For the fiscal year that ended in March, the PC maker reported a 20% increase in revenue and a 38% increase in profit.
issued Friday, May 22, 2026 · 1:48 p.m.
[HONG KONG] Lenovo Group’s stock price was on track to close at an all-time high on Friday (May 22) after the company reported strong growth in AI-related revenue that offset challenges from higher component prices.
Shares of the world’s leading PC maker rose 17% in Hong Kong, making it the best performer on the Hang Seng China Enterprise Index this year. Despite persistent memory shortages, Lenovo has successfully cultivated new pillars of growth in its data center and storage business to meet explosive AI demand. This allowed us to improve upon the challenges faced by traditional PC businesses.
For the fiscal year that ended in March, Lenovo reported a 38% increase in profits and a 20% increase in sales, surprisingly strong numbers that beat analyst expectations. Lenovo appears to be better able to control the impact of soaring memory prices than console maker Nintendo and others, as it maintained gross profit and sales rose 27% in the March quarter, the fastest pace in five years.
Lenovo’s artificial intelligence products and services were key to its strong performance. AI-related revenue accounted for 38% of the company’s total revenue last quarter and grew 84%, according to a statement on Friday.
“Our hybrid AI vision puts us at the forefront of AI inference and AI democratization, so we are confident that we can achieve our goal of becoming a US$100 billion company within two years,” CEO Yang Yuanqing said in a post-earnings interview.
Supporting the strong growth is the shift from AI training to inference, Yang said. “Inference demand will grow even faster and stronger,” he added. Lenovo plans to start offering Nvidia’s Rubin-based platform in the second half of this year, and the company currently boasts an AI server pipeline worth US$21 billion.
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Lenovo, whose stock has soared more than 60% this year, has joined a global gathering of chipmakers, cloud data center operators and AI model developers seen as winners of the new technology boom. Bloomberg Intelligence analyst Steven Tseng said the company’s latest quarterly results were encouraging, especially with improved performance in its AI infrastructure business.
“Lenovo has never really stood out as a front-runner when it comes to AI,” Tseng says. “But while AI has been undervalued for some time, it is certainly a driver of positive value for companies.”
Lenovo’s share has risen, bucking the trend of other Hong Kong-listed tech companies, but the internet platform faces profitability pressures from intense competition and the need to spend heavily on AI hardware and infrastructure. The Hang Seng High-Tech Index has fallen about 12% since the beginning of the year. bloomberg
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