Lenovo’s shares soared following the company’s impressive fiscal first-quarter results, driven by the continued surge in artificial intelligence hardware demand. The company’s stock in Hong Kong closed up 20%, at HKD34.90 (approximately USD4.45) per share, marking nearly a 280% increase for the year so far.
For the quarter ending June 30, the Beijing-based tech giant reported a 176% increase in adjusted net profit, reaching $1.08 billion compared to the previous year. Operating revenue also grew significantly, climbing 43% to $26.9 billion—the highest growth rate in five years.
Company leadership highlighted this milestone, with the CEO stating, “We achieved our best quarter ever—record revenue, record adjusted profit, and a strong push in AI momentum.” Artificial intelligence has become a central growth driver, with AI-related business income soaring 60% during the quarter to a record $63.4 billion, making up roughly 35% of total revenue.
The CEO emphasized that years of strategic investment and transformation are paying off, noting, “AI is now a clear growth engine across every business segment.” Despite the positive figures, the company reported an unusual net loss of $609 million, primarily due to a non-cash fair-value loss of $1.7 billion on warrants issued in 2025, as well as $30 million in nominal interest on convertible bonds.
Looking ahead, the leader confirmed the company’s ambition to reach $100 billion in annual revenue within two years. “With the momentum from the first quarter, I believe we’re ahead of schedule and may achieve this goal sooner than expected,” he said.
The company’s core business groups showed consistent growth. The Intelligent Device Group increased its global market share, with revenue climbing 27% to CNY116.4 billion (about USD17.25 billion), despite broader market challenges. The Infrastructure Solutions Group nearly doubled its revenue, hitting a record of CNY57.9 billion. Meanwhile, the Solutions and Services Group posted CNY19.6 billion in revenue, up 28%, marking a 21st consecutive quarter of double-digit growth.
Lenovo continues to lead as the world’s largest PC manufacturer, maintaining a market share that is 5.3 percentage points ahead of its nearest competitor, HP—extending its lead for the tenth straight quarter.