, up 5% year-over-year. The big news here is the long-term goal for centralized costs. Nokia plans to reduce Group Common and Other operating expenses to EUR 150 million by 2028, a significant drop from the current run-rate of roughly EUR 350 million.

• SG&A (Q3 2025 Reported): EUR 729 million.
• SG&A (Q1-Q3 2025 Cumulative Reported): EUR 2,193 million.
• Long-term Target for Group Common/Other OpEx (by 2028): EUR 150 million.

Finance: draft 13-week cash view by Friday.

Nokia Oyj (NOK) - Canvas Business Model: Revenue Streams

You're looking at the money Nokia Oyj is bringing in, and it's clear the revenue streams are heavily weighted toward the foundational network components that keep the world connected. Honestly, the story here is the shift in momentum between the core business units as of late 2025.

The total revenue picture for the first nine months of 2025 shows the scale of the operation, with reported net sales reaching EUR 13,764 million for the period of January through September 2025. For the full fiscal year 2025, Nokia Oyj is guiding for a comparable operating profit in the range of EUR 1.7 billion and EUR 2.2 billion.

Here's a breakdown of the key revenue-generating segments and their recent performance, which maps directly to your outline points:

• Network Infrastructure sales: This is the clear growth engine, showing strong momentum. In the third quarter of 2025, comparable net sales for this segment grew by 11% year-over-year.
• Mobile Networks sales: This remains the largest component, expected to be largely stable. Q3 2025 comparable net sales showed growth of 4%.
• Cloud and Network Services sales: This software and services area is also growing. Comparable net sales increased by 13% in Q3 2025.
• Technology licensing revenue: Nokia Technologies is a high-margin contributor. The operating profit expected from this patent portfolio for the full year 2025 is approximately EUR 1.1 billion.

To give you a clearer picture of the segment contribution based on the latest reported quarter, here's how the Q3 2025 reported net sales stacked up:

Revenue Stream Segment	Q3 2025 Reported Net Sales (EUR million)	Q3 2025 YoY Change (Reported)
Network Infrastructure	Data not explicitly separated in Q3 table	12% increase in overall net sales driven by this segment's strength
Mobile Networks	Data not explicitly separated in Q3 table	4% comparable growth
Cloud and Network Services	Data not explicitly separated in Q3 table	13% comparable growth
Nokia Technologies	Data not explicitly separated in Q3 table	14% comparable net sales growth

The strength in Network Infrastructure is particularly concentrated. For instance, the Optical Networks unit within that segment surged by 19% in Q3 2025, largely fueled by spending from AI and Cloud customers. This is the concrete evidence you need to see the AI supercycle translating directly into revenue for Nokia Oyj.

The Technology Standards group, which houses the patent licensing, is also showing strong commercial momentum. The contracted annual net sales run-rate from further deals signed in Q1 2025 reached approximately EUR 1.4 billion.

If you look at the Q1 2025 results, you can see the underlying segment performance before the Q3 acceleration: Network Infrastructure grew 11%, Cloud and Network Services grew 8%, and Mobile Networks grew 2%, all on a constant currency and portfolio basis.

The key takeaway for your analysis is the expected growth profile for the remainder of 2025, which remains unchanged operationally despite currency and tariff headwinds:

• Network Infrastructure: Continue to expect strong growth.
• Cloud and Network Services: Continue to expect growth.
• Mobile Networks: Continue to expect largely stable net sales on a constant currency and portfolio basis.

Finance: draft 13-week cash view by Friday.