Lenovo Group reported record fiscal first-quarter results, with revenue rising 22% year-on-year to US$18.8 billion and net profit surging 108% to US$505 million, comfortably ahead of analyst estimates. Operating profit reached US$784.8 million while gross margin slipped to 14.7%. The world’s largest PC maker said demand for artificial-intelligence hardware and an acceleration of corporate computer purchases ahead of potential new U.S. tariffs underpinned the performance. AI-enabled PCs accounted for more than 30% of shipments, topping a 25% target, and AI server revenue jumped 150% from a year earlier. Chief Executive Officer Yang Yuanqing told reporters the recently extended U.S.–China tariff pause provides greater certainty and that existing levies have had a “very limited” effect on the company, which generates less than 20% of its sales in the United States and operates over 30 factories across more than 10 countries. Despite the earnings beat, Lenovo’s Hong Kong-listed shares fell roughly 4–5% in early trading, with investors citing concerns about losses in the fast-growing cloud unit. Yang forecast global PC shipments would increase by a mid- to high-single-digit percentage in the current fiscal year, with Lenovo outpacing the market.
China's @Lenovo Posts Record Fiscal First-Quarter Revenue as AI PCs Fuel Growth https://t.co/9FBFpWCXax
Chinese PC maker Lenovo says US-China tariff pause a positive sign https://t.co/9JBy5kzXbf https://t.co/9JBy5kzXbf
Lenovo CEO Yang says “The tariff impact is very limited now," giving them a clearer path for AI-driven growth. AI PCs made up more than 30% of shipments, above the 25% target, with over 40% of users in China activating the AI agent software weekly. Fiscal Q1 smart device https://t.co/OpoiGDdazw