Lenovo posts record $26.9B quarter with 43% revenue surge, AI now 35% of total sales

Lenovo has reported the strongest quarter in its history, with revenue hitting an all-time high of $26.9 billion in the first fiscal quarter of 2026/27, up 43% year-over-year. This marks the fastest quarterly growth the company has seen in five years.

Adjusted net income jumped 176% to $1.1 billion, crossing the $1 billion milestone for the first time ever. Adjusted net margin improved by nearly two percentage points year-over-year, supported by higher revenue scale and continued efficiency gains across the business.

AI-related revenue was the standout performer, growing 60% year-over-year to $9.3 billion and now accounting for 35% of total Group revenue in Q1. The company also ramped up its innovation spending, with R&D expenses rising 30% compared to the same period last year.

Every business group delivered record first-fiscal-quarter revenue and operating profit. The Infrastructure Solutions Group (ISG) was singled out as a key engine of both growth and profitability, demonstrating Lenovo's ability to translate its Hybrid AI strategy into tangible financial results.

During the quarter, Lenovo also delivered AI solutions and services at scale for the FIFA World Cup 2026, serving as FIFA's Official Technology Partner. The event spans three countries, 16 cities, and 48 teams, giving Lenovo a high-profile platform to showcase its enterprise AI offerings.

The results reflect Lenovo's dual focus: maintaining leadership in PCs and smart devices while rapidly building a position as a global player in AI solutions and infrastructure. With AI now driving over a third of total revenue, the company appears well-positioned to capitalize on continued enterprise demand for AI infrastructure and services.