Nokia’s Two-Pronged Push: AI-Fiber Rollout in Europe and Military-Grade Secure Networks

Nokia pursues AI-driven optical LANs for European enterprises via Lightera partnership, and military 5G/quantum-safe networks. Shares double in 2026 as Network Infrastructure revenue grows 12-14%.

Nokia is pursuing two sharply different but mutually reinforcing growth tracks — equipping European enterprises with optical networks tailored for artificial intelligence, and hardening communications for defence forces — as its shares hold near levels not seen in over a year. The strategy reflects a bet that the same underlying technologies will be demanded by corporate data centres and military command posts alike.

On the commercial side, the Finnish telecoms group has expanded its partnership with infrastructure specialist Lightera into Europe. The goal is to replace legacy copper and switched local?area networks with passive optical LANs running on Nokia’s PON technology, which covers GPON, XGS?PON and 25G?PON standards. The combined solution promises total cost of ownership savings of up to 50% compared with traditional architectures, alongside lower energy consumption, stronger security and easier scalability. Nokia will also provide consulting, commissioning and ongoing technical support.

Sylvain Rajaud, a Nokia executive, said the real catalyst is the shift in network requirements driven by AI workloads. Companies need infrastructure that is secure, deterministic and efficient — not a gradual upgrade but a fundamental architectural change. The Lightera tie?up positions Nokia as a partner for that transformation in Europe.

Meanwhile, at the CANSEC 2026 defence exhibition in Ottawa, Nokia is showcasing tactical 4G and 5G networks, quantum?safe encryption and digital backbones for military and critical?infrastructure customers. The offerings span optical, Ethernet, MPLS and IP layers, plus AES?256?level network encryption. Tactical nets are designed to carry live video, connect unmanned systems and support real?time situational awareness, where bandwidth matters far less than reliability and tamper protection.

A concrete European proof?point already exists: in March 2026, a consortium comprising COBBS BELUX, Anduril Industries and Nokia Belgium was announced to build systems for countering unmanned aerial vehicles. The solution will fuse data from radar, optical sensors, radio sources and acoustics into a single command?and?control picture to protect military sites and critical infrastructure.

The financial underpinnings of the defence push are visible in Nokia’s first?quarter results. Network Infrastructure net sales rose to €1.829 billion from €1.639 billion a year earlier, while its gross margin improved to 43.4% from 41.9%. Mobile Infrastructure revenue slipped to €2.495 billion from €2.573 billion, but its gross margin also increased, climbing to 48.5% from 44.2%. Nokia sees full?year 2026 like?for?like revenue growth of 12–14% in Network Infrastructure, with the IP and Optical Networks sub?segment alone expanding 18–20%.

The combination of the Lightera deal and the defence thrust has propelled Nokia’s shares dramatically higher. Since the start of 2026 the stock has more than doubled, gaining 136?% according to one metric and 141?% by another, depending on the exact date. It hit a 52?week high of €14.14 on Wednesday before pulling back. By Friday it was trading at €13.42, down about 2.3% from that peak, as the market digested the steep run?up and looked for hard orders.

Nokia’s guidance for the year calls for comparable operating profit of €2.0–2.5 billion, with capital expenditure of €900 million to €1.0 billion — partly to add manufacturing capacity for the growing Optical Networks business. While the CANSEC appearance has drawn attention, investors are waiting for tangible contract wins and rising segment revenues to validate the defence story financially. The Lightera partnership, by contrast, already has a clear commercial pathway and a defined cost?saving pitch to enterprises. Together, the two initiatives give Nokia a rare vantage point at the intersection of AI?driven enterprise modernisation and state?level security needs.