By Sherry Qin

Lenovo Group, the world's largest personal-computer maker, maintained double-digit revenue growth in its third quarter as it continued solid device sales and AI server revenue strengthened.

The better-than-expected results come against a backdrop of surging memory-chip prices disrupting the consumer-electronics market as artificial-intelligence demand outpaces supply. Some consumers have also pulled forward demand, worried that rising memory prices would make electronics more expensive this year, likely giving the PC maker a bump.

The company on Thursday recorded a 14% increase in revenue from its main PC, tablet and smartphone business, helping push overall revenue for the three months ended December 18% higher to $22.20 billion, a new record.

Its net profit was $546 million, down 21% from the year earlier, when it benefited from a $282 million nonrecurring income tax credit. Analysts had expected a 32% decline to $470 million, according to a FactSet consensus. Adjusted net profit rose 36%, exceeding market estimates.

"By leveraging our operational excellence, we effectively navigated market challenges of component cost increases and supply shortages," Lenovo Chairman and Chief Executive Yuanqing Yang said.

Analysts, however, flagged uncertainty ahead. UOB estimates that Lenovo could exhaust its cheaper inventory by the end of the March quarter, while industry watcher IDC has warned that the PC market could shrink up to 8.9% in 2026.

Despite the memory supply strain, driven by surging demand from AI networks, Lenovo is also reaping the rewards of the fast-growing technology. Its AI-related revenue accounted for 32% of overall revenue in the latest quarter, growing 72%.

The global AI boom has also contributed to the PC maker's growing digital infrastructure business. Lenovo in January launched new AI servers and teamed up with Nvidia to build an AI factory program that helps cloud providers deploy AI workloads more quickly.

In the three months ended December, revenue from its infrastructure-solutions business, which includes AI servers, climbed 31%, accelerating from 24% in the prior quarter. The segment has grown quickly in recent quarters, though it remains unprofitable.

The company said it booked a one-time restructuring charge of $285 million for the business during the period, putting the segment on track to return to profitability as early as the fiscal fourth quarter.

It said its AI server division registered high double-digit revenue growth during the quarter amid solid demand, and that it sees long-term growth opportunities, particularly as AI demand shifts from training to inferencing.

DBS estimates that Lenovo's share of China's server market could exceed 20% by 2028, with the infrastructure business turning sustainably profitable from fiscal 2027 as hyperscaler deployments scale and liquid cooling becomes standard for AI data centers.

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

(END) Dow Jones Newswires

February 12, 2026 03:01 ET (08:01 GMT)

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