According to the technology giant, the tariffs imposed by the US could result in some “short-term disruption”.
In its Q1 interim results, Nokia reported a profit of €156 million ($176.9 million). Meanwhile, sales totalled €4.39 billion, a 3% decline compared with the same period last year.
However, excluding the impact of licensing deals signed in the previous year, sales increased by 7%, the company revealed.
A one-off charge of €120 million in its mobile networks division also reduced its profit margins.
Meanwhile, Cloud and Network Services saw an 8% increase in net sales, with Nokia securing additional contracts from AT&T, Boost Mobile, Ooredoo Qatar and Telefónica.
Nokia also reaffirmed its annual outlook, which includes the acquisition of Infinera, but said that reaching the upper end of the operating profit range will be more difficult than previously anticipated.
Nokia president and CEO, Justin Hotard, said: “We are not immune to the rapidly evolving global trade landscape; however, based on early customer feedback, I believe our markets should prove to be relatively resilient.
“We will continue to utilise the flexibility of our global manufacturing network to minimise the impact of the evolving tariff landscape.”
He added: “Based on what we see today, we currently expect a EUR 20 to 30 million impact to our comparable operating profit in the second quarter from the current tariffs. Given the lack of visibility, we have not taken an assumption related to tariffs in the second half of 2025.”
This comes as the telecoms giant announced a multi-year strategic extension of its partnership with T-Mobile in the US, in a bid to expand its 5G network coverage.
As a result, Nokia will supply its AirScale Radio Access Network (RAN) portfolio, AI-based solutions, hardware, software, maintenance and support services to improve T-Mobile’s performance.
Hotard added: “This new agreement strengthens our deep partnership with T-Mobile US, and extends their leadership in delivering next-generation connectivity across the US By implementing Nokia’s latest AirScale RAN innovations, along with advanced virtualised and AI-RAN-based solutions, T-Mobile will unlock premium 5G performance for their customers.
“I’m excited to continue our partnership to shape the next chapter of mobile connectivity in the US."
T-Mobile president of technology, Ulf Ewaldsson, concluded: “T-Mobile’s nationwide standalone 5G network has solidified our global leadership by delivering tangible benefits to our customers.
“This new agreement with Nokia will further enhance our current network capabilities as we strengthen our journey supercharged with 5G Advanced, laying a robust foundation for future innovation.”
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