People visit the Lenovo booth during the Mobile World Congress $(MWC)$ in Shanghai on June 24, 2026. Lenovo revenue jumped 43% in the June-ending quarter.

Lenovo Group on Thursday became the latest company in the build-out of artificial intelligence to report soaring profits that caught investors by surprise.

Lenovo (HK:992) $(LNVGY)$ said its adjusted profit rose 176% to $1.1 billion in the fiscal first quarter as revenue jumped 43% to $26.9 billion.

Analysts had expected a profit of $716 million on sales of $22.53 billion, according to Visible Alpha.

The company's AI revenue, which counts all PCs and smartphones with dedicated AI accelerators, AI and GPU servers and related services, jumped 60%, to now account for 35% of all revenue.

The "adjustment" meant a lot to its profit, as it took a $1.69 billion loss on the revaluation of warrants issued last year. The revaluation was paradoxically because the stock surged in value.

Lenovo shares jumped a further 20% on Thursday, making it the best performing stock in the Stoxx Asia 600 XX:SXP1.

-Steve Goldstein