Prabhu RamLenovo reported a record fiscal quarter ended December 2025, delivering US$22Bn in revenue (+18% YoY), driven by broad-based growth across all business groups of Lenovo. AI-related revenue surged 72% YoY and now contributes 32% of total Group revenue, underscoring its role as a core growth engine.
What’s Working
Consistent execution by Lenovo across devices, infrastructure, and services is translating AI momentum into measurable results.
Lenovo’s Intelligent Devices Group grew 14% YoY despite component cost pressures and supply constraints. Lenovo’s global PC market share reached a historic 25% for the calendar year, reflecting scale advantages and cyclical recovery. Motorola Mobility posted record volumes, including double-digit growth in India.
The Infrastructure Solutions Group revenue increased 31% YoY to US$5Bn, supported by enterprise, cloud, SMB, and AI server demand. The AI server pipeline stands at US$15Bn, while Neptune liquid-cooling solutions grew 300% YoY, addressing AI-intensive workloads and data center efficiency needs.
The Solutions and Services Group posted 19 consecutive quarters of growth (+18% YoY), driven by managed services and AI-led offerings that enhance recurring revenue visibility.
Why It Matters
Lenovo is converting AI demand into balanced growth across hardware, infrastructure, and services. ISG’s US$285Mn restructuring is designed to streamline costs and portfolio focus, targeting over US$200Mn in annual savings as AI demand shifts from training to inferencing.
What to Watch
With AI now a material revenue pillar, attention turns to margin resilience amid memory cost pressures, consumer demand elasticity, and the durability of AI infrastructure investment. Sustained execution across cycles will determine how durable this growth trajectory proves to be.
