Lenovo Group (00992) announced robust financial results for the third quarter ended December 31, 2025. Group revenue increased by 18% year-on-year to a record $22.2 billion, with all three of its core business groups achieving double-digit revenue growth. Revenue related to artificial intelligence grew by 72% compared to the same period last year, accounting for 32% of the group's total revenue.
Adjusted profit attributable to equity holders for the quarter reached $589 million, an increase of 36% year-on-year, a growth rate twice that of revenue growth. Reported profit attributable to equity holders was $546 million. Major adjustments included a one-time restructuring cost of $285 million, an income tax credit of $45 million, a non-cash fair value gain of $186 million from warrants, notional interest of $29 million on convertible bonds, and other non-cash adjustments of $40 million.
The Infrastructure Solutions Group, the Solutions and Services Group, and the Intelligent Devices Group all delivered strong quarterly performances. The Intelligent Devices Group reinforced its leading position in the global PC market, widening its market share gap over the second-ranked competitor. Over the past three decades, Lenovo is the only PC supplier to have achieved a global market share exceeding 25% for two consecutive quarters. Motorola smartphone shipments and activations both hit record highs, with revenue growth in key sales regions surpassing the market average.
The Infrastructure Solutions Group achieved a record quarterly revenue of $5.2 billion in the third quarter, with operational performance improving compared to the previous quarter. Demand for AI servers remained robust, with revenue achieving high double-digit year-on-year growth, supported by a strong project pipeline of $15.5 billion. Furthermore, the group expanded its customer base, driving cloud infrastructure business revenue to a new high. Neptune liquid cooling revenue experienced hyper-growth.
The Solutions and Services Group maintained strong growth momentum, with revenue increasing 18% year-on-year, marking the 19th consecutive quarter of double-digit revenue growth. The operating profit margin reached 22.5%, nearing a historical high. Benefiting from accelerated growth in TruScale Device-as-a-Service and Infrastructure-as-a-Service, along with significant customer expansion, the share of operational services, projects, and solutions within the group's total revenue increased to 59.9%.
In enterprise intelligence, the group maintains a long-standing leadership position in high-performance computing. Its business spans infrastructure, data, and comprehensive services and solutions, enabling sustainable long-term growth across the entire AI industry value chain.
Driven by strong revenue growth and stringent working capital management, operating cash flow for the third fiscal quarter reached $952 million. Free cash flow rose to $451 million, providing solid support for the growth plans and capital expenditures of all business groups. Adjusted net finance costs decreased year-on-year, reflecting effective liquidity and working capital management, as well as lower market interest rates.