Lenovo’s PC, tablet and smartphone division, which accounted for about 60 percent of total revenue, reported a 27 percent year-on-year increase in revenue during the period.
Beating all forecasts, China’s Lenovo group posted a 43 per cent jump in quarterly revenue on Thursday. The growth in the revenue of the world’s largest computer maker is highest in five years and is mainly attributed to the artificial intelligence (AI) hardware boom and reaping the benefits of global memory chip shortage.
With solid PC sales, Lenovo’s revenue rose to $26.94 billion in the three months ending in June 30. AI related revenue grew by 60 percent year-on-year to $9.3 billion, accounting for 35 per cent in total revenue in its first fiscal quarter.
Lenovo’s shares hit an all-time high on Thursday before the results announcement, bringing its year-to-date gains to 225 per cent. The shares surged as much as 17 per cent after the results announcement.
According to LSEG, however, the company’s shareholders stood at $609 million net-loss from a profit of $589 million last year. Lenovo said the loss was primarily due to a non-cash fair value loss of US$1.7 billion arising from the revaluation of warrants issued in 2025.
US competitors like Dell, Hewlett Packard, and Super Micro have increased their prices by 10 to 30 per cent due to soaring prices of NAND and dynamic random access memory (DRAM) memory chips. Accounting for 60 per cent of the total revenue, Lenovo’s PC, tablet and smartphone division reported a 27 per cent revenue growth, while the research and development (R&D) expenses jumped 30 percent on a year-on-year basis.
Lenovo retained its market lead with a share of 25.6 per cent, in the second quarter of 2026, even as global PC shipments declined by 2 per cent, YoY, in the same period. This comes after the company warned of pressure on PC shipments as the industry grapples with a memory chip shortage.
