Lenovo Posts Record Revenue, Expects to Hit $100 Billion Goal This Year — Update

By Sherry Qin

Lenovo Group kicked off its fiscal year with record sales and now expects to achieve its $100 billion annual revenue goal ahead of schedule, thanks to robust AI infrastructure demand and a resilient personal-computer business.

The upgraded guidance comes as the world's largest PC maker branches out beyond computers, helping it increasingly be viewed as a play on the AI infrastructure and AI device themes.

The company on Thursday said revenue grew 43% to $26.94 billion in the three months ended June, surpassing market expectations of $22.33 billion.

Its infrastructure-solutions business, encompassing data-center hardware, powered ahead on surging AI server demand fueled by growing adoption of agentic AI by both overseas and domestic clients. Segment revenue nearly doubled from a year earlier, producing an operating profit of $777 million.

With the business "flying as fast as [a] Boeing 777," Chairman and Chief Executive Yuanqing Yang said he now expects the company to hit the $100 billion revenue mark this fiscal year.

A $54 billion AI server pipeline, up more than twofold from a year ago, with clients spanning cloud service providers to enterprises, will serve as fuel to reach that milestone.

Artificial intelligence has become a more meaningful growth engine for Lenovo as its AI server orders have translated into tangible revenue. AI-related revenue accounted for 35% of the total in its fiscal first quarter.

The PC and server giant also beat expectations on other key metrics, with adjusted net profit nearly tripling to $1.075 billion. The company swung to a $609 million net loss, however, hurt by a nonrecurring fair-value loss due to the revaluation of its warrants.

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

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

"While raising end-device prices should help support margins and maintain revenue growth, it will inevitably put pressure on unit volumes," Counterpoint Research analyst Ivan Lam said.

Despite the lower shipments, Lenovo remained the world's leading PC maker, 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.

Lenovo's Hong Kong-listed shares have rallied as investors rerate the company on its AI potential, sending the stock about 150% higher in the June quarter. Shares jumped 20% on Thursday after the results, taking year-to-date gains to more than 275%.

"Lenovo's AI story is compelling, with significant upside potential," Counterpoint's Lam said.

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

(END) Dow Jones Newswires

August 13, 2026 06:23 ET (10:23 GMT)