Lenovo Group delivered a blockbuster fiscal year, reporting record annual revenue and sharply higher profit driven by surging demand for AI servers, AI-enabled PCs, and enterprise services.
The world’s largest PC maker posted revenue of $83.1 billion for the fiscal year ended March 31, representing a 20% increase from the prior year period.
Profit attributable to shareholders climbed 38% to $1.91 billion, comfortably exceeding market expectations and signaling strong operational momentum across all major business segments.
Fourth-quarter results were particularly striking, with quarterly revenue hitting $21.6 billion, up 27% year-on-year and marking the fastest quarterly growth rate the company has recorded in five years.
Net profit for the quarter surged to $521 million, a 479% jump from $90 million in the same period a year earlier, reflecting dramatically improved margins and a favorable product mix.
Hong Kong-listed Lenovo shares surged 18% to HK$18.7, marking a record high for the stock and extending gains after a 20% rally on Friday following the company’s earnings release.
The Infrastructure Solutions Group, Lenovo’s division building AI-optimized servers, storage systems, and data center products for clients including Amazon, Microsoft, and Google, posted record quarterly revenue of $5.6 billion, up 37% year-on-year.
The infrastructure unit crossed $19.2 billion in full-year revenue and returned to full-year profitability, powered by relentless enterprise appetite for AI computing hardware across cloud and on-premise deployments.
Lenovo said AI-related revenue rose 105% during the year and accounted for one-third of total group revenue, underscoring how central artificial intelligence has become to the company’s overall growth strategy.
The company’s AI server business pipeline now stands at $21 billion, with more than 5,800 customer AI deployments already underway, suggesting the revenue trajectory has considerable room to extend further.
The Intelligent Devices Group, Lenovo’s core PC and smartphone business, posted 17% annual revenue growth, while global PC market share reached a record 24.4% in the fourth quarter.
Resilient consumer demand combined with aggressive market share gains helped counterbalance anticipated price hikes caused by a memory-chip shortage that has pressured the broader technology hardware industry.
DBS elevated its price objective for Lenovo to HK$23.50 from HK$19.00, reflecting growing analyst confidence in the company’s ability to sustain its AI-driven growth trajectory throughout 2026.
The board proposed a final dividend of HK33.7 cents per share, up from HK30.5 cents a year earlier, rewarding shareholders as the company capitalizes on the global buildout of AI infrastructure.
