Press release. Lenovo has announced financial results for the third quarter of fiscal year 2025/26, a period in which it has recorded a income recordhas accelerated profitability and continued to grow AI revenue. During this period, the Group’s overall revenues have reached an all-time high of $22.2 billion in a single fiscal quarter, an increase of 18% year-on-year, and revenues from all business groups have experienced double-digit growth compared to last year.
Excluding non-cash impact non-operating items and one-off gains and charges during the third quarter of fiscal years 24/25 and 25/26, adjusted net profit (profit attributable to shareholders – non-HKFRS) increased 36% year-on-year to $589 million, while adjusted net profit margin rose to 2.7%.
These results are proof of the Group’s ability to deliver on its promise of achieving a double-digit growth and sustained profitabilitywhile demonstrating its ability to navigate cycles by leveraging innovation to drive growth and operational excellence to manage volatility. AI has become a leading multi-year growth driver for the Group, as revenue related to this technology has increased by 72% compared to the previous year. At the moment represent almost a third (32%) of total revenues of the Group, driven by strong demand for AI devices, infrastructure, services and solutions. The quarter has been characterized by strong revenue growth, fueled by the expansion of market leadership in PCs and Smart Devices, a record in smartphone volume and activation and an all-time high in revenues for both the Infrastructure Solutions Group and the Solutions and Services Group.
To better capture the multi-year demand for AI training and long-term growth in AI inference, the Group undertook a strategic restructuring of its ISG business, which has resulted in a one-off restructuring charge of $285 million in this third quarter of FY25/26. This optimization of the cost structure, simplification of the product portfolio and strengthening of the sales organization is expected to generate recurring annual savings in excess of $200 million over the next three years and accelerate ISG’s transformation towards profitable and sustainable growth.
Lenovo Results Summary
- Smart Devices Group: Exceptional performance, with overall IDG revenue increasing 14% year-over-year to $15.8 billion, while maintaining industry-leading profitability. PC market share for the calendar year has been the highest in Lenovo’s history, reaching 24.9%.
- Infrastructure Solutions Group: Record quarter, with revenue increasing 31% year-on-year, to $5.2 billion. Strong inertia across the business, driven by record revenue from cloud service provision. AI server business revenue achieved double-digit year-over-year growth, with a robust product pipeline of $15.5 billion.
- Solutions and Services Group: SSG’s overall revenue increased 18% year-over-year to $2.7 billion, marking 19 consecutive quarters of year-over-year revenue growth. The operating margin increased 2.1 points compared to the previous year, exceeding 22%. Growth acceleration was recorded in vertical sectors, including manufacturing, retail, sports, transportation and smart cities.
“During this fiscal third quarter, Lenovo has delivered extraordinary performance on all fronts. All core businesses have recorded double-digit revenue growth and AI has emerged as a powerful growth driver. “We have implemented a strategic restructuring of our Infrastructure Solutions business, to set it on a secure path towards sustainable and profitable growth.”said Lenovo President and CEO Yuanqing Yang.
