Company Reports

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with a 24% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 60%-70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market. Lenovo's strong brand equity should also allow it to more effectively pass on higher component costs to customers.

Lenovo's June-quarter revenue and non-HKFRS operating margin of USD 26 billion and 6%, respectively, rose 43% and 230 basis points year-on-year. Management expects to achieve its midterm goal of USD 100 billion in annual revenue this fiscal, 1 year ahead of prior guidance. Shares closed 20% up.

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with 24% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 60%-70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market. Lenovo's strong brand equity should also allow it to more effectively pass on higher component costs to customers.

Lenovo's investor day, held on June 25, 2026, sets ambitious long-term financial goals, aiming to increase revenue from USD 83 billion to USD 130 billion-USD 150 billion and increase its net margin target to 5% within the next 3 to 5 years, from 2.4% in fiscal 2026.

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with 24% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 60%-70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market. Lenovo's strong brand equity should also allow it to more effectively pass on higher component costs to customers.

Lenovo's March-quarter revenue and non-HKFRS operating margin of USD 21.6 billion and 3.9%, respectively, grew 27% and 103 basis points year over year. Shares closed 19.9% higher after the earnings call.

Lenovo reported December-quarter revenue and non-HKFRS operating profit of USD 22.2 billion and USD 903 million, respectively, up 18% and 28%. Shares closed 4% down after the company's earnings call.

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with 26% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market.

Lenovo's September-quarter revenue and non-HKFRS operating profit stood at USD 20.5 billion and USD 756 million, respectively, up 15% and 9% year over year.

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with 26% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market.

Lenovo's June-quarter revenue grew 22%, driven by continued strong growth in PC and server demand. However, operating margins dropped to 3.4% from 3.7% a year ago, on a non-HKFRS basis, which excludes warrant revaluation gains. Shares fell 6% on the day of the announcement.

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with 26% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market.

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with 26% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market.

Lenovo’s sales for the March quarter increased 23% year over year, driven by robust shipments of servers and PCs. However, operating margin fell to 2%, compared with 3.5% a year ago, due to the tariff impact and warrant revaluation losses. Shares dropped 5.4% the day after the announcement.

Lenovo's December-quarter revenue rose 19.6% year over year, driven by 59% growth in the infrastructure solutions group, or ISG, and 12% growth in the intelligent devices group, or IDG. Lenovo shares fell after the earnings announcement, closing down 6% from the previous day.

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with 26% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market.

Lenovo's revenue for the September quarter was USD 17.9 billion, up 24% year over year, driven by 17% growth in the IDG segment and 65% growth in the SSG segment. Due to the revenue growth, Lenovo's operating income increased 27% year over year to USD 651 million.

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with 24% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market.

We trim our fair value estimate for Lenovo to HKD 13.50 per share from HKD 14.00, based on the mixed June-quarter results. On the positive side, June-quarter revenue of USD 15.4 billion was up 19.7% year on year. This was above our forecast of USD 14.6 billion, on robust PC and server sales, supporting our view that Lenovo is one of the beneficiaries of the computing demand. On the other hand, the firm's operating margin declined to 3.2% from 3.5% in the previous quarter, which makes us concerned that the robust revenue growth is not translating into sufficient profit growth. In particular, although server revenue rose about 25% sequentially, profitability did not improve substantially when we exclude the one-time charge recorded in the March quarter, which we believe is due to the rising research and development costs to accommodate the robust server demand and the low-margin nature of the business. As a result, we raise our revenue forecasts for this fiscal year and next to USD 65 billion and USD 73 billion, from USD 61.5 billion and USD 68.5 billion; but lower our operating margin assumptions to 3.6% and 4.1% from 3.9% and 4.5%, respectively. Despite lowering our earnings forecasts, we remain optimistic about Lenovo’s medium-term growth, driven by increasing PC replacement demand, and believe shares are undervalued.

Lenovo’s acquisition of IBM’s ThinkPad PC business in 2005 has helped propel the company to be a leader in the PC market with 24% global market share. The successful integration of the ThinkPad business has also enabled Lenovo to increase its commercial-related sales, which currently make up 60% of its PC sales, as well as stabilize its PC margins in recent years. We expect PC sales to continue to make up around 70% of overall sales, while the segment’s profit margins should remain stable, given less intense competition at the higher end of the PC market.