NokiaOnlines - The third quarter of 2025 has shown strong performance for major players in the telecommunications infrastructure sector, with Nokia, Ericsson, and CommScope all reporting results that exceeded expectations. This positive trend is fueled by the burgeoning AI supercycle and the continued global expansion of 5G networks.

Nokia's Solid Growth and AI Focus

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Nokia Corporation announced a 9% year-over-year increase in comparable net sales for Q3 2025. All business segments contributed to this growth, with the Optical Networks division seeing a remarkable 19% surge. The company has also raised its full-year operating profit outlook. President and CEO Justin Hotard highlighted that "The AI supercycle is accelerating demand for providers of advanced and trusted connectivity. Nokia is uniquely positioned to be a leader in this market." The company reported that AI and Cloud customers accounted for a significant portion of its sales. Nokia's recent acquisition of Infinera is expected to further accelerate its AI-focused strategy.

#### Network Infrastructure Strength

Nokia's Network Infrastructure unit demonstrated robust growth, with net sales increasing by 11%. This segment, along with Cloud and Network Services, which grew by 13%, and Mobile Networks, which grew by 4%, collectively showcase Nokia's diversified revenue streams. The company's strategic focus on AI and cloud technologies is clearly paying off.

#### Future Outlook and Dividends

Nokia plans to share its strategy to "unlock the full potential" of its portfolio at its Capital Markets Day. The Board of Directors also approved a dividend of €0.03 per share. Looking ahead, Nokia aims for a comparable operating profit of €2.7–€3.2 billion by 2028, with a 6%–8% compound annual growth in net sales for its Network Infrastructure segment during 2025–2028.

CommScope's Impressive Turnaround

CommScope has reported an outstanding second quarter of 2025, with net sales soaring by 31.7% year-over-year to $1.39 billion. Non-GAAP adjusted EBITDA saw a significant improvement of 79% year-over-year. The company has raised its 2025 adjusted EBITDA guidance. President and CEO Chuck Treadway noted that "We are well positioned for future growth." The company is also proceeding with the divestiture of its CCS business to Amphenol, expected to close in Q1 2026, which will generate approximately $10.5 billion in cash.

#### Segment Performance

The Connectivity and Speed (CCS) segment led the growth, with net sales increasing by 20.2%, driven by a strong performance in the Data Center business. RUCKUS also saw a notable increase in net sales of 46.5%, while the Access Network Solutions (ANS) segment grew by 65.0%. CommScope's focus on high-demand areas like home broadband and enterprise Wi-Fi is yielding positive results.

#### Financial Health and Innovation

CommScope's adjusted EBITDA as a percentage of net sales increased to 24.3% in Q2 2025, up from 17.9% in the prior year. The company has demonstrated its commitment to innovation, recently launching the RUCKUS MDU suite with AI and Wi-Fi 7 capabilities, and setting a new speed record with DOCSIS 4.0 technology.

Ericsson's Stabilization and Strategic Focus

While specific Q3 2025 earnings for Ericsson were not detailed in the provided snippets, broader reports indicate a market stabilization and strategic advancements. Ericsson reported a strong Q4 2024, with a return to Networks sales growth, supported by robust performance in North America. President and CEO Börje Ekholm highlighted the momentum in programmable networks and increasing customer recognition of network API benefits. The company is also advancing in 5G evolution through trials with Orange France, focusing on energy efficiency and AI-native automation. Ericsson's acquisition of Vonage further solidifies its commitment to the enterprise sector.

#### Network and Enterprise Solutions

Ericsson's Networks segment saw stabilization, with growth in North America being a key driver. The enterprise segment is also a strategic focus, evidenced by acquisitions and a multi-channel go-to-market strategy similar to that of major IT players. The company's continuous innovation in areas like 5G Advanced software and network APIs positions it well for future growth.

#### Future Growth Drivers

Ericsson is emphasizing programmable networks and network APIs, which are becoming increasingly important for enterprises. The company's strategic investments and focus on innovation in 5G and beyond are crucial for navigating the evolving telecommunications landscape.

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