Lenovo posts record $26.9B quarterly revenue as AI demand accelerates

Lenovo Group reported record first-quarter revenue of $26.9 billion, up 43 percent year-on-year and beating the $22.4 billion consensus estimate.

"Following Lenovo's best year in history, we have now delivered our strongest quarter ever — with growth accelerating, profitability further improving, and AI emerging as a clear growth engine across every business group," Chairman and CEO Yuanqing Yang said.

Adjusted net income rose 176 percent year-on-year to $1.1 billion, surpassing the $1 billion milestone for the first time. AI-related revenue grew 60 percent to $9.3 billion, accounting for 35 percent of total group revenue. Gross profit margin expanded 1.8 percentage points to 16.5 percent, while R&D spending increased 30 percent to $682 million. All three business groups — Intelligent Devices, Infrastructure Solutions, and Solutions and Services — delivered record first-quarter revenue and operating profit.

The results mark the highest quarterly revenue growth in five years and show Lenovo's transition from PC maker to AI infrastructure player. The Infrastructure Solutions Group emerged as a key engine of both growth and profitability, while the company's role as FIFA World Cup 2026 official technology partner — spanning three countries, 16 cities, 48 teams, and 104 matches — is accelerating commercial opportunities and elevating its global brand. Lenovo's global supply chain and supplier relationships helped it manage industry-wide supply constraints during the quarter, turning disruption into a competitive advantage.

The company reported a net loss of $609 million under HKFRS, versus an estimated profit of $431.7 million, driven by operating expenses that rose 123 percent to $4.4 billion. Operating profit fell 98 percent to $19 million. The adjusted figures exclude items such as net fair value changes on financial assets and M&A-related amortization. Basic loss per share was 5.04 US cents, compared with earnings per share of 4.12 cents in the prior-year quarter.

Lenovo, a US$83 billion revenue technology company ranked 153rd in the Fortune Global 500, operates across 180 markets with more than 20 R&D locations and over 30 manufacturing sites in 11 markets. Its Hybrid AI strategy spans Personal AI — one personal AI across multiple devices — and Enterprise AI, helping customers turn data into insights. The full-stack AI portfolio includes devices, infrastructure solutions, software, and services, with AI revenue split across NPU-equipped PCs and smartphones, GPU servers, and AI enablement services.

The record quarter positions Lenovo to capitalize on AI-driven demand across PCs, servers, and enterprise solutions. Investors will watch whether the company can sustain this momentum through the second quarter, particularly as AI infrastructure spending continues to accelerate across the sector.

This article is for informational purposes only and does not constitute investment advice.