Lenovo and the Group’s subsidiaries have published financial results for the fourth quarter of fiscal year 2025/26, which recorded an exceptional Q4, making it the strongest year in the Group’s history.
During this latest quarter, Lenovo Group’s overall revenue reached the all-time high fourth quarter milestone of $21.6 billion following a 27% year-over-year increase, representing the highest year-over-year growth rate in five years, doubling adjusted net profit year-over-year to $559 million. Income related to AI stood out as the main growth driver, increasing by 84% compared to the same period of the previous year to represent 38% of the Group’s total income in this fourth quarter.
For the full year, Lenovo posted record revenue of $83.1 billion, with adjusted net profit growing 42% year-over-year to $2 billion. All business groups delivered strong double-digit revenue growth over the prior year, highlighted by the Infrastructure Solutions Group’s (ISG) record full-year performance, with revenue of $19.2 billion, full-year profitability and a $142 million year-over-year increase in operating profit. AI-related revenues doubled from the previous year and have contributed 33% of the Group’s revenues this fiscal year.
Wide presence to offer balanced manufacturing
The results of this fourth quarter and the full year have demonstrated the Group’s ability to maintain growth and strengthen its competitive position, while facing a complex external environment marked by supply shortages and increased component costs. Operational excellence, underpinned by a global business and a balanced manufacturing presence, as well as a global-local operations model, has resulted in robust structural resilience, capable of coping with a volatile environment. The Group has also continued to increase investment in innovation, with a 16% year-on-year increase in R&D expenses, to represent 3.5% of the Group’s income in this last quarter, as well as an increase of 9% year-on-year to reach 3% of the Group’s total income for the full year. At the same time, continued progress in realizing its Hybrid AI vision has positioned Lenovo at the forefront of the era of democratization and adoption of inferential AI.
Lenovo’s Board of Directors has established a final dividend of 33.70 Hong Kong cents per share for the fiscal year ended March 31, 2026.
In the words of Chairman and CEO – Yuanqing Yang: “Lenovo has concluded its best year to date with an exceptional fourth quarter, in which we have delivered on our promises. We have returned the Infrastructure Solutions Group to the path of profitable and sustainable growth and have achieved hyper growth by capturing the opportunity of the booming AI infrastructure market. Through strong execution of our Hybrid AI strategy, we are uniquely positioned to lead the new wave. of democratization and adoption of inferential AI. This strong momentum across all business groups gives us great confidence in our ambition to become a $100 billion revenue company in the next two years, while continuing to deliver strong returns for our shareholders.”
Double-digit growth in all areas of the company
The fourth quarter results show an especially strong performance for the Intelligent Devices Group (IDG), which is consolidating itself as one of the company’s main growth drivers. Revenues reached $14.6 billion, representing a year-on-year increase of 24%, driven above all by the strong dynamism of the PC and smart device business, which grew 26%, registering its best pace in five years. This growth also occurs while maintaining stable profitability, with an operating margin of 6.9%, which reflects efficient business management.
In the PC segment, Lenovo reinforces its competitive position with clear leadership in profits compared to its rivals and sales growth that exceeds the market by almost six percentage points. It is especially relevant that the company has been the only one among the top five global manufacturers to maintain positive year-on-year growth for ten consecutive quarters, demonstrating exceptional consistency in a generally volatile market. Added to this is a record market share of 24.4% in the fourth quarter, widening the gap with its closest competitor to the highest level in fifteen years. Another key element is the improvement in the quality of sales, since 50% corresponds to premium PCs, after this segment grew by 29%, which indicates a clear commitment to products with greater added value. In parallel, the mobile business also contributes positively, with Motorola achieving record sales figures and double-digit revenue growth.
For its part, the Infrastructure Solutions Group (ISG) shows a very notable recovery, reaching historical figures in both revenue and profitability. Quarterly revenues amounted to $5.6 billion, 37% more than the previous year, while operating profit stood at $202 million, marking the best performance since the creation of this business. This growth is strongly linked to the rise of artificial intelligence, where the company accumulates a server development portfolio valued at 21 billion dollars and more than 5,800 projects deployed to clients.
The technological push is also reflected in advances in infrastructure, such as the deployment of rack-scale solutions and the introduction of advanced systems such as GB300 NVL72 racks. Additionally, future platforms based on Rubin technology promise to accelerate the implementation of AI solutions in the second half of the year. Production capacity is another differentiating factor, with more than 70,000 racks annually, including 11,000 with direct liquid cooling, specially designed to support artificial intelligence workloads. Added to this is the acquisition of Infinidat, which significantly strengthens high-end enterprise storage capabilities, opening new opportunities for growth and long-term margin improvement.
The technological push is also reflected in advances in infrastructure, such as the deployment of rack-scale solutions and the introduction of advanced systems
The Solutions and Services Group (SSG) also maintains a very positive trajectory, characterized by sustained growth and high profitability. Revenues reached $2.6 billion, with an increase of 19%, extending double-digit expansion to five consecutive years. This growth is accompanied by margins of over 20%, which positions this unit as one of the most profitable in the group. A particularly relevant aspect is the transformation of the business model towards recurring income, since 62% of income comes from managed services and solutions, a historical maximum that reflects the success of a strategy based on scalability, technology and less dependence on labor.
In this context, solutions such as Lenovo Hybrid AI Advantage from Lenovo are gaining prominence by making it easier for customers to adopt AI, reducing deployment times and increasing the value generated through more than 60 use cases applied in sectors such as industry, retail or sports. Likewise, the TruScale portfolio is established as a key growth driver, offering a flexible consumption-based model that allows companies and cloud providers to scale AI solutions more efficiently, with greater cost predictability and better utilization of resources.
For the entire fiscal year, the company has reached a historic milestone by exceeding $80 billion in revenue for the first time, reaching $83.1 billion, which represents a growth of 20%. Adjusted net income grew even faster, 42% to $2 billion, demonstrating notable improvement in operating efficiency. All business groups recorded double-digit growth, highlighting the role of artificial intelligence as the main catalyst, with revenues associated with AI that doubled (+105%) and now represent a third of the group’s total.
By division, IDG generated $58.9 billion in annual revenue (+17%), consolidating its leadership in PCs; ISG reached a record of 19.2 billion (+32%) and achieved profitability after significantly improving its operating results; and SSG exceeded $10 billion for the first time (+19%), with operating profit that has more than doubled in five years. Altogether, the results reflect a coherent strategy based on innovation, expansion in artificial intelligence and a clear evolution towards business models with greater added value.
