February 12, 2026 – LENOVO GROUP (HKSE: 992) (ADR: LNVGY), a global leader in the AI ecosystem, today announced its financial results for the third quarter of fiscal year 2025/26, ended December 31, 2025. The Group's revenue reached RMB 157.5 billion, an increase of over 18% year-over-year, significantly exceeding market consensus and setting a new historical record. Adjusted net profit grew by 36% year-over-year, far surpassing market expectations, with profit growth doubling the rate of revenue growth. This demonstrates Lenovo's resilience and ability to consistently deliver on its commitments amidst a complex environment.

Lenovo's Chairman and CEO, Yang Yuanqing, provided a deep analysis of the Q3 results. In the past quarter, the global AI industry chain faced multiple challenges, including rapidly rising prices of key components like memory chips, increased supply-demand volatility, and questions regarding the sustainability of the AI cycle. Lenovo not only fulfilled its clear commitment to the market of "double-digit revenue growth and profitability" but also, leveraging its comprehensive advantages in supply chain management, operational capabilities, and overall resilience, responded directly to external concerns with a report card that proves it delivers on its promises.

All three of the Group's business groups achieved strong double-digit growth this quarter. The Intelligent Devices Group (IDG) reported revenue exceeding RMB 110 billion, up 14.3% year-over-year, maintaining industry-leading profitability. PC shipment growth outpaced the market for the tenth consecutive quarter, driving the full-year 2025 market share to a record high. The Infrastructure Solutions Group (ISG) achieved revenue of RMB 36.7 billion, an increase of over 31% year-over-year, reaching a new record and moving closer to profitable growth. The Solutions and Services Group (SSG) saw revenue grow 18% year-over-year, marking the nineteenth consecutive quarter of double-digit growth, while its operating margin further improved to 22.5%, providing solid support for the Group's overall profitability.

Simultaneously, AI-related businesses have become a major growth engine for Lenovo. In Q3, Lenovo's AI-related revenue grew 72% year-over-year, increasing its proportion of total Group revenue to 32%. Within this, AI PC revenue achieved high double-digit growth, AI smartphone revenue saw triple-digit growth, AI server revenue achieved high double-digit growth, and AI services revenue also experienced triple-digit growth, propelling the continuous evolution of the Group's business structure towards higher value.

From a longer-term perspective, the global AI industry is transitioning from its first phase, dominated by centralized training, to a second phase centered on inference, which is closer to real-world personal and enterprise scenarios. Industry value is concentrating towards "AI super gateway" companies capable of integrating computing power, devices, infrastructure, and services.

In this AI-driven industrial leap, the computing industry itself is undergoing unprecedented restructuring. Following the acceleration computing revolution, the rapid iteration of Agent applications is disrupting the software industry, and the deep integration of hardware and software is becoming the main theme of industrial development. Computing power is no longer just a backend resource but is being directly embedded into end devices and industry scenarios, reshaping how technological value is distributed.

Under this trend, 2026 is poised to be the "Year of the AI Hardware Explosion." Key shifts are occurring in the form of computing gateways, the level of device intelligence, and the allocation of computing power. As the world's largest PC manufacturer, Lenovo is at the forefront of this wave of end-device computing power restructuring. From AI PCs to AI phones, and on to AI servers and edge infrastructure, end devices are no longer just computing tools but core nodes connecting cloud intelligence with real-world applications, further solidifying Lenovo's pivotal role in the global AI ecosystem.

This indicates that Lenovo's strong performance this quarter is not an isolated spike but a phased result of the systematic implementation of its Hybrid AI strategy and the continuous expansion of its capability system.

In the personal intelligence domain, Lenovo is betting on the disruptive opportunity of Personal AI Twins and building differentiated competitive barriers with its super agent. In Q3, Lenovo officially launched its super agent, Lenovo Qira, marking a key step towards building a unified AI terminal gateway across platforms and devices. Devices embedded with Qira are expected to hit the market soon. During this process, Lenovo continues to consolidate its global leadership in AI PCs and expand its AI device installed base, building the broadest possible gateway foundation for personal super agents.

In the enterprise intelligence domain, under the framework of its Hybrid AI advantage set, Lenovo is helping enterprises build corporate super agents to unlock AI's business value. In Q3, Lenovo's enterprise intelligence layout covered four key layers: AI application libraries, AI technology platforms, AI infrastructure, and AI services. The company not only officially launched the Lenovo xIQ technology platform to create a core AI technology foundation for enterprises but also jointly launched the AI Cloud Superfactory plan with NVIDIA and began deliveries of new-generation GPU servers. At the service layer, Lenovo's end-to-end AI services continued to scale, indicating that enterprise AI is accelerating from the pilot phase towards commercial deployment at scale.

In January, Lenovo hosted its largest-ever Tech World event during CES. Tech leaders including NVIDIA founder and CEO Jensen Huang, Intel CEO Dr. Lip-Bu Tan, AMD Chair and CEO Dr. Lisa Su, and Qualcomm President and CEO Cristiano Amon attended. At this tech showcase, Lenovo announced the next phase of its Hybrid AI strategy. Looking forward, Lenovo will continue to advance Hybrid AI to capture the opportunities brought by the democratization of AI.

Lenovo delivered a comprehensively outstanding report card for the third quarter, with all main businesses achieving strong double-digit growth and AI becoming a major growth engine. We strategically reorganized our Infrastructure Solutions Group to pave the way for long-term, sustainable, profitable growth. We leveraged our foundation of excellent operations to navigate challenges like rising component costs and supply shortages, fulfilling our commitment to simultaneously grow market share and profitability. As AI deeply integrates into personal daily life and enterprise operations, we will continue to advance Hybrid AI to seize the opportunities from AI democratization, accelerate growth, further improve profitability, and create long-term, sustainable, tangible returns for shareholders. - Yang Yuanqing, Chairman and CEO of LENOVO GROUP

**Performance Highlights:** 1. Revenue reached a record high of RMB 157.5 billion, up over 18% year-over-year. 2. Adjusted net profit grew 36% year-over-year, with profit growth doubling revenue growth. 3. AI-related revenue grew 72% year-over-year, increasing its share of total revenue to 32%. 4. All three business groups achieved strong double-digit growth. 5. IDG revenue exceeded RMB 110 billion, up over 14% year-over-year. 6. PC shipment growth outpaced the market for ten consecutive quarters; full-year 2025 market share reached a record 24.9%. 7. Motorola smartphone shipments and device activations hit record highs. 8. ISG revenue grew over 31% year-over-year, moving closer to profitable growth. 9. SSG revenue increased 18% year-over-year, with an operating margin exceeding 22%.

**IDG: Revenue Over RMB 110 Billion, Up Over 14% - Achieving Above-Market Growth Amid Industry Volatility** The global PC market continues its recovery, with shipment performance generally better than initial market expectations for the year. According to the latest IDC statistics, global PC shipments in Q4 2025 grew nearly 10% year-over-year, reaching approximately 76.4 million units, driven by corporate refresh demand and the Windows 10 upgrade cycle. In the smartphone market, global shipments in Q4 2025 grew 2.3% year-over-year to 336.3 million units, supported by sustained growth in premium models, strong performance of foldables, and consumers upgrading early due to potential price increase expectations.

Concurrently, both the PC and phone industries face challenges from intensified price fluctuations of core components, potential changes in tariff policies, and supply chain instability. Overall, the industry is entering a period where "demand release intertwines with supply disruptions," putting greater emphasis on manufacturers' operational capabilities and supply chain resilience.

At CES 2026, Lenovo won a record 212 awards for innovations including rollable screen concept products, the super agent Lenovo Qira, and the moto razr fold large foldable phone. Continuous innovation enables Lenovo to consistently deliver above-market results.

Against this backdrop, Lenovo's IDG delivered above-market results with growth significantly outpacing the industry. In Q3, IDG achieved revenue exceeding RMB 110 billion, up over 14% year-over-year. Despite rapidly rising core component costs, IDG's adjusted operating profit for the quarter grew over 15% year-over-year, maintaining industry-leading profitability and growth quality.

The PC business performed particularly well. In Q3, Lenovo's PCSD (PC and Smart Devices) business further consolidated its "full-portfolio leadership," with PC shipments growing 15% year-over-year, outperforming the market for the tenth consecutive quarter. Its global PC market share increased to 25.3%, extending the gap with the second-place vendor to 5.2 percentage points for the eighth straight quarter. The full calendar year 2025 market share reached 24.9%, setting a new record in IDC's statistics. Amid an environment of both demand pull-forward and cost pressures, the pre-tax margin for the PC business improved further year-over-year, marking the tenth consecutive quarter of improvement.

At CES 2026, Lenovo officially launched the large foldable phone, moto razr fold. In Q3 FY25/26, Motorola phone shipments hit a record high, growing 9% year-over-year.

The MBG (Mobile Business Group) also demonstrated a more stable growth trajectory. In Q3, Motorola smartphone shipments reached a record high, increasing 9% year-over-year, significantly above the industry average. Device activations also set a new record.

These multiple record-breaking performances reflect the structural opportunities from industry reshuffling caused by supply-demand imbalances and highlight Lenovo's strong market competitiveness throughout complex market cycles. Leveraging scale advantages, long-term stable supplier relationships, and a highly resilient global supply chain, Lenovo can manage supply constraints and cost increases more effectively than competitors, securing key supplies at the right time and reasonable cost.

Meanwhile, AI continues to be a core growth driver for IDG. In Q3, Lenovo's AI PC revenue achieved high double-digit growth, with an average selling price significantly above the industry average, providing structural support for profitability. Lenovo is also continuously expanding its personal intelligence gateway across multiple devices: by the end of Q3, PCs and smartphones each accounted for approximately half of the global activations of Lenovo and Motorola AI devices. As the super agent Qira is gradually pre-installed and scaled, the flywheel effect of Lenovo's personal intelligence ecosystem is expected to amplify further.

**ISG: Record Revenue Combined with Strategic Reorganization - Moving Towards Sustainable Profitability** As AI accelerates from the centralized training phase to the scaled inference and industry deployment phase, global demand for AI infrastructure continues to expand. IDC predicts the global server market size could reach $366 billion in 2025, up 44.6% year-over-year, with GPU-equipped AI server growth expected at 46.7%, becoming the core growth engine driving market expansion. The accelerated commercialization of generative AI applications is prompting both enterprises and cloud service providers to increase computing power capital expenditure simultaneously, creating a "twin-engine" demand pattern for both training and inference infrastructure.

At this critical stage of industry cycle transition, Lenovo's ISG, leveraging Hybrid AI infrastructure as a fulcrum, delivered high-speed growth. In Q3, ISG achieved revenue of RMB 36.7 billion, an increase of over 31% year-over-year, setting a new historical record. Concurrently, ISG is enriching its customer mix, deepening business model transformation, and strengthening operational capabilities, pushing the business further towards a track of profitable growth.

Analyzing the business structure, the Cloud Service Provider (CSP) business continued to benefit from expanding AI training demand, maintaining a high-growth trajectory. The Enterprise/SMB (E/SMB) infrastructure business saw revenue growth while achieving continuous gross margin improvement through optimized pricing management and enhanced operational efficiency. Regionally, ISG's China business achieved a key breakthrough, with enterprise infrastructure becoming a significant contributor to profits.

Amid expanding global AI infrastructure demand, at the latest Lenovo Tech World, Lenovo's Chairman and CEO Yang Yuanqing and NVIDIA founder and CEO Jensen Huang announced the "Lenovo AI Cloud Superfactory" cooperation plan.

Notably, AI server revenue maintained rapid growth this quarter, with a substantial order backlog, making it one of ISG's core growth engines and laying the foundation for future quarter deliveries and profit improvement. In Q3, Lenovo's AI server business achieved high double-digit revenue growth and holds a robust order backlog of $15.5 billion. On the inference side, Lenovo deployed its first rack-scale solution based on GB300 NVL72 and simultaneously enhanced its product portfolio, launching inference-optimized products including the AI inference servers SR675i and SR650i, and the edge computing server SE455i, covering multi-tier inference application scenarios from data centers to the edge. With the accelerated emergence of new cloud models like NeoCloud and the continuous release of enterprise inference demand, further growth space for AI infrastructure is opening up. Meanwhile, the Neptune liquid cooling technology business grew 300% year-over-year, further consolidating Lenovo's technological leadership in high-efficiency AI infrastructure.

Crucially, ISG's current performance improvement is not a one-time rebound but a structural change built on product portfolio optimization, delivery efficiency improvements, and the realization of scale effects. As the focus of AI computing shifts from public cloud training to on-premise data centers and edge inference, and to better capture industry trends and accelerate business transformation, ISG initiated a strategic reorganization in Q3. This involves optimizing the cost structure to enhance productivity, adjusting the product portfolio to address market opportunities, and upgrading team skills to boost competitiveness. This reorganization is expected to yield annual net cost savings of approximately RMB 1.4 billion over the next three years, driving continuous profit improvement and paving a clear path for ISG to enter a long-term, sustainable, profitable growth trajectory.

**SSG: Record Highs in Revenue and Profit - AI Services Enter Period of Accelerated Returns** As AI moves from the technology deployment phase to the value realization phase, the global IT services and AI solutions market is experiencing a new wave of structural expansion. Gartner expects global IT spending to reach approximately $6.1 trillion in 2026, up about 9.8% year-over-year, with IT services spending projected to be $1.87 trillion, becoming the core carrier for enterprise AI implementation. Concurrently, IDC notes that global enterprises are expected to invest $307 billion in AI solutions in 2025, a figure projected to surge to $632 billion by 2028.

Amid this industry trend, Lenovo's SSG continues to deliver high-quality, profitable growth. In Q3, SSG revenue grew 18% year-over-year, and adjusted operating profit increased nearly 30% year-over-year, both hitting new records and further pushing the operating margin to 22.5%. Within this, AI services revenue achieved triple-digit growth, signaling that Hybrid AI solutions are transitioning from the pilot exploration phase to scaled replication.

Looking at the revenue structure, SSG is accelerating its evolution towards higher value-added service models. In Q3, the proportion of revenue from non-hardware attached support services, and projects and solutions business increased to approximately 60%. In the projects and solutions business, SSG continues to build replicable industry application scenarios focused on five key verticals—manufacturing, retail, sports, transportation, and smart cities—helping customers build enterprise-grade super agents to achieve accelerated growth.

As the Official Technology Partner of FIFA, LENOVO GROUP will leverage its full-stack AI devices, services, and solutions as a technological foundation, comprehensively covering three key areas: intelligent event operations, enhanced global fan experiences, and the promotion of football.

Simultaneously, the "as-a-Service" model continues to unleash growth momentum. In Q3, SSG's support services and "as-a-Service" businesses maintained double-digit growth, with operating margins also improving year-over-year. Specifically, TruScale DaaS (Device-as-a-Service) revenue grew 32% year-over-year, while IaaS (Infrastructure-as-a-Service) maintained strong growth of 57%. The jointly built AI Cloud Superfactory plan with NVIDIA continues to gain market attention, building a sustainable foundation for service revenue for Lenovo.

Standing at the industry inflection point of the accelerating formation of the AI inference economy, enterprise demand for on-premise inference, industry models, agents, and end-to-end solutions is continuously being released. With its comprehensive capabilities spanning industry solutions, support services, and "as-a-Service," Lenovo's SSG is positioned at the core intersection of enterprise intelligence super scenarios. As the proportion of AI service revenue continues to increase and solution replication capabilities strengthen, SSG is poised to continuously enhance customer stickiness and profitability through its "beyond hardware" services and leading solutions.

* USD amounts for Q3 FY2025/26 in this report are converted to RMB at the average exchange rate for Q3 FY2025/26, specifically RMB 1 to USD 0.141020267. This rate should not be used for any other period.