Nokia Targets €3.2 Billion Profit by 2028 with AI Focus

Nokia is shifting its strategic focus towards artificial intelligence (AI) to enhance profitability, targeting an annual operating profit of between €2.7 billion and €3.2 billion by 2028. This initiative is part of the company’s broader strategy to streamline its operations and improve execution by simplifying its structure, reducing its business units to just two.

In recent years, Nokia has been navigating a challenging landscape in the technology sector, working to re-establish itself as a significant player. The company has undergone significant leadership changes, with its third CEO since April 2025 now at the helm. This transition reflects Nokia’s commitment to adapting its business model to current market demands.

Financially, Nokia presents a mixed picture. The company reports stable gross profits, but net income has been more variable. Currently, Nokia holds approximately $6.65 billion in cash and continues to generate positive free cash flow. Such financial stability is crucial as the company invests in AI and seeks to capture new growth opportunities.

Despite these positive indicators, Nokia faces several risks. A slowdown in telecom spending is a primary concern, as is fierce competition in the technology sector. Additionally, uncertainties in emerging growth areas pose challenges that could impact Nokia’s profitability.

This renewed focus on AI-driven network and mobile infrastructure aims not only to bolster profitability but also to position Nokia as a leader in the evolving tech landscape. As the company streamlines its operations and invests in innovative technologies, stakeholders will be watching closely to see how these efforts translate into financial success.

Looking ahead, Nokia’s ability to navigate these complexities will be vital. The company’s strategic realignment towards AI is ambitious, and while the potential rewards are significant, the path to achieving its financial targets will require careful execution and market adaptation. As Nokia embarks on this journey, its performance will serve as a barometer for the broader technology sector’s health.