Chinese technology giant Lenovo reported a 43% year-on-year increase in first-quarter revenue, as strong demand for artificial intelligence infrastructure and devices boosted growth across its business.
The world’s largest PC maker recorded revenue of $26.94 billion for the three months ended June 30th, surpassing analyst expectations of $22.3 billion. AI-related revenue climbed 60% to $9.3 billion, accounting for approximately 35% of Lenovo’s total quarterly revenue.
Lenovo’s growing position in the AI infrastructure market was a major driver of the performance. Its AI server pipeline reached $54 billion, representing a 157% increase from the previous quarter, supported by demand from hyperscalers, AI cloud providers and enterprise customers.
However, the company reported a $609 million net loss attributable to shareholders, compared with a $505 million profit a year earlier. Lenovo said the loss was mainly caused by a $1.7 billion non-cash fair value loss related to the revaluation of warrants issued in 2025. Excluding one-off and non-cash items, adjusted net income more than doubled to $1.075 billion.
The company also navigated rising memory chip costs by relying on its global supply chain and diversified suppliers across China, South Korea and the United States. Like other major computer manufacturers, Lenovo has raised PC prices to offset higher NAND and DRAM costs.
Despite pressure on global PC shipments, Lenovo maintained its market leadership with a 25.6% market share in the second quarter. Its PC, tablet and smartphone division, which generates about 64% of total revenue, recorded 27% year-on-year growth.
Lenovo’s strong quarterly performance pushed investor confidence higher, with its shares reaching a record level and extending their gains for the year.
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