Lenovo posted its highest-ever quarterly revenue of US$26.9 billion in the first quarter of fiscal year 2026/27, up 43% year-over-year, as AI-related revenue grew 60% to US$9.3 billion and accounted for 35% of total group revenue. Adjusted net income surpassed US$1 billion for the first time, rising 176% year-over-year, driven by higher revenue scale and continued efficiency gains across all business groups.
The results mark Lenovo's strongest quarter in its history, with every business group delivering record first-quarter revenue and operating profit. The company's Hybrid AI strategy is translating into measurable performance, particularly as the Infrastructure Solutions Group nearly doubled revenue and achieved record profitability.
Infrastructure solutions drive record growth
The Infrastructure Solutions Group posted revenue of US$8.5 billion, up 98% year-over-year, with operating profit of US$777 million and a record operating margin of 9.1%. Growth came from both cloud service providers and enterprise and small-to-midsize business segments, each nearly doubling revenue year-over-year.
Lenovo's AI server pipeline expanded to US$54 billion, up 157% quarter-over-quarter, driven by accelerating investments in AI inferencing and token economy infrastructure. Lenovo also rose to #2 globally in x86 server revenue for traditional compute.
The Intelligent Devices Group reported revenue of US$17.1 billion, up 27% year-over-year. PC market share reached 24.2%, widening the lead over the #2 player by more than five percentage points. Lenovo's AI PC market share increased to 25.1%, and tablet revenue surged more than 80% year-over-year.
The Solutions and Services Group delivered record quarterly revenue of US$2.9 billion, up 28%, with operating profit up 39% to US$697 million and a record operating margin of 24.2%. AI services revenue grew at triple digits as customers moved from experimentation to production, and managed services now account for more than 62% of SSG's revenue.
Operational resilience and supply chain advantages
Lenovo's supply chain achieved its highest-ever ranking in the Gartner Supply Chain Top 25 at #5 globally. The company used its global-local manufacturing model and strong supplier relationships to manage supply constraints and cost pressures effectively during the quarter, turning industry disruptions into a competitive advantage.
Chairman and CEO Yuanqing Yang said: "Following Lenovo's best year in history, we have now delivered our strongest quarter ever - with growth accelerating, profitability further improving, and AI emerging as a clear growth engine across every business group. Powered by our Hybrid AI strategy, operational excellence, and relentless innovation, Lenovo is not only navigating market cycles but also seizing opportunities to win."
Lenovo climbed 43 places to #153 on the Fortune Global 500 list, and expanded its North Carolina Smart Campus with additional server manufacturing capacity to meet hyperscaler and enterprise demand.
Why this matters for IT and strategy professionals
Lenovo's results show that enterprise AI spending is moving from pilots to production. The 98% ISG revenue growth combining 60% overall AI revenue growth suggests customers are deploying AI infrastructure at scale, not just piloting. Infrastructure Solutions and AI server pipeline numbers are signals for IT & Development professionals tracking vendor lock-in risk, capacity planning, and skills demand in distributed AI compute. For AI for Executives & Strategy professionals, the margin expansion across all business units - including a 24.2% operating margin in services - shows that hybrid AI strategies can bring both top-line growth and bottom-line profitability when executed with operational discipline.
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