How Lenovo Reached $83.1B in Revenue as AI Became a Major Growth Engine

In the fourth quarter alone:

• AI‑related revenue grew 84% year‑on‑year
• AI products accounted for about 38% of total group revenue

This category includes several rapidly expanding areas such as:

• AI servers and enterprise infrastructure
• hybrid AI solutions deployed across edge, cloud, and devices
• AI‑capable PCs designed for on‑device AI workloads

The growing share of AI revenue signals a shift in Lenovo’s business mix. Instead of relying primarily on traditional PC shipments, the company is increasingly positioned as a provider of AI infrastructure across devices, data centers, and services.

Strong quarterly momentum throughout the year

Lenovo’s record annual performance was built on consistent quarterly growth.

Q1: A strong start

The fiscal year began with record first‑quarter revenue of $18.8 billion, up 22% year‑on‑year, with all major business groups posting double‑digit growth.

Q2: New quarterly record

In the second quarter, Lenovo reached an all‑time quarterly revenue high of $20.5 billion, a 15% increase year‑on‑year, while adjusted net income rose 25%.

Q3: AI expansion continues

The momentum continued into Q3, where revenue climbed to about $22.2 billion, up 18% year‑on‑year, again with double‑digit growth across the company’s major divisions.

Q4: The strongest finish

The final quarter capped the year with $21.6 billion in revenue, representing 27% year‑on‑year growth, the fastest growth rate Lenovo had recorded in five years.

This strong finish highlighted the accelerating demand for AI infrastructure and enterprise computing solutions.

Strategy: hybrid AI across devices, infrastructure, and services

A major theme behind Lenovo’s performance is its “hybrid AI” strategy, which aims to integrate AI capabilities across three layers of computing:

• Devices such as AI‑capable PCs and edge systems
• Infrastructure including servers and data‑center solutions
• Services and solutions that help enterprises deploy AI workloads

This approach allows Lenovo to capture demand at multiple points in the AI technology stack rather than focusing solely on end‑user hardware.

Analyst outlook and market expectations

Some analysts have turned more optimistic about Lenovo’s prospects as the AI infrastructure cycle strengthens.

Reports citing Nomura indicated the firm upgraded Lenovo’s rating to “Buy” and raised its price target to around HK$14, suggesting potential upside based on expectations of stronger server growth and increasing AI server demand.

Analysts also point to several possible growth catalysts:

• rising global investment in AI infrastructure
• increasing adoption of AI PCs
• continued gains in PC market share in key regions

However, such analyst views come from secondary reporting of research notes rather than direct filings, so they should be interpreted as market sentiment rather than confirmed forecasts.

The bigger picture

Lenovo’s FY2025/26 results illustrate how the global AI investment cycle is reshaping the hardware industry. Traditional PC demand remains important, but the fastest growth is increasingly coming from:

• AI servers and enterprise infrastructure
• AI‑enabled client devices
• hybrid deployments spanning cloud, edge, and local computing

If AI infrastructure spending continues to expand globally, Lenovo’s diversified presence across PCs, servers, and enterprise solutions could allow it to capture a growing share of that market.

For now, the company’s $83.1 billion record year highlights how quickly AI has moved from a strategic initiative to a core revenue driver.