Nokia reported its first-quarter profits well below market expectations on Thursday, citing the impact of U.S. tariffs. The company warned that these tariffs could disrupt its second-quarter profits by 20 to 30 million euros.
For the first quarter of 2025, Nokia’s comparable operating profit dropped to 156 million euros ($176.9 million), missing the average forecast of 243.83 million euros from analysts polled by LSEG. This marked a 36% shortfall.
Despite facing increased competition from Nordic rival Ericsson, Nokia has seen consistent growth in its North American sales, signaling a recovery after years of stagnation. However, the newly imposed tariffs by the U.S. government may dampen this growth, as businesses could delay orders over concerns about rising prices.
The Finland-based company also announced a multi-year extension of its partnership with T-Mobile in the U.S. The deal aims to expand T-Mobile’s 5G network coverage.
Nokia’s quarterly net sales totaled 4.39 billion euros, a 1% decline from the same period last year. This figure was slightly lower than the expected 4.41 billion euros.
Looking ahead, Nokia reaffirmed its full-year outlook, which now includes the planned acquisition of Infinera.
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