Nokia's Ambitious 2028 Bet: Doubling Operating Profit While Reshuffling the Deck

Nokia just dropped a bold play—the telecom giant is gunning for €2.7-3.2 billion in comparable operating profit by 2028, nearly 60% jump from the €2.0 billion it pocketed in the last 12 months. That’s a far cry from the old playbook of “grow faster than the market” and “maintain 13%+ margins.”

The Numbers That Matter

Revenue trajectory: Nokia targets 6-8% net sales CAGR (compound annual growth rate) through 2028. But here’s the kicker—Optical and IP Networks are expected to gallop at 10-12% CAGR, carrying much of the weight.

The shift signals Nokia is ditching vague targets for hard profit commitments. Whether it sticks the landing depends on execution in a market where 5G infrastructure and optical networking are still heating up.

The Restructuring Play

Meanwhile, Nokia’s reshuffling its organizational DNA starting January 1, 2026. Two primary segments replace the old structure:

Network Infrastructure (led by David Heard)—bundles Optical Networks, IP Networks, and Fixed Networks into one powerhouse.

Mobile Infrastructure (interim lead Justin Hotard)—merges Core Networks, Radio Networks, and Technology Standards (formerly Nokia Technologies) under one roof.

It’s a consolidation move designed to eliminate silos and sharpen focus. Q1 2026 financials will reflect the new structure—so watch that transition closely. For investors, the real test is whether this restructuring actually unlocks the profit growth Nokia is promising or just reshuffles the existing deck.