# Nokia's Bold Pivot: New 2028 Profit Target Signals Strategic Restructuring

Nokia just dropped some major moves. The telecom giant is targeting €2.7-3.2 billion in operating profit by 2028, a 35-60% jump from the €2 billion it pulled in over the last 12 months. Plot twist: they're ditching their old playbook of chasing 13% margins and 55-85% free cash flow conversion.

Here's what's shifting:

**Growth targets:** 6-8% net sales CAGR through 2028, with optical and IP networks (the money-makers) gunning for 10-12% growth.

**The org chart reset:** Starting January 2026, Nokia is consolidating into two segments:
- **Network Infrastructure** (David Heard leading): Optical Networks, IP Networks, Fixed Networks bundled together
- **Mobile Infrastructure** (Justin Hotard interim): Core software, radio networks, and tech standards (formerly Nokia Technologies)

The move looks strategic—betting big on optical/IP while streamlining the mobile side. Whether they hit those numbers depends on execution, but the ambition is clear. Full reorg kicks in Q1 2026 reporting.

Worth watching if you're tracking telecom infrastructure plays.