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Lenovo Reports Strong Revenue Beat as AI Infrastructure Drives Growth

Surging AI-related sales are reshaping Lenovo’s business model and lifting adjusted profits.

Overview

  • Lenovo posted quarterly revenue of $26.94 billion, a 43% year-on-year rise that exceeded market expectations and drove adjusted net profit up 176% to $1.075 billion.
  • A nonrecurring fair-value revaluation of warrants produced a $609 million GAAP loss, creating a gap between strong adjusted results and the company’s reported net income.
  • AI-related revenue made up about 35% of the quarter and the infrastructure-solutions unit nearly doubled its revenue, producing an operating profit of $777 million on rising demand for AI servers.
  • The intelligent-devices group grew revenue 27% despite higher memory costs, even as industry data showed global PC shipments fell 4.9% and Lenovo held the top market share at 24.2%.
  • Lenovo said the quarter strengthens its path to a $100 billion revenue goal and analysts said the company is well placed to capture growing AI infrastructure budgets while planning AI PCs using Nvidia chips later this year as expected.