Press note. Lenovo Group Limited (HKSE: 992) (ADR: LNVGY), along with its subsidiaries (“the group”), today announced excellent financial results during the first quarter of fiscal year 2025/26, reporting a significant growth in the revenues and benefits of the group at a general level. Income increased by 22% year -on -year to 18.8 billion dollars, while net income grew 108% compared to the same period of the previous year, to reach 505 million dollars. Based on the standards of financial reports outside Hong Kong (no HKFRS (1)), the net profit grew by 22% year -on -year up to 389 million dollars, adjusted for a fair gain of non -monetary items related to guarantees (2).
All the main business groups registered a solid increase in two -digit income with respect to the past year. The PCs business He reported especially positive results, with the highest year -on -year income growth rate in 15 consecutive quarters and a historical maximum in terms of 24.6%market share. The group of diversified growth of the group continues to function optimally and the mixture of income not related to PCs increased almost half a point with respect to the same period of the previous year, to reach 47%. All geographical regions obtained an interannual increase in high or relatively high income. These results reinforce Lenovo’s ability and commitment to maintain his competitiveness, market share and profitability to the complex external environment.
There have been three strategic factors that have promoted them. First, the solid execution of the group with respect to its vision of a hybrid has allowed us to take advantage of unprecedented opportunities in the field of AI. Secondly, a continuous investment commitment in innovation has led to increase in R&D by 10% with respect to the same period of the previous year, supporting the progress of the group towards the long -term objective of creating twins of personal and business. And thirdly, operational excellence, including an ODM+ unique manufacturing model, with a very balanced global sales network and a global/local model that combines the supply and global resources with local execution and delivery.
The combination of these factors gives the group maximum flexibility and resilience to successfully navigate market cycles and geopolitical uncertainty. Like the future, Lenovo maintains its commitment to continue offering revolutionary innovations for its clients, generating greater returns for shareholders and creating a lasting value for their collaborators and communities throughout the world.
Group of smart devices
- IDG general revenues increased almost 18% year -on -year to reach 13.5 billion dollars, with the PCs and smart devices reporting an increase in revenue of 19% with respect to the same period of the previous year, the fastest rate in the last 15 quarters. All geographical regions recorded two -digit year -on -year growth in PCs and smart devices.
- The PCs and Smart Devices business maintained its leadership of the sector in terms of profitability, with an operating benefit greater than 8% thanks to the extraordinary performance of segments with high margins.
- The leadership of the PCs market was reinforced by a historical market share, of 24.6%, with an increase in the difference with the second operator.
- The penetration of the PCs IA has accelerated and currently represents more than 30% of all shipments of PCs Lenovo. Lenovo is located as a global number 1 in the Windows PCs segment, with a market share of 31%.
- Income by smartphones Increased 14% year -on -year up to 2.2 billion dollars and the sales volume exceeded the market average for eighth consecutive quarter. In markets outside China, the market share of smartphones It reached a historical maximum and the success of the RACE terminal allowed Motorola to reach the first position in terms of folding devices (flip y fold) With a market share greater than 50%.
- Looking ahead, IDG will continue to create devices with native agents of various formats, while enriching the application ecosystem for the AI Super-agents to increase collaboration between users and agents. This “an AI strategy, multiple devices”, seeks to position devices with native agents such as the point of entry for personal AI.
Infrastructure solutions
- ISG obtained extraordinary growth of benefits, with 36% year -on -year until reaching 4.3 billion dollars, thanks to the solid execution of its dual CSP strategy (Cloud Service Provider or cloud service provider) and E/SMB (Enterprise and SMB or large companies and SMEs).
- Increased investment in AI E+D infrastructure, as well as the improvement of E/SMB competitiveness, even though profitability was affected in the short term.
- The income of the AI infrastructure business was more than duplicate with respect to the same period of the previous year, with a robust development portfolio and a very clear road map of new products for the future. Income from liquid cooling solutions, market leaders, grew by 30% year -on -year.
- Looking ahead, ISG will maintain its commitment to invest in promoting long -term growth and value through a strategic market expansion, transformation of the E/SMB business model, and innovation and development of AI infrastructure products, to stay ahead of the AI curve and provide a differentiated global competitiveness. The group is confident that ISG will not only maintain its growth in the medium and long term, but will obtain a return from even more solid profitability.
Solutions and services
- SSG registered another quarter with income record, with a 20% year -on -year growth to 2.3 billion dollars, which constitutes 17 consecutive quarters of year -on -year growth of income.
- The operating margin climbed 1.2 points with respect to the same period of the previous year, up to 22%, turning SSG into the main group of benefits of the group in general, thanks the sustainable expansion of its margins.
- Support services registered two -digit year -to -income growth after taking advantage of hardware market demand and focusing on adding services premiumcomo Premium Care y Premier Support Plus.
- The managed services and “as-service” offer, as well as the segment of projects and solutions, grew even faster. Truscale infrastructure-how-service reported an interannual growth of three digits in new hiring, while truscating device-how-service obtained a two-digit growth during this quarter. The combined mixture has grown three interannual points, until 58% of SSG’s total revenues.
- The solutions promoted by IA have earned inertia, especially in the manufacturing and supply chain sectors.
- Like the future, Lenovo will continue to expand its Lenovo Hybrid AI Advantage as a key differentiator and will seek to focus on solutions for digital work spaces, hybrid cloud and sustainability solutions, while building simple and scalable vertical solutions to solve the most pressing needs of customers.
