Lenovo profits soar past expectations on AI computers, servers and services

By Steve Goldstein

People visit the Lenovo booth during the Mobile World Congress (MWC) in Shanghai on June 24, 2026. Lenovo revenue jumped 43% in the June-ending quarter.

Lenovo Group on Thursday became the latest company in the build-out of artificial intelligence to report soaring profits that caught investors by surprise.

Lenovo (HK:992) (LNVGY) said its adjusted profit rose 176% to $1.1 billion in the fiscal first quarter as revenue jumped 43% to $26.9 billion.

Analysts had expected a profit of $716 million on sales of $22.53 billion, according to Visible Alpha.

The company's AI revenue, which counts all PCs and smartphones with dedicated AI accelerators, AI and GPU servers and related services, jumped 60%, to now account for 35% of all revenue.

The "adjustment" meant a lot to its profit, as it took a $1.69 billion loss on the revaluation of warrants issued last year. The revaluation was paradoxically because the stock surged in value.

Lenovo shares jumped a further 20% on Thursday, making it the best performing stock in the Stoxx Asia 600 XX:SXP1.

Lenovo rival Dell Technologies (DELL), which rose on Wednesday following results from Super Micro Computer, rose another 4% in premarket trade.

-Steve Goldstein

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08-13-26 0700ET