AI Drives Lenovo to a Record Year: Revenues Exceed 80 Billion Dollars
For the first time in its history, Lenovo surpasses the threshold of 80 billion dollars in annual revenues. The group closes the fiscal year 2025/26 at 83.1 billion dollars, up 20% year-on-year, with an adjusted net profit of 2 billion, an increase of 42%. The fourth quarter drives these results, closing at 21.6 billion dollars in revenue with a growth rate of 27%, the highest in the last five years. The quarterly net profit (unadjusted) rises to 521 million, nearly five times the 90 million from the same period last year. The engine of this acceleration is artificial intelligence, which in the fourth quarter generated revenue growth of 84% and represented 38% of the group's total turnover. For the entire year, AI-related revenues have doubled, accounting for 33% of the total. The push comes from two main areas: AI infrastructure, where Lenovo has reported profitability in its enterprise arm, and personal devices equipped with NPU, where the company maintains market leadership in PCs. President and CEO Yuanqing Yang has set the goal of bringing the group to 100 billion dollars in revenue within two years, leveraging the ongoing hybrid AI strategy.
AI Infrastructure, Return to Profitability
The most awaited data for those observing Lenovo's enterprise side concerns the Infrastructure Solutions Group (ISG), the division that encompasses servers, storage, and data center infrastructure. The quarter closes with record revenues of 5.6 billion dollars (+37%) and an operating profit of 202 million, the highest ever. For the entire year, ISG reaches 19.2 billion dollars in revenue, up 32%, marking a return to annual profitability after a restructuring path, with an annual operating profit of 73 million dollars, an improvement of 142 million compared to the previous year. The operational picture reflects a company that is converting its industrial capacity towards AI architectures. The declared pipeline for AI servers amounts to 21 billion dollars, with over 5,800 AI implementations at customer sites and an annual production capacity now exceeding 70,000 racks across AI systems, general computing, and storage, including over 11,000 with direct liquid cooling. The second half of the year anticipates the first shipments of the GB300 NVL72 racks from NVIDIA and the platforms based on the Rubin architecture, also from NVIDIA, the two families on which the next phase of the training and inference server market depends. In early April, the acquisition of Infinidat was also completed, an operation through which the group strengthens its high-end enterprise storage portfolio.
PCs, AI Devices, and Managed Services
The historical part of the business remains solid. The Intelligent Devices Group (IDG), which encompasses PCs and smartphones, recorded quarterly revenues of 14.6 billion dollars (+24%) and annual revenues of 58.9 billion (+17%), with an operating margin stable at 6.9%. The global market share in PCs reached 24.4%, a quarterly high for the company, with a gap from the second operator that hasn't been this wide in fifteen years. Half of the quarterly shipments are now focused on the premium segment, growing 29% year-on-year. On the mobile front, Motorola smartphones achieved record quarterly shipments, with double-digit revenue growth.
The division that best embodies the transformation of the business model is the Solutions and Services Group (SSG), which closes the quarter at 2.6 billion dollars in revenue (+19%) and for the first time surpasses the 10 billion mark for the entire year, also with a 19% growth and operating margin above 20%. 62% of revenues come from managed services and projects, indicating an offering increasingly less tied to single hardware transactions. Here lies the proposal of AI for enterprises. The Hybrid AI Advantage platform now includes over sixty use cases, while the consumption-based TruScale model confirms itself as one of the main channels for the adoption of artificial intelligence solutions among customers.
The Italian Context and the Ambition of 100 Billion
The local reading of the numbers comes from Enza Truzzolillo, CEO of Lenovo Italy, who positions the results within the context of a still heterogeneous but evolving national market, with opportunities concentrated in the country's key sectors: manufacturing, services, research, and public administration. Truzzolillo describes AI as a cross-cutting lever of competitiveness, relating simultaneously to the adoption of business infrastructures and the dissemination of new personal devices capable of running models on board. "The real challenge today is not to 'introduce' AI but to make it part of work and daily life: a structural lever for growth, driven by leadership and methodology," observes the manager, who emphasizes the theme of creating a system among businesses, institutions, and the research world to accompany the transition from experimentation to large-scale adoption. The context remains complex, amid tensions in the supply chain and rising component costs, but the overall numbers reflect a company that has rebuilt profitability where it had lost it, namely in infrastructures, and has found a second engine for growth in devices and AI-related services. This is the foundation that supports Yang's stated goal of bringing Lenovo to 100 billion dollars, a target that will require maintaining the current momentum for two more consecutive fiscal years.