Lenovo Reports Record Second Quarter Results for Fiscal Year 2025/26
In a significant development for the global technology sector, Lenovo Group Limited has announced record-breaking financial results for the second quarter of its fiscal year 2025/26. The group’s total revenue reached an unprecedented $20.5 billion, marking a 15% increase compared to the previous year. This impressive growth underscores Lenovo’s robust operational performance and strategic foresight.
Financial Performance Highlights
Lenovo’s adjusted net income saw a substantial 25% year-over-year increase, totaling $512 million. The adjusted net income margin also expanded to 2.5%. These figures, which exclude non-cash items such as fair value losses on warrants and notional interest on convertible bonds, highlight the group’s efficient operational management.
The company’s revenue growth spanned all major business units and geographic regions. A noteworthy 13 percentage point increase in AI-related revenues contributed to a 30% share of the total revenue for the quarter. This growth was primarily driven by significant advances in AI Servers and triple-digit revenue increases in AI PCs, smartphones, and services.
Strategic Vision and Market Leadership
Lenovo’s strong performance is a testament to its strategic clarity, operational excellence, and innovative spirit. The company’s unique ‘Global/Local’ business model has proven resilient, positioning it as a leader in the rapidly evolving AI landscape. In the current phase of AI development, the focus is shifting towards personalization and private domain applications, presenting new opportunities for Lenovo to expand its market leadership.
As the global economic landscape stabilizes, Lenovo is committed to executing its Hybrid AI strategy. This approach emphasizes personalized AI solutions and long-term shareholder returns. The board of directors has declared an interim dividend of 8.50 HK cents per share, reflecting the company’s strong financial health and shareholder commitment.
Personal AI Strategy: Revolutionizing Consumer Technology
Lenovo is capitalizing on growing consumer demand for personalized technology through its ‘One Personal AI, Multiple Devices’ strategy. Set to launch globally at Tech World on January 6, 2026, Lenovo’s Personal AI super agent aims to provide seamless integration across various devices, ultimately creating a Personal AI Twin that learns and adapts to user preferences.
The Intelligent Devices Group (IDG), a core component of Lenovo’s Personal AI strategy, reported a nearly 12% increase in revenue, totaling $15.1 billion for the quarter. Lenovo has strengthened its position as a leader in the PC market, achieving a record 25.6% market share. Notably, AI PCs now account for 33% of all Lenovo PC shipments, with the company leading the global Windows AI PC segment at a 31.1% market share. The surge in AI device revenue, which increased by 17 percentage points year-on-year to 36%, is particularly encouraging.
Enterprise AI: Driving Transformation with Hybrid Solutions
Lenovo’s Enterprise AI strategy focuses on transforming data into actionable insights for its clients. The company is advancing its position in the AI market by shifting from cloud-based AI training to on-premises and edge inferencing, which is expected to drive growth in AI devices and applications.
The Infrastructure Solutions Group (ISG) played a pivotal role in this strategy, reporting a 24% year-on-year revenue increase to $4.1 billion. This growth is attributed to the successful execution of its dual strategy targeting Cloud Service Providers (CSP) and Enterprise Small and Medium Businesses (SMB). The AI infrastructure business also achieved significant growth, with revenue from industry-leading liquid cooling solutions up 154% year-on-year.
Solutions and Services: Leveraging Lenovo Hybrid AI Advantage
The Solutions and Services Group (SSG) delivered consistent growth, with an 18% year-over-year revenue increase to $2.6 billion. This marks the 18th consecutive quarter of revenue growth for SSG. The group’s operating margin improved by 1.9 percentage points year-on-year, reaching over 22%. Revenue from support services saw double-digit growth, and the revenue mix from managed services and projects increased by one percentage point to nearly 60% of total SSG revenue.
SSG is harnessing the Lenovo Hybrid AI Advantage by combining AI services, an AI factory, and an AI library of scalable solutions for various industries. This comprehensive approach positions Lenovo to meet the diverse needs of its enterprise customers.
Corporate and ESG Initiatives
Lenovo continues to prioritize corporate social responsibility and environmental sustainability. The company remains committed to building a more equitable and sustainable future, reflecting its broader vision of delivering smarter technology for all.
Conclusion
Lenovo’s record financial performance for the second quarter of fiscal year 2025/26 underscores its strategic acumen and operational strength. By leveraging cutting-edge AI technologies and a unique business model, Lenovo is well-positioned to lead the industry into the future. As the company continues to innovate and expand its market presence, it remains focused on delivering value to shareholders and providing personalized AI solutions to consumers and enterprises worldwide.
For more information about Lenovo and its latest developments, visit Lenovo’s official website.
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