Lenovo Group delivered exceptional first-quarter results for FY2025/26, with revenue jumping 22% year-on-year to $18.8 billion and net income surging 108% to $505 million. The Chinese tech giant’s hybrid AI strategy and operational excellence drove record performance across all business segments.
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Strong Growth Across All Divisions
The company’s diversified portfolio showed remarkable resilience, with non-PC revenue reaching 47% of total sales. All three main business groups posted solid double-digit growth, demonstrating Lenovo’s successful transformation beyond traditional PC manufacturing.
Lenovo Q1 FY2025/26 Financial Highlights
| Metric | Q1 FY25/26 | Q1 FY24/25 | Growth |
|---|---|---|---|
| Revenue | $18.8B | $15.4B | 22% |
| Net Income | $505M | $243M | 108% |
| PC Market Share | 24.6% | – | All-time high |
| AI PC Penetration | 30%+ | – | Accelerating |
| R&D Investment | $524M | $476M | 10% |
PC Business Reaches New Heights
The Intelligent Devices Group (IDG) generated $13.5 billion in revenue, up nearly 18% year-on-year. Lenovo achieved a record 24.6% global PC market share while maintaining industry-leading profitability above 8%. AI PCs now represent over 30% of shipments, with Lenovo holding the #1 position in Windows AI PCs at 31% market share.
Infrastructure and Services Momentum
Infrastructure Solutions Group (ISG) revenue surged 36% to $4.3 billion, driven by AI infrastructure demand that more than doubled year-on-year. The Solutions and Services Group (SSG) delivered its 17th consecutive quarter of growth, reaching $2.3 billion in revenue with operating margins exceeding 22%.
AI Strategy Driving Innovation
CEO Yuanqing Yang emphasized the company’s “Smarter AI for all” vision, with R&D spending increasing over 10% to support personal and enterprise AI development. The hybrid AI approach combines global sourcing with local delivery, providing flexibility against market volatility and geopolitical challenges.
Beyond financial performance, Lenovo climbed 52 spots to #196 on the Fortune Global 500 list and ranked #8 in Gartner’s Top 25 Global Supply Chain with a 9/10 ESG score.
For investors tracking technology earnings results, Lenovo’s diversified growth strategy and AI leadership position it strongly for continued expansion in the evolving tech landscape.
The company maintains its commitment to net-zero emissions by 2050 while delivering breakthrough innovations across its expanding portfolio of AI-enabled devices and infrastructure solutions.
FAQs
What drove Lenovo’s exceptional Q1 2025/26 revenue growth of 22%?
The hybrid AI strategy, increased R&D investment, and operational excellence across all business segments.
How significant is Lenovo’s AI PC market position?
Lenovo leads Windows AI PCs with 31% market share and 30%+ of total PC shipments are AI-enabled.
