Nokia's profit prediction for 2025 is down by $300 million
Who's to blame for this – tariffs? Or the weak dollar?
As you very well know, Nokia doesn't make phones anymore – which will be a cruel, mind-blowing fact to a time traveler from the year 2000. But the company doesn't make that much profit as well – at least, not as much as previously projected. Nokia had to lower its full-year 2025 profit forecast by approximately $300 million.
Simply put, Nokia builds the tech that powers the internet and mobile networks. In 2025, it's focused on helping phone carriers, big cloud companies, and businesses with 5G, fiber, and data center infrastructure. Nokia also works with factories, airports, and other industries to bring them private wireless networks. The company recently bought a firm called Infinera to boost its fiber and optical networking business, especially in North America.
The company also makes money by licensing its patents to phone makers and other tech companies. It holds thousands of patents for things like 5G and Wi-Fi.
Is the weaker US dollar and (or) growing pressure from trade tariffs to blame here? Certainly, according to new CEO Justin Hotard, who said the dollar's decline hurt both day-to-day operations and the value of Nokia's investment funds.
The announcement came during its Q2 earnings release, where the company said it now expects operating profit to land between $1.9 billion and $2.5 billion – down from the earlier range of $2.2 billion to $2.8 billion.
Adding to the pressure are tariffs tied to US trade policies. Although the Trump administration's new tariffs on European goods are not expected to take effect until August 1, Nokia is already feeling the impact. Hotard noted that even the threat of additional tariffs has been enough to disrupt business.
So, Q2 results fell short of expectations. Nokia reported $267 million in profit and net income of just $94 million from continuing operations – both significantly down from the same quarter last year ($435 million). Following the earnings news, Nokia's stock dropped nearly 4%, which is not a small number.
Maybe Nokia should start making smartphones again.
Where does the money come from?
Simply put, Nokia builds the tech that powers the internet and mobile networks. In 2025, it's focused on helping phone carriers, big cloud companies, and businesses with 5G, fiber, and data center infrastructure. Nokia also works with factories, airports, and other industries to bring them private wireless networks. The company recently bought a firm called Infinera to boost its fiber and optical networking business, especially in North America.
What's the 2025 forecast?
Is the weaker US dollar and (or) growing pressure from trade tariffs to blame here? Certainly, according to new CEO Justin Hotard, who said the dollar's decline hurt both day-to-day operations and the value of Nokia's investment funds.
Our profitability was impacted by currency fluctuations, particularly the weaker US dollar, which was both an operational headwind and a headwind in our venture fund.
– Nokia CEO Justin Hotard, July 2025
Adding to the pressure are tariffs tied to US trade policies. Although the Trump administration's new tariffs on European goods are not expected to take effect until August 1, Nokia is already feeling the impact. Hotard noted that even the threat of additional tariffs has been enough to disrupt business.
So, Q2 results fell short of expectations. Nokia reported $267 million in profit and net income of just $94 million from continuing operations – both significantly down from the same quarter last year ($435 million). Following the earnings news, Nokia's stock dropped nearly 4%, which is not a small number.
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