Nokia cut its 2025 profit forecast by $300 million

Finnish telecommunications company Nokia has revised downward its full-year operating profit forecast: it has been cut by $300 million amid a weaker dollar and pressure from trade duties.

The updated earnings range was $1.9 billion to $2.5 billion, down from an earlier forecast of $2.2 billion to $2.8 billion. The company said this following the release of its quarterly earnings results for the second quarter of 2025.

The company said the company’s quarterly earnings range was $1.9 billion to $2.5 billion.

The weakening dollar worsened the numbers

Nokia CEO Justin Hotard said the weakening US dollar was a key factor in the decline in profits. This impacted both day-to-day operations and the return on the investment portfolio.

Hotard said the weakening of the dollar was a key factor in the decline in earnings.

“Our profitability has been impacted by currency fluctuations, particularly the weakening of the U.S. dollar, which has been an impediment to both operations and our venture fund,” said Hotard.

The currency fluctuations resulted in the company missing out on some revenue, especially in dollar-denominated markets.

Trade duties are also under pressure

Additional pressure is being placed on businesses by U.S. trade policies. Although the new duties on European goods initiated by the Trump administration won’t officially take effect until August 1, Nokia is already feeling the impact. According to the company’s CEO, even waiting for these measures is disrupting business processes.

Main revenue is from network infrastructure and licenses

Nokia today specializes in mobile and Internet networking equipment. Customers include telecom operators, cloud providers and industrial enterprises. The company also builds private wireless networks for facilities such as factories and airports.

The recent acquisition of Infinera should strengthen Nokia’s position in the fiber optic and optical infrastructure segment, especially in the North American market. Another important area is licensing its own technology: Nokia holds thousands of patents, including for 5G and Wi-Fi solutions.

Nokia’s recent acquisition of Infinera should strengthen its position in fiber optic and optical infrastructure, especially in North America.

Second quarter report was weaker than forecast

Nokia recorded a profit of $267 million for the second quarter of 2025. Net income from continuing operations totaled $94 million – down significantly from $435 million a year earlier.

The company’s second-quarter earnings came in at $94 million, down from $435 million a year earlier.

After the report was released, the company’s stock price fell nearly 4%, which investors took as a worrying signal amid a general slowdown.

The Nokia cuts 2025 profit forecast by $300 million was first published on ITZine.ru.