Lenovo Group's stock plummeted 5.04% during intraday trading, following the release of its fourth-quarter financial results. The world's largest personal computer manufacturer reported a worse-than-expected 64% decline in profit for the quarter ended March 31, largely due to a non-cash decline in the value of warrants.

Despite the profit decline, Lenovo's revenue for the quarter came in at $16.98 billion, surpassing analysts' expectations of $15.6 billion. The company's core business of PCs, smartphones, and tablets delivered a 13% gain, buoyed by record smartphone revenue and growth in AI computer sales. However, net profit attributable to shareholders fell to $90 million, well below the average analyst estimate of $225.8 million.

The sharp profit decline and missed expectations have raised concerns among investors, overshadowing the company's revenue growth. Lenovo also faces potential headwinds from U.S. tariffs, which could affect product prices and demand in the coming quarters. Despite these challenges, the company remains optimistic about its ability to navigate uncertainties, citing its broad global manufacturing footprint and diverse supply chain as key advantages.