Lenovo Group (00992) adjusted profit attributable to equity holders increased 176% year-on-year to US$1,075 million in the first quarter, breaking the $1 billion mark for the first time
According to the Zhitong Finance App, Lenovo Group (00992) announced results for the three months ended June 30, 2026. Revenue increased 43% year-on-year to US$26.9 billion, a record high in a single quarter. Gross profit was US$4.452 billion, up 60% year over year. Profit attributable to adjusted equity holders increased 176% year over year to $1,075 million, breaking the $1 billion mark for the first time. Thanks to increased revenue scale and efficiency, the adjusted operating profit margin and net profit margin increased to 5.7% and 4.0% respectively.
Among them, the smart device business group's revenue reached a record high of US$171 billion in the first fiscal quarter, an increase of 27% over the previous year. Despite the challenges of rising commodity costs and increased market competition, operating profit increased 27% to US$1.2 billion year-on-year, and operating profit remained stable at 7.1%, reflecting its continued excellent operating capabilities, supply chain resilience and innovation capabilities. The non-PC peripheral business achieved double-digit year-on-year revenue growth, further optimizing the overall revenue structure and boosting profit margins.
The first fiscal quarter revenue of the infrastructure solutions business reached a record high, rising 98% to US$8.5 billion year-on-year, confirming the strong performance of the computing, artificial intelligence server and storage product portfolio. Thanks to the Group's solid execution, operating profit rose to a quarterly high of US$777 million, and operating margin increased to 9.1%. Thanks to the Group's solid execution, it was able to seize high-value opportunities in a changing environment.
Artificial intelligence server order reserves reached US$54 billion, up 157% month-on-month, covering opportunities such as hyperscale cloud service providers, artificial intelligence clouds, and enterprise artificial intelligence. After excluding the revenue impact of sales of international GPU servers in China during the same period of the year, AI server revenue recorded a three-digit year-on-year increase in the international market. As customer interaction accelerates and the customer base continues to expand, future business visibility will continue to increase.
The Solution Services Group's revenue hit a quarterly high of US$2.9 billion, up 28% year over year; operating profit increased 39% to US$697 million, and operating profit margin also reached a new high of 24.2%. Revenue from artificial intelligence services achieved a three-digit year-on-year increase, confirming the market position of the Solution Service Business Group, which helps expand market share in the rapidly growing artificial intelligence services market, and helps enterprise customers seize opportunities and accelerate return on investment through proven solutions.
According to the announcement, the revenue and operating profit of the three major business groups all hit new highs in the first fiscal quarter, thanks to strong double-digit revenue growth in the equipment, infrastructure and services sectors. The Smart Devices Business Group has further consolidated its leading position in global PCs, continued to widen the market share gap with the second-largest manufacturer, while maintaining strong profitability in the face of continued imbalance between supply and demand for components and increased market competition. The smartphone business achieved a new high in revenue in the first fiscal quarter. The revenue of the Infrastructure Solutions Business Group hit a record high in a single quarter, and revenue from both the cloud infrastructure and enterprise infrastructure businesses nearly doubled year-on-year. Operating margin increased to a quarterly high, demonstrating the Group's ability to successfully transform the accelerated growth in demand from hyperscale cloud service provider customers, new cloud service providers and enterprise customers into profit growth. The Solution Services Business Group hit a new quarterly revenue high, and operating profit margins further increased. Operation and maintenance services and projects and solutions account for a record high revenue share, demonstrating the effectiveness of the business's continuous transformation to a higher value optimization and recurring revenue source model.
Furthermore, adhering to its hybrid artificial intelligence strategy and vision, the Group continues to make progress in innovative leadership and operational excellence, and has recently received many international recognitions and landmark achievements. As the only official technology partner for the 2026 FIFA World Cup™, the Group deployed self-developed artificial intelligence technology and solutions for the tournament on an unprecedented scale, improved the spectator experience for more than 6 billion fans around the world, and supported the operation of all 104 games in 16 cities in 3 countries. By providing end-to-end technology, deploying and managing more than 25,000 devices, and delivering innovative AI-driven technologies such as FIFA AI Pro, referee cameras, and intelligent command centers, the Group successfully implemented various deployments, further strengthening its position as a global leader in artificial intelligence.