Prime Highlights

• Nokia will reorganize into two main business units, Network Infrastructure and Mobile Infrastructure, starting January 1, 2026, to streamline operations and boost innovation.
• The company sets an ambitious long-term goal to raise comparable operating profit to €2.7–€3.2 billion by 2028, up from €2.0 billion over the past year.

Key Facts

• The Mobile Infrastructure segment will integrate Core Networks, Radio Networks, and Technology Standards, with CEO Justin Hotard overseeing it on an interim basis.
• Non-core operations generating €0.9 billion in sales and a €0.1 billion operating loss will be moved into a new Portfolio Businesses segment for long-term evaluation.

Background

Nokia announced a major reorganization on Wednesday. The company will split its operations into two main business units as it prepares for fast changes driven by artificial intelligence. Starting January 1, 2026, Nokia will operate through two segments: Network Infrastructure and Mobile Infrastructure. With this change, Nokia wants to simplify its operations, serve customers better, and speed up innovation for future networks.

The Finnish telecom equipment maker set a new long-term financial goal. It aims to reach a comparable operating profit of €2.7 billion to €3.2 billion by 2028. This marks a sharp increase from the €2.0 billion generated over the past twelve months. Nokia said the simplified business model will help support growth opportunities created by AI and expanding data center demand.

Justin Hotard, Nokia’s President and CEO, said the company is prepared to lead the shift toward intelligent networks. He will oversee the Mobile Infrastructure segment on an interim basis. The segment will combine the company’s Core Networks portfolio, Radio Networks portfolio and Technology Standards unit, with a focus on strengthening network technology leadership.

The Network Infrastructure segment will remain under the leadership of David Heard. It will focus on optical, IP and fixed network technologies, serving telecom operators and enterprise customers investing in AI-ready systems.

As part of the restructuring, Nokia will place several non-core operations into a new Portfolio Businesses segment. These units generated around €0.9 billion in sales last year and posted a €0.1 billion operating loss. The company will evaluate long-term options for these businesses.

Nokia also announced changes in its leadership, including naming Raghav Sahgal as Chief Customer Officer. The company will start reporting its results under the new structure in the first quarter of 2026.