Lenovo Quarterly Revenue Jumps 43% on AI Demand

Lenovo Group reported a 43% increase in quarterly revenue for the period ending June 30, reaching $26.94 billion and exceeding analyst expectations of $22.3 billion. The growth was primarily driven by a 60% year-on-year surge in AI-related revenue, which totaled $9.3 billion and accounted for 35% of the company's total revenue.

Despite the revenue growth, the company reported a net loss of $609 million, a decline from the $505 million profit recorded in the previous year. Lenovo attributed this loss to a $1.7 billion non-cash fair value loss resulting from the revaluation of warrants issued in 2025. However, adjusted net income more than doubled to $1.075 billion.

Lenovo maintained its position as the global leader in the PC market with a 25.6% share. The company's AI server pipeline grew 157% quarter-over-quarter to $54.0 billion. To counter rising industry costs for NAND and DRAM memory chips, the company has raised its PC prices.