Lenovo delivers exceptional fourth quarter results -- maintaining growth and concluding strongest year in the Group's history
HONG KONG--(BUSINESS WIRE)--May 21, 2026--
Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), together with its subsidiaries ('the Group'), today reported fourth quarter and full year results for fiscal year 2025/26, marking an exceptional Q4 and the strongest year in the Group's history. During the quarter, overall Group revenue reached an all-time fourth quarter high of US$21.6 billion, up 27% year-on-year, marking the highest year-on-year growth rate in five years, with adjusted net income([1]) doubling year-on-year to US$559 million. AI-related revenue([2]) stood out as a leading growth engine, growing 84% year-on-year to account for 38% of total Group revenue in Q4.
For the full year, the Group delivered record revenue of US$83.1 billion, with adjusted net income growing 42% year-on-year to US$2 billion. All business groups achieved solid double-digit year-on-year revenue growth, with a notable record full-year performance from the Infrastructure Solutions Group (ISG) with revenue of US$19.2 billion, full-year profitability, and US$142 million year-on-year improvement in operating profit. AI-related revenue doubled year-on-year accounting for 33% of Group revenue in the full year.
The fourth quarter and full-year results demonstrate the Group's ability to sustain growth and strengthen its competitive position while navigating a complex external environment marked by supply shortages and rising component costs. Its operational excellence - underpinned by a balanced global business and manufacturing footprint, and global-local operating model - has delivered strong structural resilience in a volatile environment. The Group also continued to increase investment in innovation, with R&D expenses rising 16% year-on-year in the fourth quarter to 3.5% of Group revenue and increasing 9% year-on-year to 3% of full year Group revenue. At the same time, continued progress in delivering its Hybrid AI vision is positioning Lenovo at the forefront of the AI inferencing and democratization era.
Lenovo's Board of Directors declared a final dividend of 33.70 HK cents per share for the fiscal year ended March 31, 2026.
Chairman and CEO quote -- Yuanqing Yang:
"Lenovo concluded its best year ever with an exceptional fourth quarter, where we delivered on our promises. We returned our Infrastructure Solutions Group to a sustainable and profitable growth trajectory and achieved hyper-growth by capturing the opportunity of the booming AI infrastructure market. Through firm execution of our Hybrid AI strategy, we are uniquely positioned to lead in the new wave of AI inferencing and democratization. With strong momentum across all our businesses, we are confident in our ambition to become a US$100 billion company within the next two years, while continuing to deliver strong returns for our shareholders."
Financial Highlights:
Q4 FY25/26 Q4 FY24/25
US$ US$ FY25/26 US$ FY24/25 US$
millions millions Change millions millions Change
--------------------- ------------ ------------ ------ ------------ ------------ ------
Group Revenue 21,588 16,984 27% 83,075 69,077 20%
--------------------- ------------ ------------ ------ ------------ ------------ ------
Net Income (profit
attributable to
equity holders) 521 90 479% 1,912 1,384 38%
--------------------- ------------ ------------ ------ ------------ ------------ ------
Adjusted Net Income
(profit attributable
to equity holders --
non-HKFRS) ([1]) 559 278 101% 2,049 1,441 42%
--------------------- ------------ ------------ ------ ------------ ------------ ------
Basic earnings per
share (US cents) 4.32 0.73 3.59 15.63 11.30 4.33
--------------------- ------------ ------------ ------ ------------ ------------ ------
Q4 results:
Intelligent Devices Group (IDG):
-- Revenue for IDG increased 24% year-on-year to US$14.6 billion, with PC
and Smart devices revenue up 26% year-on-year, the highest growth rate in
five years. Operating margin was well maintained at 6.9%.
-- In PCs Lenovo maintained its significant profit lead against the
competition, shipment growth outpacing the market by nearly six
percentage points. In addition, it was the only company among the top
five global vendors to deliver consecutive positive year-on-year shipment
growth during the past 10 quarters.
-- Global PC market share reached a fourth quarter high at 24.4%,
retaining the #1 position, with the gap between the #1 and #2 players in
the industry widening to the largest in 15 years.
-- Premium PC shipment mix reached 50% in the fourth quarter, with
shipments up 29% year-on-year, reflecting strong execution in
higher-value segments.
-- For the mobile business, Motorola smartphones achieved record
fourth-quarter shipments, delivering double-digit revenue growth
year-on-year.
Infrastructure Solutions Group (ISG):
-- ISG's turnaround delivered the highest ever operating profits and
margins since entering the business, with record quarterly revenue of
US$5.6 billion, up 37% year-on-year, and operating profit of US$202
million.
-- The business is seeing robust momentum across the board, with an AI
server business pipeline of US$21 billion and more than 5,800 customer AI
deployments.
-- Rack-scale execution advanced, with first GB300 NVL72 racks shipped
last quarter and Rubin-based platforms on track for targeted
time-to-market in the second half, supporting faster time to first token
and scaled customer delivery.
-- Annual server manufacturing capacity surpassed 70,000 racks across AI,
compute, and storage systems, including more than 11,000 Direct
Liquid-Cooled racks purpose-built for AI workloads.
-- The acquisition of Infinidat was completed in early April,
strengthening ISG's high-end enterprise storage capabilities and
unlocking long-term potential for margin expansion and broader market
opportunities.
Solutions and Services Group $(SSG)$:
-- SSG sustained its double-digit year-on-year revenue growth and high
profitability of more than 20%, with revenue growing to US$2.6 billion,
up 19% year-on-year, and extending five consecutive years of double-digit
year-on-year revenue growth.
-- A record 62% of revenue came from Managed Services and Project and
Solutions, accelerating the shift to higher--value, recurring services
delivered through a scalable, tech--led, labor--light model, underpinned
by deep domain and industry expertise.
-- Lenovo Hybrid AI Advantage$(TM)$ continued to gain traction, helping
customers reduce time to first token with AI Factory and increase value
per token through more than 60 AI use cases in the AI Library, scaling
across manufacturing, retail, and sports.
-- TruScale emerged as a key growth driver, helping enterprises and cloud
providers scale AI in production through a flexible, consumption-based
model that accelerated deployment, improved utilization, and enabled AI
scaling with greater cost predictability and supply assurance.
Full fiscal year summary
Group revenue surpassed US$80 billion for the first time at US$83.1 billion, up 20% year-on-year. Adjusted net income grew 42% year-on-year to US$2 billion, growing twice as fast as revenue. All business groups achieved double-digit year-on-year revenue growth, and the key growth engine of AI saw AI-related revenue growing 105% year-on-year to become 33% of Group revenue. R&D expenses were up 9% year-on-year to 3% of Group revenue. Key business group highlights include:
-- IDG -- full year revenue of US$58.9 billion, up 17% year-on-year, with
strengthened market leadership across PC segments and adjacencies.
-- ISG - record full-year revenue of US$19.2 billion, up 32% year-on-year,
reaching full-year profitability with operating profit improving to US$73
million.
-- SSG -- revenue surpassed the US$10 billion revenue mark for the first
time, up 19% year-on-year, with operating profits more than doubling over
the past five fiscal years.
Corporate and ESG highlights
Achievements, announcements, and notable commitments over the past quarter include:
-- Lenovo earned the EcoVadis Platinum Medal, reaffirming its position
among the top 1% of companies assessed globally, and was recognized as a
SERI Champion for its leadership in electronics sustainability.
-- Lenovo was recognized by Corporate Knights as one of the World's Most
Sustainable Companies, and named by Forbes among the World's Best
Employers 2025 and World's Top Companies for Women 2025.
-- Lenovo was also included for the eighth consecutive year in the Human
Rights Campaign Foundation's Corporate Equality Index, earning a score of
95%.
[1] Note on adjusted net income: Adjusted measure was defined as financial
metric by excluding net fair value changes on financial assets at fair value
through profit or loss, amortization of intangible assets resulting from
mergers and acquisitions, impairment and write-off of intangible assets ,
property, plant and equipment and construction-in-progress, fair value change
on derivative financial liabilities relating to warrants, one-time income tax
credit, restructuring charges, dilution gain on interests in associates and a
joint venture, impairment of interests in associates, gain on deemed disposal
of a subsidiary, and notional interest on convertible bonds; and the corresponding income tax effects, if any. [2] Note on AI-related revenue: AI Devices: PCs and Smartphones equipped with NPU; AI Servers: GPU Servers; AI Services: Services that enable customer to build, scale & manage AI.
About Lenovo
Lenovo is a US$83 billion revenue global technology powerhouse, ranked #196 in the Fortune Global 500, and serving millions of customers every day in 180 markets. Guided by its vision of "Smarter Technology for All", Lenovo is executing a Hybrid AI strategy that spans Personal AI -- one personal AI, multiple devices; and Enterprise AI -- helping customers turn data into insights and value. This strategy is delivered through the Group's commitment to world-class innovation and a full-stack AI portfolio, including devices (PCs, workstations, smartphones, tablets, accessories), infrastructure solutions (server, storage, edge, high performance computing and software defined infrastructure), as well as software, solutions, and services. With a global footprint spanning 21 research and development locations in 11 markets, and a global supply chain including more than 30 manufacturing sites across 10 markets, Lenovo is widely recognized for its operational excellence, including ranking #8 in the Gartner Supply Chain Top 25. Lenovo is listed on the Hong Kong stock exchange under Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). Learn more at www.lenovo.com and follow the latest news in our newsroom.
LENOVO GROUP
FINANCIAL SUMMARY
For the quarter and year ended March 31, 2026
(in US$ millions, except per share data)
Q4 Q4 Y/Y
FY25/26 FY24/25 CH FY25/26 FY24/25 Y/Y CH
----------------------- -------- -------- ------ -------- -------- ----------
Revenue 21,588 16,984 27% 83,075 69,077 20%
------------------------ -------- -------- ------ -------- -------- ----------
Gross profit 3,539 2,783 27% 12,809 11,098 15%
------------------------ -------- -------- ------ -------- -------- ----------
Gross profit margin 16.4% 16.4% 0 pts 15.4% 16.1% (0.7) pts
------------------------ -------- -------- ------ -------- -------- ----------
Operating expenses (2,653) (2,452) 8% (9,547) (8,934) 7%
------------------------ -------- -------- ------ -------- -------- ----------
R&D expenses (included
in operating expenses) (748) (644) 16% (2,490) (2,288) 9%
------------------------ -------- -------- ------ -------- -------- ----------
Expenses-to-revenue (2.1)
ratio 12.3% 14.4% pts 11.5% 12.9% (1.4) pts
------------------------ -------- -------- ------ -------- -------- ----------
Operating profit 886 331 167% 3,262 2,164 51%
------------------------ -------- -------- ------ -------- -------- ----------
Other non-operating
income/(expenses) --
net (151) (153) (2%) (592) (683) (13%)
------------------------ -------- -------- ------ -------- -------- ----------
Profit before taxation 735 178 314% 2,670 1,481 80%
------------------------ -------- -------- ------ -------- -------- ----------
Taxation (141) (54) 165% (510) (19) 2596%
------------------------ -------- -------- ------ -------- -------- ----------
Profit for the
period/year 594 124 378% 2,160 1,462 48%
------------------------ -------- -------- ------ -------- -------- ----------
Non-controlling
interests (73) (34) 112% (248) (78) 220%
------------------------ -------- -------- ------ -------- -------- ----------
Net Income (Profit
attributable to equity
holders) 521 90 479% 1,912 1,384 38%
------------------------ -------- -------- ------ -------- -------- ----------
Adjusted Net Income
(Profit attributable to
equity holders --
non-HKFRS)([1]) 559 278 101% 2,049 1,441 42%
------------------------ -------- -------- ------ -------- -------- ----------
Earnings per share (US 3.59
cents) Basic Diluted 4.32 0.73 3.09 15.63 11.30 4.33
3.80 0.71 13.91 10.62 3.29
------------------------ -------- -------- ------ -------- -------- ----------
View source version on businesswire.com: https://www.businesswire.com/news/home/20260521007160/en/
CONTACT: Press Contacts
Hong Kong -- Angela Lee, angelalee@lenovo.com
London -- Charlotte West, cwest@lenovo.com
Zeno Group - LenovoWWcorp@zenogroup.com
(END) Dow Jones Newswires
May 21, 2026 19:47 ET (23:47 GMT)