Lenovo Group posted stronger-than-expected fiscal first-quarter earnings, with revenue rising 22% year-on-year to US$18.8 billion and net profit more than doubling to US$505 million. Analysts surveyed by LSEG had forecast US$17.4 billion in revenue and US$308 million in profit. Operating profit reached US$784.8 million, although the gross margin slipped to 14.7% from 16.3% a year earlier. Management said corporate customers accelerated personal-computer purchases ahead of potential new U.S. duties, helping PC shipments rebound. The company added that more than 30% of the machines it shipped during the quarter were equipped with artificial-intelligence functions, while demand for AI servers in China drove triple-digit growth in that segment. Chief Executive Officer Yang Yuanqing told reporters that the recently extended 90-day U.S.–China tariff truce provides greater certainty and that existing levies have had only a “very limited” effect on the business, in part because the United States accounts for less than one-fifth of Lenovo’s sales. He forecast mid- to high-single-digit growth in PC volumes for the fiscal year ending March 2026. Despite the earnings beat, Lenovo’s Hong Kong-listed shares fell as much as 4.6% in early trading, with investors citing margin pressure and lingering trade policy risks.