Nokia (NOKIA) Nokia Oyj Optical Fiber Communication Conference 2026 summary

Opening remarks and context

• Executive briefing highlighted the completion of a major acquisition and the integration of two leading optical technology teams.

• Noted significant increases in optical and cloud/hyperscale business, achieving top market share.

• Major investments in R&D and fab capacity expansion, supported by government initiatives.

• Vertical integration and expanded manufacturing capabilities are central to meeting rising demand.

• 2025 proforma revenue for Optical Networks reached €3.2bn, with leading positions in IP and Fixed Networks.

Key achievements and business growth

• Achieved 14% growth in optical business and 36% increase in AI/cloud business, driven by the Infinera acquisition and launch of 800G coherent pluggables.

• Expanded fabrication and packaging capabilities, securing #1 market share in optical networks outside China in Q4 2025.

Industry trends and technology shifts

• Market is shifting toward pluggable-based solutions, cannibalizing embedded solutions except for high-end and subsea use cases.

• Demand for lower power, higher capacity, and operational simplicity is driving innovation.

• Data center power consumption is projected to reach 4% of global power by 2030.

• Global AI infrastructure spending projected to reach $2.5tn with a 44% CAGR over the next five years.

• AI-driven bandwidth growth expected at 23% CAGR for global WAN and 65% CAGR for intra-data center capacity.