Lenovo Group: Q1 2026/27 Financial Highlights

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08/13/2026 – 12:16 AM

Lenovo Achieves Record-Breaking Quarter Driven by Hybrid AI Strategy

HONG KONG — Lenovo Group Limited today announced its first-quarter fiscal year 2026/27 results, revealing the strongest quarter in the company’s history. This remarkable performance, marked by a 43% year-on-year revenue surge to an all-time quarterly high of $26.9 billion, underscores the potent impact of Lenovo’s strategic pivot towards Hybrid AI. All business segments reported record revenues and operating profits for the first fiscal quarter.

Adjusted net income soared by an impressive 176% year-on-year to $1.1 billion, surpassing the $1 billion threshold for the first time and signaling a significant expansion in profitability. This was fueled by a combination of increased revenue scale and sustained operational efficiencies, resulting in an almost two-percentage-point improvement in adjusted net margin. The company’s AI-related revenue, a key growth driver, climbed 60% year-on-year to $9.3 billion, now representing a substantial 35% of total Group revenue. Lenovo’s commitment to future innovation is evident in its 30% year-on-year increase in R&D expenses.

This quarter’s performance is a testament to Lenovo’s successful execution of its Hybrid AI strategy. Building upon its established leadership in PCs and smart devices, Lenovo is rapidly solidifying its position as a global powerhouse in AI solutions and infrastructure. The Infrastructure Solutions Group (ISG), in particular, emerged as a critical engine for both growth and profitability, delivering a record-breaking quarter.

Adding to its stellar performance, Lenovo recently concluded its role as FIFA’s Official Technology Partner for the 2026 FIFA World Cup™. This extensive partnership, spanning three countries, 16 cities, and 104 matches, showcased Lenovo’s capabilities in providing devices, infrastructure, services, and AI-powered innovation to support FIFA operations, global broadcasts, team analytics, officiating, and fan experiences at an unprecedented scale. The collaboration has not only enhanced customer engagement and accelerated commercial opportunities but also significantly boosted Lenovo’s global brand recognition as an AI leader.

Lenovo’s operational resilience proved to be a significant competitive advantage. The company’s extensive global scale, robust supply chain management, strong supplier relationships, and an integrated operating model enabled it to effectively navigate supply constraints and cost pressures, turning potential disruptions into opportunities for market share gains.

“Following Lenovo’s best year in history, we have now delivered our strongest quarter ever – with growth accelerating, profitability further improving, and AI emerging as a clear growth engine across every business group,” stated Yuanqing Yang, Chairman and CEO. “Building on our leadership in PCs and Smart Devices, we are proud of our rapid emergence as a global leader in AI and Infrastructure – a clear validation of our strategic foresight. Powered by our Hybrid AI strategy, operational excellence, and relentless innovation, Lenovo is not only navigating market cycles but also seizing initiatives to win. We are confident in our ability to drive sustainable, long-term growth and deliver greater value for our shareholders.”

**Financial Highlights:**

Q1 Operational Performance:

**Intelligent Devices Group (IDG):** IDG posted a 27% year-on-year revenue increase, reaching a record $17.1 billion for the first fiscal quarter. This growth was driven by a nearly 30% surge in PCs and smart devices. The segment maintained a robust 7.1% operating margin, a testament to its operational excellence and resilient supply chain. Lenovo further solidified its global PC market leadership, holding a 24.2% share and widening its lead over the second-largest competitor for the tenth consecutive quarter. Notably, Lenovo continues to dominate the AI PC market with a 25.1% share. Tablet revenue saw an impressive surge of over 80% year-on-year, while the smartphone business achieved its best fiscal first quarter revenue, up 15% year-on-year.

**Infrastructure Solutions Group (ISG):** ISG experienced phenomenal growth, nearly doubling its revenue year-on-year to a record $8.5 billion. Operating profit reached a new high of $777 million, driving the operating margin to an all-time peak of 9.1%. This stellar performance reflects significant investments in cloud, edge, and AI, particularly in AI inferencing capabilities, positioning ISG to capitalize on the burgeoning AI ecosystem and empower clients with transformative AI solutions. Both Cloud Service Provider (CSP) and Enterprise and SMB (ESMB) segments saw their revenues nearly double. In traditional computing, Lenovo secured the global number two position in x86 server revenue. The AI server pipeline expanded dramatically to $54 billion, a 157% quarter-on-quarter increase, driven by accelerating AI infrastructure demand and a rapidly growing customer base.

**Solutions and Services Group (SSG):** SSG delivered its highest quarterly revenue ever at $2.9 billion, a 28% year-on-year increase. Operating profit grew 39% year-on-year to $697 million, with an expanded operating margin of 24.2%, highlighting disciplined execution and a strategic focus on higher-value AI services and solutions. AI services revenue achieved triple-digit year-on-year growth, driven by increased adoption of AI Factory and AI Library solutions as clients transition from experimentation to production deployments. Managed Services and Projects and Solutions collectively accounted for over 62% of SSG’s revenue, reaching a new high, supported by a strong multi-quarter backlog and robust demand for outcome-based AI solutions. TruScale continued its strong growth trajectory, increasing 35% year-on-year. Solutions tailored for specific industries like sports, manufacturing, and retail contributed 50% revenue growth in Projects and Solutions. SSG continues to outpace the market, growing at nearly twice the market rate, underscoring its strategic position in the high-growth AI solutions and services sectors.

**Corporate Highlights:**

• Lenovo announced significant progress on its first-generation ESG goals, demonstrating measurable advancements in climate action, circular economy, social impact, and governance. The company also reinforced its commitment to responsible AI innovation and outlined new sustainability aspirations.
• Lenovo achieved its highest-ever ranking of fifth globally on the Gartner® Supply Chain Top 25 for 2026, showcasing its continued excellence in supply chain management.
• The company climbed 43 places to reach #153 on Fortune’s annual Global 500 List, marking its highest ranking to date and reflecting its strong AI-driven business growth.
• Lenovo expanded its North Carolina Smart Campus, significantly increasing server manufacturing capacity to meet rising demand from hyperscalers and enterprise clients, further strengthening its global manufacturing footprint.
• Lenovo achieved its highest-ever score of 93.7% in the Workplace Pride Global Benchmark for 2026, earning ‘Advocate’ status and demonstrating its commitment to diversity, equity, and inclusion across all measured areas.

^[1] Note on adjusted net income: This adjusted measure excludes net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets from M&A, M&A-related charges, impairment and write-off of intangible assets and property, plant and equipment, fair value change on derivative financial liabilities, notional interest on convertible bonds, and impairment of interests in associates, along with their corresponding tax effects.

^[2] Note on AI-related revenue: This includes AI Devices (PCs and Smartphones equipped with NPU), AI Servers (GPU Servers), and AI Services (Services enabling customers to build, scale, and manage AI).

**About Lenovo**

Lenovo, an $83 billion global technology powerhouse ranked #153 on the Fortune Global 500, delivers “Smarter Technology for All” to millions of customers daily across 180 markets. The company’s Hybrid AI strategy encompasses Personal AI across multiple devices and Enterprise AI for data-driven insights and value creation. Lenovo’s comprehensive AI portfolio includes devices, infrastructure solutions, and services, supported by world-class innovation, extensive R&D, and a global supply chain.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260812816414/en/

**Media Contacts**

Hong Kong – Angela Lee,

London – Charlotte West,

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Source: Lenovo Group Limited