Lenovo's Revenue Beats Expectations on Robust AI Demand

By Sherry Qin

Lenovo Group kicked off its fiscal year on a strong note with record-high revenue thanks to robust artificial-intelligence infrastructure demand and its resilient personal-computer business.

The world's largest personal-computer maker is increasingly being viewed as both an AI infrastructure and AI device play as it branches out beyond computers.

Its fiscal first quarter results put it on a sound footing toward meeting its goal of $100 billion in annual revenue in the next two years. Lenovo ended its latest fiscal year in March with $83.1 billion in revenue, after recording its strongest quarterly top-line growth in five years.

The company on Thursday said revenue in the three months ended June rose grew 43%, compared with the same period a year earlier, at $26.94 billion, beating market expectations for $22.33 billion.

Its adjusted net profit surged 176% on year to $1.075 billion, also comfortably beating market expectations. Still, unadjusted net profit was hit by a nonrecurring fair-value loss due to the revaluation of its warrants and swung to a loss of $609 million.

AI has continued to become a more meaningful growth engine for Lenovo with AI-related revenue in the quarter making up 35% of the total.

Its infrastructure-solutions business powered ahead thanks to the surge in AI server demand with the growing adoption of agentic AI by both overseas and domestic clients. Revenue for this segment almost doubled, producing an operating profit of $777 million.

"We believe Lenovo is well positioned to benefit from the growing budget for AI infrastructure, as its improving execution and streamlined product portfolio should support sustained high growth and margin expansion," Macquarie analyst Cherry Ma said in a recent note.

Lenovo's intelligent-devices group, which includes PCs, smartphones and tablets, saw 27% revenue growth amid surging memory costs.

Worldwide PC shipments fell 4.9% from a year earlier in the April-June period--the first decline after nine consecutive quarters of growth--as the memory shortage pushed up prices of consumer electronics, according to data from industry tracker IDC.

Lenovo remained the world's leading PC maker despite lower shipments during the quarter, with a market share of 24.2%.

The weakness in PC sales could prove temporary as a new line of AI PCs equipped with Nvidia's new chip is expected to roll out later this year, supporting Lenovo's core business.

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

(END) Dow Jones Newswires

August 13, 2026 00:56 ET (04:56 GMT)