Telecoms giant Nokia has revealed it has lowered its comparable operating margin target to at least 13% by 2026 compared to a previous figure of 14%.

As a result, the company stated it still aims to achieve the previous target, however, due to thee current market conditions in its mobile networks business, it was considered wise to make the revision.

The company added other targets remain unchanged.

In a statement, the company said: “Nokia still sees a path to achieving the at least 14% comparable operating margin target but considering the current market conditions in Mobile Networks, this is deemed a prudent change.”

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The move follows Nokia taking a hit after mobile phone service provider AT&T chose Ericsson to build a telecom network, open radio access network (ORAN) which will cover 70% of its wireless traffic in the United States by late 2026.

At the time, Nokia CEO marked the news as “disappointing”, but added that it was “fully committed” to Open RAN and had a strategy to diversify its business and improve profitability.

Instead, the company announced that it has signed an agreement to acquire Fenix Group, which specialises in tactical 3rd Generation Partnership Project (3GPP) communications solutions for the defense communities.

The move is set to allow Nokia to offer a more comprehensive suite of solutions to its defense customers.

Nokia President of Mobile Networks Tommi Uitto added: The acquisition of Fenix Group is an important milestone in our strategy to grow our defense business.

“We are excited to welcome Fenix to the Nokia family, and we look forward to working together to create a more stable world with high-performance, secure, and reliable communications solutions.”