Lenovo (HKG:0992) posted record fiscal fourth-quarter revenue and its fastest quarterly growth in five years as strong demand for artificial intelligence and rapid server expansion drove earnings sharply higher.

Revenue for the three months ended March 31 rose 27% year over year to a record $21.6 billion, according to a Friday Hong Kong bourse filing, surpassing the Visible Alpha consensus estimate of $19.6 billion.

Profit attributable to equity holders surged 479% to $521 million in the fiscal fourth quarter from $90 million a year earlier.

Earnings per share came in at $0.0380 from $0.0071 in the corresponding period last year, compared with the Visible Alpha consensus estimate of $0.03 per share.

For fiscal 2026, profit attributable to equity holders rose 38% to $1.91 billion from $1.38 billion a year earlier.

While annual revenue climbed 20% to a record $83.1 billion, above the Visible Alpha estimate of $80.9 billion.

Lenovo said AI-related revenue accounted for 38% of total fourth-quarter revenue and increased 84% year over year.

The company said all three business groups delivered double-digit revenue growth despite tariffs, rising component costs, and the war in the Middle East.

Lenovo added that AI server revenue posted high double-digit growth during the year, supported by a $21 billion pipeline at the end of fiscal 2026.

Chief Executive Yang Yuanqing told Reuters earlier this year that the company had raised PC prices to offset surging memory costs amid a worsening global memory chip shortage while accelerating its expansion into the fast-growing AI inference market.

"We expect PC unit sales to face pressure, but believe we can still grow revenue and maintain profitability," Yang told Reuters in February.

Looking ahead, Lenovo said it will continue to expand its Hybrid AI strategy through AI-enabled devices, enterprise infrastructure, and services offerings as businesses increasingly shift toward real-time AI inferencing and hybrid AI deployments.

The company said it expects to begin deliveries of Nvidia's Rubin-based AI platforms in the second half of calendar 2026.

"Our hybrid AI vision puts us at the forefront of AI inferencing and AI democratization, so I'm fully confident that we will achieve our goal to become a $100 billion company in two years," Yang said in an interview after the earnings release, according to Bloomberg.