Lenovo Group has reported a robust start to the fiscal year 2025/26, achieving double-digit growth in both revenue and profit. The results were driven by its hybrid AI strategy, increased investment in innovation, and operational efficiency across global markets.
Strong financial performance and market share gains
For the quarter ended 30 June, Lenovo’s revenue rose 22% year-on-year to US$18.83 billion, while net income surged 108% to US$505 million. On a non-HKFRS basis, which excludes certain non-cash items, net income increased 22% to US$389 million. Basic earnings per share climbed to 4.12 US cents.
All major business segments posted double-digit revenue growth. The PC business delivered its highest year-on-year revenue growth in 15 quarters and achieved a record global market share of 24.6%. Non-PC revenue accounted for 47% of total revenue, up slightly from a year ago. Growth was consistent across all sales regions.
Chairman and CEO Yuanqing Yang said the results demonstrated the company’s resilience despite tariff volatility and geopolitical challenges. “Looking ahead, we will continue to firmly execute our hybrid AI strategy towards the vision of Smarter AI for all, relentlessly drive innovation in personal AI and enterprise AI products and solutions and consistently strengthen our operational competitiveness so that we can realise sustainable growth and profitability improvement,” he said.
Business unit highlights
The Intelligent Devices Group (IDG) recorded revenue of US$13.5 billion, up nearly 18% year-on-year. PCs and smart devices grew 19%, supported by strong demand across all geographies and high-margin segments, delivering an operating profit above 8%. AI PCs accounted for more than 30% of total shipments, with Lenovo holding a 31% global share in the Windows AI PC segment. Smartphone revenue rose over 14% to US$2.2 billion, with Motorola achieving the top position in the global foldable phone market outside China.
The Infrastructure Solutions Group (ISG) posted a 36% increase in revenue to US$4.3 billion, driven by its dual strategy targeting cloud service providers and enterprise/SMB customers. AI infrastructure revenue more than doubled, and liquid cooling solutions saw 30% growth. While short-term profitability was affected by investment, ISG aims to expand market reach, enhance its SMB business model, and continue AI-focused innovation.
The Solutions and Services Group (SSG) reported its 17th consecutive quarter of year-on-year growth, with revenue rising 20% to US$2.3 billion and an operating margin exceeding 22%. Managed services and “as-a-Service” offerings performed strongly, with TruScale Infrastructure-as-a-Service signings achieving triple-digit growth.
ESG achievements and global recognition
Lenovo’s latest Environmental, Social and Governance Report highlighted progress towards its 2030 emissions reduction goals and its long-term target of achieving net-zero greenhouse gas emissions by 2050. The company continues to integrate recycled materials into its products and offer sustainability services to customers. Its efforts have earned accolades from EcoVadis, MSCI, CDP, and the Hong Kong Institute of Certified Public Accountants.
The company was ranked eighth in Gartner’s Top 25 Global Supply Chain and climbed 52 places on the Fortune Global 500 list to 196th overall, its highest ranking in the technology sector to date.
