TLDR
- Lenovo posted record quarterly revenue of $26.9 billion, up 43% year-on-year, crushing the $22.3 billion analyst estimate
- Adjusted net income surged 176% to $1.1 billion, crossing that threshold for the first time
- AI-related revenue hit $9.3 billion, up 60% year-on-year, representing 35% of total group revenue
- The Infrastructure Solutions Group nearly doubled revenue to $8.5 billion, with the AI server pipeline expanding to $54 billion
- Hong Kong-listed stock jumped 20.25% to HK$34.92 on the earnings news
Lenovo’s stock surged 20% in Hong Kong trading on Thursday after the company reported its strongest quarter on record, with revenue of $26.9 billion for the three months ended June 30. Hong Kong-listed stock hit HK$34.92 by early morning in Europe.
The result blew past the analyst consensus of $22.3 billion. The 43% year-on-year jump in revenue came alongside adjusted net income of $1.1 billion, up 176% from the same period last year and the first time Lenovo has crossed the $1 billion adjusted profit mark in a single quarter.
Lenovo +20%, best earnings reaction since 2009
– Record qtrly revenue +43% YoY to $27B
– Adj net-profit tripled to $1B
– Data-center revenue nearly doubled
– AI-related biz reached 35% of total rev
– AI server pipeline doubled, hitting $54B
– Expects $100B+ in annual rev this FY pic.twitter.com/XzvzDnnowl— Wall St Engine (@wallstengine) August 13, 2026
AI-related revenue reached $9.3 billion, a 60% increase year-on-year. That figure now accounts for 35% of total group revenue.
Infrastructure Group Nearly Doubles
The Infrastructure Solutions Group, covering servers and data center hardware, was the standout performer. Revenue rose 98% year-on-year to $8.5 billion. Operating profit for the unit came in at $777 million, with operating margin at 9.1%.
The AI server pipeline expanded to $54 billion, a 157% increase from the prior quarter. Lenovo also expanded its server manufacturing facility in North Carolina during the quarter to handle rising demand from cloud and enterprise customers.
The Intelligent Devices Group posted revenue of $17.1 billion, up 27% year-on-year. Lenovo’s global PC market share reached 24.2%, putting it more than five percentage points ahead of its nearest competitor. AI PC market share came in at 25.1%.
Services Segment Delivers Too
The Solutions and Services Group brought in $2.9 billion in revenue, up 28% year-on-year. Operating margin for that unit reached 24.2%. AI services revenue within the segment grew at a triple-digit rate compared to the same quarter a year ago.
CEO Yuanqing Yang said the results reflect Lenovo’s strategy across personal and enterprise AI. “Building on our leadership in PCs and Smart Devices, we are proud of our rapid emergence as a global leader in AI and Infrastructure,” he said.
On a reported net basis, the quarter showed a $609 million loss, reversing the $505 million profit from a year earlier. Analysts had projected an average net loss of $589 million, so the result was slightly worse than expected on that measure.
Lenovo said it is confident in reaching its $100 billion revenue target ahead of schedule. The AI server pipeline of $54 billion, up 157% quarter-on-quarter, was one of the headline numbers investors focused on Thursday morning.
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