Lenovo and its Group subsidiaries have announced financial results for the third quarter of fiscal year 2025/26, a period in which the company has recorded record revenues, profitability has accelerated and revenues associated with artificial intelligence have continued to increase.
During this period, the Group’s overall revenues have reached an all-time high of $22.2 billion in a single fiscal quarter, an increase of 18% year-on-year, and revenues from all business groups have experienced double-digit growth compared to last year.
Excluding non-cash non-operating items and one-time gains and charges during the third quarter of fiscal years 24/25 and 25/26, Lenovo’s adjusted net profit rose up to 2.7%.
The results achieved are further evidence of the Group’s ability to deliver on its promise of achieving double-digit growth and sustained profitability, while demonstrating its potential to navigate cycles by leveraging innovation to drive growth and operational excellence to manage volatility.
AI, engine of global growth
AI has become a leading multi-year growth driver for Lenovo Group, with AI-related revenue increasing 72% year-over-year. They currently represent almost a third (32%) of the Group’s total revenue, driven by strong demand for AI devices, infrastructure, services and solutions.
The quarter has been characterized by strong revenue growth, fueled by the expansion of market leadership in PCs and Smart Devices, a record in smartphone volume and activation and an all-time high in revenues for both the Infrastructure Solutions Group and the Solutions and Services Group.
To better capture the multi-year demand for AI training and long-term growth in AI inference, Lenovo Group undertook a strategic restructuring of its ISG business, which has resulted in a one-time restructuring charge of $285 million in this third quarter of fiscal year 25/26. This optimization of the cost structure, simplification of the product portfolio and strengthening of the sales organization is expected to generate recurring annual savings in excess of $200 million over the next three years and accelerate ISG’s transformation towards profitable and sustainable growth.
According to Yuanqing Yang, Chairman and CEO of Lenovo: “During this fiscal third quarter, Lenovo has delivered extraordinary performance on all fronts. All core businesses have recorded double-digit revenue growth and AI has become a powerful driver of growth. We have implemented a strategic restructuring of our Infrastructure Solutions business, to put it on a secure path to sustainable and profitable growth. Thanks to our operational excellence, we have managed to overcome market challenges, including increases in component cost and supply constraints, and we have delivered on our commitment to grow market share and improve profitability. Looking ahead, as AI becomes increasingly integrated into people’s daily lives and business operations, we will continue to drive hybrid AI to seize the opportunities created by the democratization of AI, accelerate growth, improve profitability and deliver long-term value to our shareholders.”
Intelligent Devices Group (IDG)
Lenovo Intelligent Devices Group (IDG) posted strong growth, with revenue of $15.8 billion, up 14% year-over-year, maintaining industry-leading profitability. The PC and smart devices business increased revenue by 17%, driving annual PC market share to an all-time high of 24.9% and 25.2% in the latest quarter. Motorola smartphones reached record volume and activation figures. Additionally, at CES 2026, during Lenovo Tech World, the company presented new innovations in PCs, gaming and personal ambient intelligence Lenovo and Motorola Qira.
Infrastructure Solutions Group (ISG)
Lenovo Infrastructure Solutions Group (ISG) achieved a record quarter, with 31% year-over-year growth and revenue of $5.2 billion. This performance was driven by historical figures in the provision of cloud services, thanks to the expansion of the customer base and the transformation of the business and SME segments. The AI server business posted strong double-digit growth and built a robust pipeline of products valued at $15.5 billion. The strong momentum of Neptune liquid cooling technology also stood out, whose revenue tripled compared to the previous year. During Lenovo Tech World, the company expanded its Hybrid AI Advantage proposition with new AI inference servers and the introduction of the Lenovo AI Cloud Gigafactory in collaboration with NVIDIA.
All Lenovo businesses have seen double-digit revenue growth and AI has become a powerful growth driver
Solutions and Services Group (SSG)
Finally, Lenovo’s Solutions and Services Group (SSG) increased its revenues by 18% year-on-year, to $2.7 billion, chaining 19 consecutive quarters of growth and raising its operating margin above 22%. The acceleration in sectors such as manufacturing, commerce, transportation and smart cities reflected the move from experimentation to production in AI, supported by the company’s technological model. The composition of revenue evolved towards high growth areas, with Managed Services and Solutions and Projects representing close to 60% of the total. TruScale DaaS and IaaS grew strongly, driven by AI workloads and GPUs. At Lenovo Tech World, the company introduced the new phase of Hybrid AI Advantage with Lenovo Agentic AI and Lenovo xIQ, aimed at simplifying and scaling enterprise AI.
Highlights in the Corporate and ESG field
In the corporate and ESG arena, Lenovo reinforced its leadership with important advances. The company highlighted the strategic relevance of the META region with the appointment of Tareq Alangari as senior vice president and president for the Middle East, Türkiye and Africa. In sustainability, it obtained the AAA rating from MSCI in ESG for the fourth consecutive time, was recognized as a “Most Sustainable Organization” by the Hong Kong Institute of Certified Public Accountants and achieved Double A leadership in climate change and water security from CDP. Additionally, for the second year in a row, it was named to Fast Company’s Top 100 Companies for Innovators list.
