Nokia has revised its full-year 2025 profit outlook, slashing it by $300 million as market headwinds take a toll. Once a giant in mobile phones, Nokia now powers the infrastructure behind 5G, fiber networks, and cloud services. 
However, recent economic turbulence and geopolitical pressures have taken a bite out of its bottom line.
The Finnish tech firm now forecasts an operating profit between $1.9 billion and $2.5 billion-down from the previously expected $2.2 billion to $2.8 billion. The revised figures came during the company’s Q2 2025 earnings report, where Nokia posted a net income of $94 million from continuing operations, a sharp drop from $435 million in Q2 2024.
According to CEO Justin Hotard, the weakening US dollar played a major role in the dip. “Currency fluctuations hit us on multiple fronts-both in our operating costs and the valuation of our venture investments,” he said.
Nokia’s role today is vastly different from its early 2000s mobile phone glory. Now, it builds the underpinnings of global internet infrastructure, supporting telecom giants, data centers, and private wireless networks for industries like manufacturing and transportation. A recent acquisition of Infinera, a U.S.-based optical networking company, is aimed at strengthening Nokia’s footprint in North America’s fiber market.
In addition to network infrastructure, Nokia generates revenue by licensing its vast portfolio of patents-especially in 5G and Wi-Fi technologies-to smartphone makers and other tech firms. But even that hasn’t fully shielded the company from ongoing global challenges.
Compounding the financial strain are looming U.S. trade tariffs on European imports. Although the new tariffs-proposed under the Trump administration-won’t kick in until August, the uncertainty has already rattled Nokia’s business operations.
Shares in Nokia fell nearly 4% following the earnings release. With pressures mounting, some might jokingly suggest the company return to making phones. But for now, Nokia is firmly rooted in the business of networks and infrastructure-just not at the profit levels it once hoped for.