Lenovo significantly exceeded investors’ expectations with a historic record quarter. The stock then rises sharply.
• AI business grows by 84 percent and becomes a key sales driver
• Quarterly sales rise to record $21.6 billion
• Profit and market share increase significantly more than expected
The world’s largest PC manufacturer Lenovo Group achieved historic record sales in the fourth quarter of the 2025/26 financial year. The company benefited primarily from rapidly growing demand for AI-related solutions as well as robust business in the areas of PCs and infrastructure. This fundamental tailwind helped the technology group deliver an exceptional final quarter and at the same time seal the strongest and most successful financial year in the group’s history to date.
Investors reward the strong numbers with a jump in price: Lenovo shares ultimately rose 19.77 percent to HKD 15.75 in trading in Hong Kong. Investors have already had an increase of more than 70 percent in their portfolios since the start of the year.
Massive jumps in revenue thanks to artificial intelligence
In the fourth quarter ended March 31, 2026, revenue increased a significant 27 percent year-over-year to $21.588 billion, marking the company’s highest growth rate in the past five years. The AI-related business – which includes advanced AI devices, GPU servers and tailored AI services – performed particularly strongly, with revenues increasing 84 percent year-on-year. This division has established itself as the primary growth engine and is now responsible for 38 percent of total group sales in the fourth quarter. The Infrastructure Solutions Group (ISG) achieved a milestone: By successfully managing increasing demand in the booming market for AI infrastructure, the segment recorded record sales of $5.6 billion in the quarter and returned to sustainable profitability.
Profitability is skyrocketing and crowns the financial year
Lenovo also increased its profitability noticeably and benefited from its operational resilience in a market environment characterized by component shortages. Adjusted net income rose 101 percent year-on-year to $559 million in the fourth quarter, while unadjusted net income attributable to shareholders jumped 479 percent to $521 million.
For the entire 2025/26 financial year, the group reported record sales of $83.075 billion, which corresponds to an increase of 20 percent. In parallel, Lenovo continued to expand its global market leadership in the traditional PC business, reaching an all-time market share high of 24.4 percent in the fourth quarter, widening the gap to the competition to the largest level in 15 years.
Entry signal for investors?
For investors, Lenovo’s latest figures provide a strong signal that the long-term transformation towards a comprehensive hybrid AI orientation is paying off. The significant increase in sales and profits underlines that the company is no longer a pure PC manufacturer, but has positioned itself as one of the key beneficiaries of the global AI boom. Management’s ambitious goal of increasing sales to $100 billion in the next two years underpins its confidence in its own operational strength. With continuously expanding R&D investments, a solid dividend announcement of 33.70 HK cents per share and increasing margins through higher-value AI solutions, Lenovo shares remain a very interesting core stock in the hardware sector.
Claudia Stephan, editorial team at finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
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