Nokia's Microsoft Partnership Puts Focus on AI-Driven Network Automation

Nokia has strengthened its long-standing partnerships with Microsoft and other companies to focus on AI-driven network automation, high-capacity optical transport, secure defense communications, and DDoS protection. These collaborations highlight Nokia's efforts to turn its data, automation, and security capabilities into repeatable solutions that can be scaled across various markets.

The partnership between Nokia and Microsoft ties Nokia's data products more closely into AI workflows targeting higher-margin software and services. This collaboration is particularly relevant for near-term catalysts as it addresses Nokia's underpenetration in cloud and AI-rich network domains.

Nokia's Data Suite can be integrated with Microsoft Fabric, shortening data preparation time and making AI-based automation projects more practical for operators relying on Microsoft tooling. This creates a clearer path for use cases such as automated root cause analysis, VoNR assurance, and predictive maintenance, which align with the push toward higher-margin software and recurring services.

Nokia's analyst storyline points to €23.5b revenue and €2.6b earnings by 2029, based on assumptions of 4.8% yearly revenue growth and an increase in earnings of about €1.9b from €702m today. However, some analysts project even higher figures, such as €26.1b revenue and €3.5b earnings by 2029.