Lenovo Q1 2025/26 Results Show Strong Growth

News Desk - 14/08/2025

Lenovo Q1 results for fiscal year 2025/26 were announced today, reporting robust growth across revenue and profit. Group revenue rose 22% year-on-year to US$18.8 billion. Net income surged 108% year-on-year to US$505 million. On a non-HKFRS basis, net income grew 22% to US$389 million, adjusted for non-cash fair value gains on warrants.

All main business groups saw double-digit revenue growth. The PC business recorded its highest year-on-year revenue growth in 15 consecutive quarters and achieved a record market share of 24.6%. Non-PC revenue rose nearly half a point to 47%. Lenovo reported strong growth across all sales geographies.

Lenovo credited three key factors for the results. First, the company continues to execute its hybrid AI strategy, seizing opportunities in personal and enterprise AI. Second, R&D spending increased over 10% year-on-year, supporting innovation and AI twin development. Third, operational excellence, including a unique ODM+ manufacturing model and balanced global sales footprint, strengthened competitiveness.

Chairman and CEO Yuanqing Yang said, “By leveraging our resilient supply chain and operational excellence, we overcame challenges from tariffs and geopolitical uncertainties. These record Q1 results show our commitment to hybrid AI, innovation, and sustainable growth.”

Intelligent Devices Group (IDG) revenue grew nearly 18% year-on-year to US$13.5 billion. PC and smart devices revenue rose 19%, maintaining industry-leading profitability. AI PC penetration exceeded 30% of all Lenovo shipments, with Lenovo ranked #1 globally in Windows AI PCs at 31% market share. Smartphone revenue increased 14% to US$2.2 billion. Motorola achieved over 50% market share in foldables outside China.

Infrastructure Solutions Group (ISG) delivered 36% revenue growth to US$4.3 billion, driven by AI infrastructure, E/SMB expansion, and cloud service execution. Revenue from liquid cooling solutions grew 30% year-on-year.

Solutions and Services Group (SSG) reported 20% revenue growth to US$2.3 billion, marking 17 consecutive quarters of growth. Operating margin improved to over 22%. TruScale Infrastructure-as-a-Service and Device-as-a-Service saw double- to triple-digit growth. AI-driven solutions gained traction in manufacturing and supply chain sectors.

Lenovo also highlighted ESG progress. The Group reaffirmed its ambition for net-zero emissions by 2050 and expanded circular economy practices. Lenovo earned top ESG recognitions, including EcoVadis Platinum, MSCI AAA, and CDP A-list. It was ranked #8 in Gartner’s Top 25 Global Supply Chains and climbed 52 spots on the Fortune Global 500 list, achieving its highest technology sector ranking at 13th.

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