AI Drives Lenovo to Record $26.9B Revenue, Shares Jump 17%

Chinese company Lenovo reported financial results for the first quarter of fiscal 2027, which recently ended. Revenue grew by 43% year-over-year to a record $26.9 billion, the highest in the company's history. Net profit rose 176% to $1.1 billion, surpassing the one-billion-dollar mark for the first time. AI segment revenue grew 60% to $9.3 billion, now contributing 35% of total revenue. R&D expenses increased 30% to $682 million. The smart devices segment (IDG), covering PCs, tablets, and smartphones, grew 27% to $17.1 billion, with PC and smart device revenue up 30%. Operating margin held at 7.1%, with operating profit up 27% to $1.2 billion. Lenovo continues to widen its lead in the PC market, holding 24.2% share. Smartphone revenue grew 13%, with premium models (Moto Razr, Signature, Edge) accounting for 37% of that revenue. Tablets grew 83% to a seasonal record. The infrastructure segment, including servers, saw revenue jump 98% to a record $8.5 billion, with operating margin at 9.1%. International sales of AI servers grew triple-digit percentage, and AI server orders rose 157% sequentially to $54 billion. Solutions and services revenue grew 28% to $2.9 billion with a record operating margin of 24.2%. By the end of the decade, Lenovo expects the AI services market to nearly double to $850 billion, with AI potentially forming half of its revenue. Shares rose 17% after the report, and are up 225% year-to-date. Net losses of $609 million were mainly due to revaluation of warrants issued in 2025, which did not upset investors.