AI Revenue Growth and Business Performance
Lenovo Group Limited has reported record financial results for the 2025/26 fiscal year, with total revenue reaching US$83.1 billion. This marks a 20% increase compared to the previous year. During the fourth quarter, the Group’s revenue achieved a historic high of US$21.6 billion, which is a 27% increase from the same period last year.
AI-related revenue has become a major growth engine for Lenovo, increasing by 84% year-on-year in the fourth quarter and making up 38% of the Group’s revenue. Throughout the fiscal year, AI revenue doubled, accounting for 33% of the total revenue.
Yuanqing Yang, the Chairman and CEO, remarked, “Lenovo concluded its best year ever with an exceptional fourth quarter, where we delivered on our promises. We returned our Infrastructure Solutions Group to a sustainable and profitable growth trajectory and achieved hyper-growth by capturing the opportunity of the booming AI infrastructure market.”
Business Group Performance
The Intelligent Devices Group (IDG) reported a 24% revenue increase, reaching US$14.6 billion in the fourth quarter while maintaining a 6.9% operating margin. The Infrastructure Solutions Group (ISG) saw remarkable success with a 37% revenue increase, amounting to US$5.6 billion, and record operating profits. Similarly, the Solutions and Services Group (SSG) recorded US$2.6 billion in revenue, reflecting a 19% year-on-year increase.
Lenovo’s operational excellence and strategic investments in AI are positioning the company for continued growth. The Group increased its R&D expenses by 16% year-on-year during the fourth quarter, reaching 3.5% of Group revenue. For the full year, R&D expenses rose by 9%, constituting 3% of total revenue. As a result, Lenovo aims to become a US$100 billion company within the next two years.
The Board of Directors declared a final dividend of 33.70 Hong Kong cents per share for the fiscal year ended March 31, 2026. This move highlights Lenovo’s commitment to delivering strong returns for its shareholders.
Amid a challenging external environment with supply shortages and rising costs, Lenovo demonstrated its resilience. This was achieved through a balanced global business model and increased investment in innovation. The company’s Hybrid AI strategy has also positioned it at the forefront of AI inferencing and democratization. Lenovo’s strong structural resilience is evident in its ability to navigate these challenges effectively.
