Lenovo Group Reports Record Revenue of 589.9 Billion, Net Profit Surges 42.1% as Hybrid AI Monetization Begins

On May 22, Lenovo Group released its financial results for the fourth quarter and the full 2025/26 fiscal year. The strong performance directly countered earlier market concerns that heavy AI investment by tech giants would erode profits through rising capital expenditures. Instead, it demonstrated with concrete data the commercial viability of Lenovo's hybrid AI strategy.

The report showed that Lenovo not only exceeded market expectations but also delivered the best fiscal year performance in the company's history.

Key Performance Highlights:

Full-Year Total Revenue: Reached 589.9 billion yuan (83.1 billion U.S. dollars), up 20.3% year-over-year, crossing the 500 billion yuan mark for the first time and approaching 600 billion yuan.

Adjusted Net Profit: Reached 14.55 billion yuan (2 billion U.S. dollars), up 42.1% year-over-year, growing at roughly twice the rate of revenue.

Fourth Quarter Surge: Quarterly revenue reached nearly 150 billion yuan, up 27.1% year-over-year, marking the highest growth rate in 20 quarters. Adjusted net profit for the quarter doubled compared to the same period last year.

AI as the Core Growth Driver: Full-Year AI Revenue Jumped 105%

Over the past two years, global AI competition largely centered on large language model parameters and training. By 2026, the industry shifted into a system-level race defined by surging inference demand and widespread deployment of intelligent agents. Lenovo, through its "from pocket to cloud" hybrid AI strategy, has taken an early lead in making AI more accessible and widely adopted.

AI Revenue Doubled: Across the full fiscal year, Lenovo's AI-related businesses—including AI PCs, AI phones, AI servers, and AI services—saw revenue surge by an impressive 105% year-over-year.

Nearly 40% Revenue Share in One Quarter: In the fourth fiscal quarter alone, AI-related businesses contributed 38% of total revenue, rising nearly six percentage points from the previous quarter. AI has evolved from a new business line into a core profit engine for the company.

All Three Business Groups Expanded Together: Delivering on Promises

Addressing earlier concerns about rising component costs, consumer electronics cycles, and infrastructure losses, all three of Lenovo's business segments—IDG, ISG, and SSG—posted double-digit growth in the fourth quarter, meeting their commitments to the capital market with solid results.

1. IDG (Intelligent Devices Group): PC Market Share Hit a Record High, Strengthening the Personal AI Gateway

Performance: Annual revenue reached 418.5 billion yuan, up 17% year-over-year.

PC Leadership: In the fourth quarter, Lenovo's PC shipment growth outpaced the industry average by 5.6 percentage points, pushing global market share to a historic high of 24.4%—the largest gap over the second-place vendor in 15 years.

Premium Mix: In the fourth quarter, premium PC shipments accounted for 50% of total volume. Meanwhile, Motorola's foldable phone products ranked first globally, with high-end models making up 19% of shipments.

AI Outlook: Lenovo has officially launched the Tianxi 4.0 architecture and the new Agent core "Tianxi Claw." Its super intelligent agent, Lenovo Qira, is rapidly expanding to more native devices.

2. ISG (Infrastructure Solutions Group): Successfully Returned to Profitability, AI Server Demand Strong

Performance: Annual revenue reached 136.2 billion yuan (19.2 billion U.S. dollars), up 32% year-over-year, and the group achieved full-year profitability, returning to a sustainable growth trajectory.

Momentum Surge: Driven by strong enterprise AI inference demand, Lenovo's AI server revenue posted high double-digit growth throughout the year. By year-end, Lenovo's AI server order backlog had grown significantly to 21 billion U.S. dollars (approximately 140 billion yuan). In the fourth quarter, Lenovo's NVIDIA GB300 NVL72 platform had already shipped in volume.

3. SSG (Solutions and Services Group): Extended Double-Digit Growth to 20 Consecutive Quarters

Performance: Annual revenue surpassed 71 billion yuan, up 19% year-over-year.

High-Margin Engine: SSG consistently exceeded its targets, maintaining an operating profit margin of over 20% throughout the year, providing the group with stable cash flow and strong resilience against risks.

Moving Beyond the Traffic Era: A New Revenue Philosophy in the Age of AI

During the earnings call, Yang Yuanqing, Chairman and CEO of Lenovo Group, stated: "Lenovo has closed its best year in history with outstanding performance. With strong momentum across all our businesses, we are confident in our goal of becoming a trillion-yuan company within the next two years."