HELSINKI, Oct 23, 2025 (BSS/AFP) - Finnish telecom maker Nokia on Thursday reported a boost in sales for the third quarter but saw its profits eroded by weaker margins.

Nokia reported an operating profit of 435 million euros ($505 million) for the period, down from 485 million euros last year, while net profit fell nine percent to 324 million euros.

Revenue rose nine percent to 4.8 billion euros, ahead of analysts' expectations, with "all business groups growing", chief executive Justin Hotard said in a statement.

Growth was particularly strong in the Optical Networks division, with growth of 19 percent "coming largely from AI & cloud customers".

But Hotard said Nokia's gross margins "declined 150 basis points compared to the prior year".

"This was due to the expected weaker software contribution in Mobile Networks" after a strong showing in the second quarter, "and product mix effects in Network Infrastructure", he said.

Nokia said it remained on track for a full-year operating profit of 1.7 to 2.2 billion euros.