Nokia reported a 54% increase in comparable operating profit for Q1 2026, reaching €281 million, surpassing analyst expectations. This growth was primarily driven by its Optical Networks unit, which saw a 20% increase in the quarter. The company's shares rose 7% in Helsinki, marking a 63% increase in 2026. The surge in demand for fiber optic systems, essential for AI data centers, has positioned Nokia as a key supplier to cloud giants like Amazon, Google, and Microsoft. Nokia secured €1 billion in new orders from these hyperscaler customers in Q1, with sales to AI and cloud buyers now comprising 8% of total revenue, a 49% increase from the previous year. Nokia has raised its 2026 growth forecast for Network Infrastructure to 12-14%, anticipating the AI and cloud market to grow at 27% annually through 2028. The company's strategic focus on fiber optics, bolstered by the Infinera acquisition, is yielding significant returns.