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Lenovo, one of the leading technology giants, announced a record-breaking annual revenue surpassing $80 billion for the fiscal year 2025/26, propelled by surging demand for artificial intelligence solutions. Following this announcement, its stock price soared to a 26-year high, closing up nearly 20% in Hong Kong trading at HKD 15.75 ($2), having touched HKD 15.82 earlier in the day — the highest point since March 2000. The shares have gained almost 70% this year, largely due to impressive growth in AI-related sectors.
For the year ending March 31, the company’s total revenue increased by 20% compared to the previous year, reaching $83.1 billion. Its adjusted net profit also saw significant growth, climbing 42% to $2 billion. Revenue from AI-related units more than doubled, soaring 105%, and now makes up approximately a third of total revenue.
The company’s leadership has ambitious plans, with a goal to reach $100 billion in annual revenue within the next two years. This optimism stems from the sustained acceleration in demand for AI-powered personal computers and servers. Investor confidence has been bolstered by the company’s recent AI-driven business expansion, reflected in its strong share performance this year.
In the last quarter alone, adjusted net profit doubled year-over-year to $559 million, while quarterly revenue hit a record $21.6 billion — marking the fastest growth in five years. Research and development expenditure for the entire fiscal year increased by 9%, now representing 3% of total revenue. R&D spending in the fourth quarter rose 16% compared to the previous year, constituting 3.5% of quarterly revenue.
The CEO highlighted the company’s prosperous year, emphasizing the successful execution of its Hybrid AI strategy. This positions the firm to lead in AI inference and democratization. With momentum across all divisions, the leadership remains confident in hitting the $100 billion revenue mark within two years while continuing to deliver solid returns for shareholders.
According to the latest financial reports, all three major divisions experienced double-digit growth during the fiscal year. Revenue from the Intelligent Devices Group grew 17% to $58.9 billion, while the Infrastructure Solutions Group saw a 32% rise, reaching $19.2 billion. Revenue from the Solutions and Services Group also increased by 19%, totaling $10 billion.
The Infrastructure Solutions Group, the fastest-growing segment, turned around its fortunes from a $68.5 million operating loss a year prior to generating $73 million in profit, primarily driven by strong demand for AI servers. The company’s AI server order pipeline reached $21 billion by the end of the period.
In its flagship Intelligent Devices division, the company maintained its position as the world’s top personal computer maker, claiming a 24.4% share in the last quarter. The market share gap between Lenovo and the second-largest vendor widened to its largest in 15 years, reinforcing its dominance.
Looking ahead, the company anticipates that AI-powered PCs will constitute over half of its total PC sales in the coming year. Additionally, sales of AI servers are expected to continue growing strongly.
— End of report —
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