Lenovo has reported its strongest quarter in Group history for Q1 FY2026/27, with Group revenue reaching an all-time quarterly high of US$26.9 billion, up 43% year-on-year, as its Hybrid AI strategy drove record revenue across every business group.

Lenovo said adjusted net income rose 176% year-on-year to US$1.1 billion, crossing the US$1 billion mark for the first time, while artificial intelligence (AI)-related revenue grew 60% to US$9.3 billion, now accounting for 35% of total Group revenue. R&D expenses rose 30% year-on-year to US$682 million.

“Following Lenovo’s best year in history, we have now delivered our strongest quarter ever – with growth accelerating, profitability further improving, and AI emerging as a clear growth engine across every business group. Building on our leadership in PCs and Smart Devices, we are proud of our rapid emergence as a global leader in AI and Infrastructure – a clear validation of our strategic foresight,” said Yuanqing Yang, Chairman and CEO, Lenovo.

Infrastructure and AI PCs lead segment growth

The Infrastructure Solutions Group (ISG) was the standout performer, with revenue nearly doubling to a record US$8.5 billion, up 98% year-on-year, and operating margin reaching an all-time high of 9.1%. The unit’s AI server order pipeline expanded to US$54 billion, up 157% quarter-on-quarter. The Intelligent Devices Group (IDG) grew revenue 27% to US$17.1 billion, with Lenovo extending its global PC market share lead to 24.2% and its AI PC market share to 25.1%. The Solutions and Services Group (SSG) posted its highest-ever quarterly revenue of US$2.9 billion, up 28%, with AI services revenue growing at a triple-digit rate as customers moved from AI experimentation to production deployment.

• Group revenue: US$26.9 billion, up 43% year-on-year
• Adjusted net income: US$1.1 billion, up 176%
• AI-related revenue: US$9.3 billion, up 60%, or 35% of Group revenue
• ISG (infrastructure) revenue: US$8.5 billion, up 98%; AI server pipeline at US$54 billion
• IDG (devices) revenue: US$17.1 billion, up 27%; global PC share 24.2%, AI PC share 25.1%
• SSG (solutions and services) revenue: US$2.9 billion, up 28%

Adjusted profit up sharply, but GAAP result swings to a loss

Lenovo’s headline figures are based on adjusted net income, which excludes items such as fair value changes on financial assets, merger and acquisition-related charges, and notional interest on convertible bonds. On an unadjusted basis, the Group swung to a net loss of US$609 million attributable to equity holders, against a net profit of US$505 million a year earlier, as operating profit fell 98% year-on-year to US$19 million from US$785 million. Lenovo attributed the difference primarily to non-operating and fair-value items excluded from its adjusted metric, rather than to underlying trading performance.

The quarter also saw Lenovo serve as FIFA’s Official Technology Partner for the 2026 World Cup, providing devices, infrastructure and AI-powered services across three host countries, 16 cities and 104 matches. Lenovo climbed 43 places to rank 153rd on the Fortune Global 500 and achieved its highest-ever ranking of fifth in the Gartner Supply Chain Top 25.