Lenovo Targets $100 Billion Annual Revenue Within Two Years After Stellar Quarter — Update

By Sherry Qin

Lenovo Group recorded its fastest revenue growth in years, driven by strong demand for AI-enabled devices and AI infrastructure, and targets hitting the $100 billion sales milestone within the next two years.

The world's largest personal-computer maker said Friday that revenue surged 27% to $21.60 billion for the three months ended March, with AI-related revenue accounting for 38% of the total. The quarterly growth--its strongest in five years--brought revenue for the full year to $83.1 billion, the company said.

Net profit rose nearly sixfold to $521 million, far above the $291 million analysts were looking for, according to a FactSet poll. Adjusted net profit doubled to $559 million, also topping market expectations.

Building on the momentum, the company has set its sights on $100 billion in annual revenue--a goal it expects to achieve in the next two years.

To get there, Lenovo plans to capture long-term opportunities in artificial-intelligence infrastructure, scale its service business and strengthen its leadership in the devices market, according to Chief Executive Yang Yuanqing, who outlined the three-pronged strategy in an interview after the results.

Shares in the company rallied 20% on the news, on track for their highest close since listing in 1994.

Earlier Friday, Lenovo said its infrastructure-solutions business, which includes AI servers, delivered its highest-ever quarterly revenue and operating profit, citing a strengthened business model, the recent restructuring and robust AI demand. Calling it "an inflection point" for the business, the PC maker said it expects the infrastructure business to become another engine for growth and profitability.

DBS said previously that the company's server business could achieve sustainable profitability from the new fiscal year as deployments scale and liquid cooling becomes standard in new AI data centers.

Lenovo remained the world's leading PC maker by shipments in the first three months of 2026, with a market share of 25%, according to data from industry tracker IDC. The company said its premium PC mix reached 50% of total shipments in the latest quarter.

Still, headwinds remain. The rapid AI infrastructure buildout is causing a global memory-chip shortage, driving up prices across the board and crowding out production capacity for other markets, including PCs and smartphones.

Analysts have expressed concern about surging memory costs eating into margins, though Yang has said that Lenovo will leverage its supply-chain strength and better product mix to weather the challenges.

"The strength of every PC vendor's supply chain and ability to access core components, such as memory, will be tested," said IDC's Jean Philippe Bouchard.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

May 22, 2026 03:36 ET (07:36 GMT)