Lenovo Adjusted Profit Tops $1 Billion as AI Drives Record Revenue

Lenovo, the world’s largest PC maker, has spent years diversifying beyond computers into data-center infrastructure and higher-margin services under its “hybrid AI” strategy. The shift matters because AI demand is broadening from cloud training to enterprise inference, creating opportunities across AI PCs, servers and managed solutions. Nvidia CEO Jensen Huang said at GTC in March that 2026 would be “the year of Lenovo,” a prediction gaining weight as the company converts AI spending into growth across all three business groups.

On Aug. 13, Lenovo reported record revenue of $26.94 billion for the fiscal first quarter ended June 30, 2026, up 43% from a year earlier. Adjusted net income surged 176% to $1.075 billion, topping $1 billion for the first time. AI-related revenue reached $9.3 billion, or 35% of the total, with all three business groups setting quarterly records. ISG sales nearly doubled to $8.5 billion, while SSG revenue rose 28% to $2.9 billion. Lenovo nevertheless posted a reported net loss of $609 million after a $1.69 billion warrant fair-value charge.