Sturdy World Efficiency Pushed by Clear Hybrid-AI Technique, Funding in Innovation, and Operational Excellence

August 14, 2025 – Lenovo Group Restricted (HKSE: 992) (ADR: LNVGY), along with its subsidiaries (‘the Group’), right now introduced robust first quarter outcomes for the fiscal yr 2025/26, reporting important progress in general group income and revenue. Income grew 22% year-on-year to US$18.8 billion, with web earnings up 108% year-on-year to US$505 million. On a non-Hong Kong Monetary Reporting Requirements (non-HKFRS^[1]) foundation, web earnings grew by 22% year-on-year to US$389 million, adjusted for non-cash truthful worth acquire on warrants^[2]. 

All essential enterprise teams noticed stable double-digit year-on-year income progress, with the PC enterprise reporting significantly robust numbers following the very best year-on-year income progress price in 15 consecutive quarters and an all-time excessive market share of 24.6%. The Group’s diversified progress engines proceed to develop, with non-PC income combine up practically half some extent year-on-year to 47%. All gross sales geographies delivered excessive to comparatively excessive year-on-year income progress. The robust outcomes reinforce Lenovo’s means and dedication to protect competitiveness, keep market share, and maintain profitability towards the difficult exterior atmosphere.

Three essential strategic elements drove the outcomes. First, the Group’s agency execution of its hybrid AI imaginative and prescient sees it capitalizing on unprecedented AI alternatives. Second, a dedication to steady funding in innovation, which noticed R&D spending improve over 10% year-on-year, supporting the Group’s progress in the direction of long-term objectives of constructing private and enterprise AI twins. And third, its operational excellence, together with a singular ODM+ manufacturing mannequin, a balanced international gross sales footprint, and a ‘World/Native’ mannequin that mixes international sourcing and assets with native supply.

The mix of those elements provides the Group most flexibility and resilience to navigate via market cycles and geopolitical uncertainties. Wanting forward, Lenovo stays dedicated to delivering extra breakthrough improvements for patrons, producing greater returns for its shareholders, and creating lasting worth for its stakeholders and communities world wide.

Chairman and CEO quote – Yuanqing Yang:

“By leveraging the resilience and suppleness of our provide chain and operational excellence, we overcame challenges introduced by tariff volatility and the geopolitical panorama and achieved important progress in each prime and backside strains. These report Q1 outcomes underscore our means to ship on our promise to protect competitiveness and repeatedly develop our enterprise. Wanting forward, we’ll proceed to firmly execute our hybrid AI technique in the direction of the imaginative and prescient of Smarter AI for all, relentlessly drive innovation in private AI and enterprise AI merchandise and options and persistently strengthen our operational competitiveness in order that we are able to understand sustainable progress and profitability enchancment.” 

Monetary Highlights:

Lenovo administration encourages buyers, analysts, and the general public to deal with its non-HKFRS measures, which exclude the influence of non-cash objects associated to warrants and convertible bonds as a part of Lenovo’s strategic collaboration with Alat. Non-HKFRS affords a clearer view of the Group’s core operational efficiency, because the non-cash objects associated to warrants and notional curiosity on convertible bonds are anticipated to persist via the tip of fiscal yr 2027/2028.

Clever Units Group (IDG): Sturdy progress throughout the board, main in private AI

Q1 FY25/26 efficiency:

• Total IDG income grew practically 18% year-on-year to US$13.5 billion, with the PCs and good units enterprise delivering 19% year-on-year income progress, the quickest tempo in 15 quarters. All geographies achieved double-digit year-on-year income progress in PCs and good units.
• The PCs and good units enterprise maintained its industry-leading profitability with an working revenue of greater than 8% due to a powerful efficiency from high-margin segments.
• PC market management was additional strengthened with a report 24.6% market share, along with an elevated lead over the quantity two participant.
• AI PC penetration accelerated, accounting for greater than 30% of all Lenovo PC shipments. Lenovo ranks #1 globally within the Home windows AI PC section with a 31% market share.
• Smartphone income grew over 14% year-on-year to US$2.2 billion, with gross sales quantity outgrowing the marketplace for eight consecutive quarters. In markets outdoors of China, smartphone market share reached a report excessive, with the success of the Razr cellphone seeing Motorola take the #1 place in foldables (flip and fold) with over 50% market share.
• Wanting forward, IDG will proceed to construct agent-native units of assorted kinds, whereas enriching the applying ecosystem for AI tremendous agent to spice up agent person engagement. This may drive towards “One AI, A number of Units”, positioning agent-native units because the entry level for Private AI.

Infrastructure Options Group (ISG): Sustained excessive progress, constructing long-term competitiveness

Q1 FY25/26 efficiency:

• ISG delivered robust income progress of up 36% year-on-year to US$4.3 billion via a powerful execution of its CSP (Cloud Service Supplier) and E/SMB (Enterprise and SMB) twin technique.
• Rising investments in AI infrastructure and R&D, in addition to enhancing E/SMB competitiveness, at the same time as profitability was impacted within the short-term.
• The AI infrastructure enterprise income greater than doubled year-on-year with a sturdy pipeline and a transparent product roadmap forward. Income from industry-leading liquid cooling options grew 30% year-on-year.
• Wanting forward, ISG is dedicated to investing in driving long-term progress and worth via strategic market growth, E/SMB enterprise mannequin transformation, AI infrastructure innovation and product improvement, to remain forward of the AI curve and supply differentiated international competitiveness. The Group is assured that ISG is not going to solely maintain mid-to-long-term progress, but additionally ship stronger profitability returns.

Options and Companies Group (SSG): Excessive progress and excessive profitability, unleashing Lenovo hybrid AI Benefit

Q1 FY25/26 efficiency:

• SSG delivered one other report quarter of income, up 20% year-on-year to US$2.3 billion – marking 17 consecutive quarters of year-on-year income progress.
• Working margin was up 1.2 factors year-on-year to over 22% – making SSG the important thing revenue engine for the Group general, due to its sustainable margin growth.
• Help Companies achieved double-digit year-on-year income progress by leveraging robust market demand for {hardware} and specializing in attaching premium providers, e.g., Premium Care and Premier Help Plus.
• Managed providers, and “as-a-Service” choices, together with Tasks and Options grew even quicker with TruScale Infrastructure-as-a-service delivering triple-digit progress year-on-year in signings, and TruScale System-as-a-service seeing double-digit progress for the quarter. Their mixed combine growing three factors year-on-year to 58% of SSG’s whole income.
• AI-driven options have gained momentum, particularly in manufacturing and provide chain sectors.
• Wanting forward, Lenovo will additional construct the Lenovo Hybrid AI Benefit framework as its key differentiator and can deal with Digital Office Options, Hybrid Cloud, and Sustainability options, whereas on the similar time constructing easy and scalable AI-led vertical options to resolve clients’ most vital wants.

Company and ESG highlights

Lenovo printed its FY2024/25 Environmental, Social and Governance Report in June 2025, key highlights included:

• Detailed progress in the direction of the Group’s 2030 emissions discount targets, together with reaffirming its long-term ambition to attain net-zero greenhouse fuel emissions by 2050.
• Environmental progress via participation within the round financial system, together with the continual use of closed-loop recycled supplies in its merchandise in addition to sustainability providers for patrons.
• The Group’s sustainability efficiency was acknowledged by 3^rd events akin to EcoVadis (Platinum Medal), MSCI ESG Scores (AAA), and CDP (An inventory in local weather, water safety and provider engagement). The Group’s governance and reporting was moreover acknowledged with a Gold Awardfrom the Hong Kong Institute of Licensed Public Accountants (HKICPA) for Greatest Company Governance and ESG.

Lenovo was not too long ago ranked #8 in Gartner’s Prime 25 World Provide Chain, with an ESG Rating of 9/10. The rating acknowledges excellence in provide chain operations amongst international leaders throughout varied industries, together with pharmaceutical, automotive, FMCG, and expertise. The distinguished Gartner rating highlights firms that persistently display management in provide chain technique and execution.

In July 2025 Lenovo climbed 52 spots on the Fortune World 500 listing. This achievement marks Lenovo’s sixteenth yr on the World 500, highlighting it as one of many world’s 500 largest firms by income, with its highest rating within the Expertise sector so far – putting 13^th among the many international expertise {industry}.

[1] Non-HKFRS measure was adjusted by excluding web truthful worth modifications on monetary belongings at truthful worth via revenue or loss, amortization of intangible belongings ensuing from mergers and acquisitions, acquire on deemed disposal of a subsidiary, impairment and write-off of intangible belongings, property, plant and tools and construction-in-progress, truthful worth change on by-product monetary liabilities regarding warrants, and notional curiosity of convertible bonds; and the corresponding earnings tax results, if any.

[2] Results of warrant obligations will fluctuate positively or negatively within the coming quarters (via the tip of FY27/28), based totally on share worth actions within the quarter. Lenovo encourages the market to deal with its underlying operational efficiency as mirrored by non-HKFRS reporting.

About Lenovo

Lenovo is a US$69 billion income international expertise powerhouse, ranked #196 within the Fortune World 500, and serving hundreds of thousands of shoppers each day in 180 markets. Targeted on a daring imaginative and prescient to ship Smarter Expertise for All, Lenovo has constructed on its success because the world’s largest PC firm with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized units (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, excessive efficiency computing and software program outlined infrastructure), software program, options, and providers. Lenovo’s continued funding in world-changing innovation is constructing a extra equitable, reliable, and smarter future for everybody, in all places. Lenovo is listed on the Hong Kong inventory trade beneath Lenovo Group Restricted (HKSE: 992) (ADR: LNVGY). To seek out out extra go to https://www.lenovo.com, and browse concerning the newest information by way of our StoryHub.