February 12, 2026 – Lenovo Group Restricted (HKSE: 992) (ADR: LNVGY), along with its subsidiaries (‘the Group’), right now reported outcomes for the third quarter of fiscal yr 2025/26, 1 / 4 that delivered report revenues, accelerated profitability, and continued AI income enlargement. Through the quarter, general group income reached an all-time fiscal quarter excessive of US$22.2 billion, up 18% year-on-year, with income from all enterprise teams rising double-digit year-on-year. Excluding non-operating non-cash gadgets and one-time features and costs in Q3 FY24/25 and Q3 FY25/26, adjusted internet earnings (revenue attributable to fairness holders – non-HKFRS)[1] elevated by 36% year-on-year to US$589 million, with adjusted internet earnings margin[1] increasing to 2.7%.
The outcomes exhibit the Group’s means to ship on its promise of double-digit development and sustained profitability, whereas proving its means to handle via cycles by leveraging innovation to drive development and operational excellence to navigate volatility. AI has change into a number one multi-year development engine for the Group, with AI-related income rising 72 % year-on-year to symbolize almost a 3rd (32%) of general Group income, pushed by sturdy demand throughout AI gadgets, infrastructure, companies, and options. The quarter was marked by sturdy topline development, pushed by increasing market management in PCs and Sensible Gadgets, report quantity and activation in smartphones, and all-time-high income from each the Infrastructure Options Group, and Companies and Options Group.
To higher seize the multi-year AI coaching demand and long-term AI inferencing development, the Group undertook a strategic restructuring of its ISG enterprise, leading to one-time restructuring costs in Q3 FY25/26 of US$285 million. The optimized value construction, streamlined product portfolio, and strengthened gross sales group are anticipated to ship annual run-rate financial savings of over US$200 million over the subsequent three years and speed up the transformation in direction of worthwhile and sustainable development for ISG.
Chairman and CEO quote – Yuanqing Yang:
“Lenovo delivered an impressive efficiency throughout all fronts within the third fiscal quarter, with all fundamental companies attaining sturdy double-digit income development and AI changing into a number one development engine. We applied a strategic restructuring of our Infrastructure Options enterprise, setting it on a strong path towards sustainable and worthwhile development. By leveraging our operational excellence, we successfully navigated market challenges of part value will increase and provide shortages, delivered our dedication of gaining market share and enhancing profitability. Wanting forward, as AI more and more integrates into people’ each day lives and enterprise operations, we’ll proceed to drive Hybrid AI to seize the numerous alternatives introduced by AI democratization, speed up development, enhance profitability, and ship long-term worth to our shareholders.”
Clever Gadgets Group (IDG):
- Distinctive efficiency, with general IDG income development of 14% year-on-year to US$15.8 billion, whereas sustaining industry-leading profitability.
- Regardless of industry-wide part provide shortages and rising prices, the PC and sensible gadgets enterprise enhanced its competitiveness with income rising 17% year-on-year, with PC quantity outpacing the marketplace for 10 consecutive quarters.
- PC market share for the calendar yr was the very best in Lenovo’s historical past – at 24.9%. Quarterly share was up one share level year-on-year to 25.2%, with Lenovo remaining the one firm to ever have exceeded 25% international PC market share.
- Motorola smartphones achieved report quantity and activations within the quarter
- Lenovo Tech World at CES in January 2026 noticed key system and innovation bulletins, together with the newest Lenovo Aura Version PC lineup; ThinkBook Plus Gen 7 Auto Twist; Legion Go, Powered by SteamOS (8.8”, 2); motorola razr fold and motorola signature.
- Additionally at Tech World, the corporate launched Lenovo and Motorola Qira – a private ambient intelligence designed to work throughout gadgets. The only, built-in, system-level intelligence will perceive context and assist customers transfer effortlessly via their day without having to open, swap to, or actively invoke a separate utility – reinforcing Lenovo’s private AI technique of 1 AI throughout a number of gadgets. Lenovo Qira was awarded one of many prestigious ‘Better of CES’ awards, which acknowledge ‘probably the most inspiring, boundary-pushing tech merchandise that may outline the expertise panorama this yr’.
Infrastructure Options Group (ISG):
- Report quarter, with income rising 31% year-on-year to US$5.2 billion.
- Robust momentum throughout the enterprise pushed by report CSP income from an increasing buyer base, enterprise and SMB transformation, and accelerated AI server momentum.
- The AI server enterprise income achieved excessive double-digit year-on-year development with a sturdy US$15.5 billion pipeline.
- Neptune liquid-cooling income grew 300% year-on-year, because of greater buyer adoption throughout CSP, Enterprise and SMB companies.
- At Tech World, Lenovo expanded its Hybrid AI Benefit with the launch of recent AI inferencing servers and the Lenovo AI Cloud Gigafactory with NVIDIA, strengthening the partnership to speed up scalable hybrid AI adoption throughout enterprise, public cloud, and AI manufacturing unit environments.
Options and Companies Group (SSG):
- SSG’s general income grew 18% year-on-year to US$2.7 billion – marking 19 consecutive quarters of year-on-year income development – with working margin up 2.1 factors year-on-year to over 22%.
- Progress accelerated in centered vertical industries, together with manufacturing, retail, sports activities, transportation and sensible cities, pushed by enterprises transferring AI from experimentation to manufacturing, supported by Lenovo’s tech‑led, labor‑gentle, AI‑first mannequin.
- Income combine continued to shift towards excessive development areas this quarter. Managed Companies and Challenge & Options collectively grew to just about 60% of SSG’s whole income, reflecting a services-led method throughout hybrid AI environments.
- TruScale DaaS and IaaS noticed accelerated development this quarter, pushed by GPU and AI workloads as prospects prioritize flexibility, scalability and sooner time-to-value.
- In areas reminiscent of Digital Office Companies, Hybrid Cloud, AI and Sustainability, SSG is rising at double the speed of market development – enabling the enterprise to scale income sustainably.
- At Tech World, Lenovo introduced the subsequent section of its Lenovo Hybrid AI Benefit, introducing Lenovo Agentic AI, a full-lifecycle enterprise answer for creating, deploying, and managing AI brokers. It additionally introduced Lenovo xIQ, a brand new suite of AI native supply platforms designed to simplify, speed up and operationalize AI throughout the enterprise. Collectively, these improvements assist prospects construct enterprise tremendous brokers that unify workflows, automate selections, and ship actual operational outcomes.
Company and ESG highlights
Achievements, bulletins, and notable commitments over the previous quarter embody:
[1] Notice on adjusted internet earnings: Adjusted measure was outlined as monetary metric by excluding internet honest worth adjustments on monetary belongings at honest worth via revenue or loss, amortization of intangible belongings ensuing from mergers and acquisitions, impairment and write-off of intangible belongings, honest worth change on by-product monetary liabilities referring to warrants, one-time earnings tax credit score, restructuring costs, and notional curiosity on convertible bonds; and the corresponding earnings tax results, if any.
