Lenovo Group Limited reported strong financial results for the first quarter of its 2025/26 fiscal year, with revenue rising 22% year-on-year to $18.8 billion and net income up 108% to $505 million. On a non-HKFRS basis, which excludes certain non-cash items related to warrants and convertible bonds, net income grew by 22% to $389 million. The company attributes these results to its hybrid AI strategy, increased investment in innovation, and operational efficiency.
All major business segments saw double-digit revenue growth. Lenovo’s PC business achieved its highest revenue growth rate in fifteen quarters and reached a record market share of 24.6%. Non-PC businesses contributed nearly half of total group revenue, increasing their mix by almost half a percentage point compared to the previous year.
Chairman and CEO Yuanqing Yang said: “By leveraging the resilience and flexibility of our supply chain and operational excellence, we overcame challenges brought by tariff volatility and the geopolitical landscape and achieved significant growth in both top and bottom lines. These record Q1 results underscore our ability to deliver on our promise to preserve competitiveness and continuously grow our business. 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 realize sustainable growth and profitability improvement.”
The Intelligent Devices Group (IDG) saw overall revenue rise nearly 18% year-on-year to $13.5 billion. PCs and smart devices grew at their fastest pace in fifteen quarters with all regions recording double-digit increases. Operating profit remained above 8%, supported by strong performance from high-margin segments. Lenovo now holds a global Windows AI PC market share of 31%, while more than 30% of all Lenovo PC shipments are classified as AI PCs.
Smartphone revenue increased over 14% year-on-year to $2.2 billion, driven largely by sales outside China where Motorola achieved the leading position in foldable phones with over 50% market share.
The Infrastructure Solutions Group (ISG) posted a 36% increase in quarterly revenue to $4.3 billion, led by demand from cloud service providers as well as small- and medium-sized enterprises. Revenue from AI infrastructure more than doubled compared with last year, while liquid cooling solutions saw a 30% gain.
Solutions and Services Group (SSG) delivered record revenues for the seventeenth consecutive quarter—up 20% year-on-year at $2.3 billion—with operating margins rising above 22%. Managed services such as TruScale Infrastructure-as-a-Service showed triple-digit growth in signings for the quarter.
Lenovo published its FY2024/25 Environmental, Social, and Governance Report in June detailing progress toward emissions reduction targets including reaffirming an ambition for net-zero greenhouse gas emissions by 2050. The company continues efforts on circular economy initiatives like using closed-loop recycled materials in products.
Third-party organizations recognized Lenovo’s sustainability work: EcoVadis awarded it a Platinum Medal; MSCI gave it AAA ESG ratings; CDP listed it highly on climate action; while the Hong Kong Institute of Certified Public Accountants gave it a Gold Award for corporate governance reporting.
Recently ranked #8 globally for supply chain operations by Gartner with an ESG score of nine out of ten (https://www.gartner.com/en/supply-chain/research/supply-chain-top-25), Lenovo was also noted for moving up fifty-two places on this year’s Fortune Global 500 list (https://fortune.com/ranking/global500/lenovo-group), achieving its highest ranking yet among technology companies worldwide.
###
