Nokia reported first-quarter profits significantly below market expectations, with a warning that U.S. tariffs could temporarily affect its second-quarter earnings by an estimated €20-30 million. The company's comparable operating profit dropped to €156 million ($176.9 million), missing analysts' predictions of €243.83 million by 36%. Quarterly net sales totaled €4.39 billion, a 1% decrease year-on-year, and slightly below the expected €4.41 billion.
Despite losing market share to Nordic competitor Ericsson, Nokia has seen steady sales growth in North America, indicating a market recovery after years of weakness. However, comprehensive tariffs imposed by U.S. President Trump might reverse this trend, as companies could delay orders over price concerns.
The Finland-based company also announced the renewal of a multi-year strategic partnership with T-Mobile in the U.S. to expand the carrier's 5G network coverage. Nokia reaffirmed its performance outlook for the second half of the year, which includes the acquisition of Altran.
