Lenovo Revenues Jump 18 Percent to $22.2 Billion

Lenovo reports that it earned a net income of $546 million on revenues of $22.2 billion in the quarter ending December 31, 2025. Those figures represent a decline of 21 percent and a gain of 18 percent, respectively, year-over-year (YOY).

“Lenovo delivered an outstanding performance across all fronts in the third fiscal quarter, with all main businesses achieving strong double-digit revenue growth and AI becoming a leading growth engine,” Lenovo chairman and CEO Yuanqing Yang said. “Looking ahead, as AI increasingly integrates into individuals’ daily lives and enterprise operations, we will continue to drive Hybrid AI to capture the significant opportunities brought by AI democratization, accelerate growth, improve profitability, and deliver long-term value to our shareholders.”

Lenovo’s Intelligent Devices Group (IDG) is responsible for PCs, tablets, and phones. It delivered revenues of $15.8 billion in the quarter for a gain of 14 percent YOY, while the PC and devices unit grew 17 percent, outpacing the rest of the PC industry for the 10th consecutive quarter. Lenovo also hit a record high PC market share of 24.9 percent in the quarter. To be clear, some of this growth is likely tied to fears that PC prices will go up dramatically in 2026 because of the memory shortage.

The company’s Infrastructure Solutions Group (ISG) also experienced a record quarter with $5.2 billion in revenues, up 31 percent YOY thanks to “accelerated AI server momentum.” And the Solutions and Services Group (SSG) hit $2.7 billion in revenues, a gain of 18 percent YOY with growth across multiple verticals; nearly 60 percent of ISG’s revenues came from managed services in hybrid AI environments, Lenovo says.

Unfortunately, Lenovo’s CEO warned that the memory shortage that’s crippling the industry is expected to last through the end of 2026. He said that memory costs have grown 40 to 50 percent since a year ago, which seems to indicate that Lenovo will be forced to raise prices. That, in turn, could slow growth dramatically.