Nokia has unveiled a sweeping new strategy aimed at positioning the Finnish telecom equipment provider to lead the AI-driven transformation of global networks.

Announced at its Capital Markets Day 2025, the plan includes a streamlined operating model, fresh long-term financial targets, new strategic KPIs, and changes to its leadership team.

Beginning 1 January 2026, Nokia will reorganize into two core operating segments: Network Infrastructure and Mobile Infrastructure. Network Infrastructure, led by David Heard, is expected to benefit from global AI and data center expansion. The Mobile Infrastructure segment will be overseen by CEO Justin Hotard on an interim basis and will focus on AI-native networks and 6G.

With the simplified organizational structure, Nokia targets to grow its annual comparable operating profit to a range of EUR 2.7 to 3.2 billion by 2028, surging from the EUR 2.0 billion generated in the last 12 months (Q4’24-Q3’25).

President and CEO Hotard said, “Nokia changed the world once by connecting people — and will again by connecting intelligence,” emphasizing the company’s ambition to power the emerging AI supercycle.

Nokia also appointed Raghav Sahgal as chief customer officer, while several non-core units will transition into a newly created Portfolio Businesses segment.