Lenovo has reported its strongest quarterly performance to date for the second quarter of its 2025/26 financial year, driven by broad-based growth across all business groups and rising demand for AI-enabled devices and solutions. The company posted revenue of US$20.5 billion, an increase of 15% year-on-year, marking a new quarterly high for the Group. Adjusted net income rose 25% to US$512 million, pushing the adjusted net income margin to 2.5% as higher revenues helped lift profitability.
Lenovo said the results reflect the success of its long-term strategy and the progress it has made in its shift toward hybrid AI. The mix of AI-related revenue rose by 13 percentage points compared to a year ago and now accounts for 30% of total revenue. Growth was driven by high double-digit gains in AI servers and triple-digit expansion in AI PCs, AI smartphones, and AI services.
The company noted that the AI market is evolving into a more human-centred and enterprise-focused stage. As large language models become more commoditised, Lenovo expects rising demand for personalised AI experiences and private-domain deployments, creating new opportunities across devices, hybrid infrastructure, and tailored solutions. The Group said its ongoing investment in innovation and its Global/Local operating model place it in a strong position to capture these trends.
Chairman and CEO Yuanqing Yang said the company plans to continue investing in hybrid AI and personalisation. “Capitalizing on the AI democratization trend, and thanks to our clear strategy, operational excellence and relentless innovation, Lenovo delivered another quarter of record performance, while making important progress in both Personal AI and Enterprise AI. We will continue to leverage our unique Global/Local model to navigate uncertainties and capture the tremendous Hybrid AI opportunities, and in doing so not only deliver sustainable long-term returns to our shareholders, but also make AI truly personalized for every individual and every enterprise.”
Personal AI gains traction with growth in devices
Lenovo said its Personal AI strategy is advancing quickly as consumers seek greater customisation across their digital experiences. Its “One Personal AI, Multiple Devices” approach will expand further with the launch of the Lenovo Personal AI super agent at Tech World on 6 January 2026. The agent is designed to operate across wearables and ambient devices, learning user preferences and acting as a personalised AI companion.
The Intelligent Devices Group continued to be the core of this strategy. Revenue grew nearly 12% year-on-year to US$15.1 billion. Lenovo strengthened its lead in the global PC market, reaching a record 25.6% share. Profitability remained strong, supported by high-margin product segments, while AI PC momentum increased significantly.
AI PCs accounted for 33% of Lenovo’s total PC shipments, and the company now leads the Windows AI PC category with a 31.1% share. Motorola smartphones also achieved record shipment volumes during the quarter. AI device revenue rose 17 percentage points year-on-year to make up 36% of Lenovo’s overall device mix.
Enterprise AI expansion supported by hybrid infrastructure
Lenovo’s Enterprise AI strategy aims to help organisations convert data and institutional knowledge into practical, high-value outcomes. The Group said the shift from cloud-centric AI training to on-premises and edge inference is accelerating demand for AI-capable devices, solutions, and industry-specific applications.
The Infrastructure Solutions Group saw revenue increase 24% year-on-year to US$4.1 billion, supported by strong performance across both cloud service providers and enterprise SMB customers. Liquid-cooling solutions saw revenue surge 154% year-on-year, and the company expects continued improvements in profitability as it refines enterprise and SMB business models.
The Solutions and Services Group delivered its 18th consecutive quarter of year-on-year growth, with revenue rising 18% to US$2.6 billion. Operating margin climbed to more than 22%. Support services posted double-digit growth, and managed services together with projects and solutions now represent nearly 60% of total SSG revenue. Lenovo said its Hybrid AI Advantage framework, which combines its AI factory, AI service offerings, and library of repeatable AI solutions, is gaining traction across key verticals.
ESG progress and corporate milestones
Lenovo highlighted several achievements during the quarter. Its manufacturing facility in Monterrey, Mexico, was added to the World Economic Forum’s Global Lighthouse Network, marking its second site to receive the distinction. ESG ratings improved across major benchmarks, including CDP and S&P Global, while the company maintained an AAA rating from MSCI ESG Ratings for the fourth consecutive year.
The Group was also recognised again in the Gartner Asia Pacific Supply Chain Top 10, ranking first for the fourth year in a row. It received workplace inclusion awards in the US, the UK, and Brazil, and continued its collaboration with the United Nations Industrial Development Organization on circular economy initiatives. Lenovo also joined the Coalition for Sustainable AI, a programme supported by the French government and UNEP.
