Lenovo today reported fourth quarter and full year results for fiscal year 2025/26, marking an exceptional Q4 and the strongest year in the Group’s history. During the quarter, overall Group revenue reached an all-time fourth quarter high of US$21.6 billion, up 27% year-on-year, marking the highest year-on-year growth rate in five years, with adjusted net income[1] doubling year-on-year to US$559 million. AI-related revenue[2] stood out as a leading growth engine, growing 84% year-on-year to account for 38% of total Group revenue in Q4.
The fourth quarter and full-year results demonstrate the Group’s ability to sustain growth and strengthen its competitive position while navigating a complex external environment marked by supply shortages and rising component costs. Its operational excellence – underpinned by a balanced global business and manufacturing footprint, and global-local operating model – has delivered strong structural resilience in a volatile environment. The Group also continued to increase investment in innovation, with R&D expenses rising 16% year-on-year in the fourth quarter to 3.5% of Group revenue and increasing 9% year-on-year to 3% of full year Group revenue. At the same time, continued progress in delivering its Hybrid AI vision is positioning Lenovo at the forefront of the AI inferencing and democratization era.
Read more in the full press release.
[1] Note on adjusted net income: Adjusted measure was defined as financial metric by excluding net fair value changes on financial assets at fair value through profit or loss, amortization of intangible assets resulting from mergers and acquisitions, impairment and write-off of intangible assets , property, plant and equipment and construction-in-progress, fair value change on derivative financial liabilities relating to warrants, one-time income tax credit, restructuring charges, dilution gain on interests in associates and a joint venture, impairment of interests in associates, gain on deemed disposal of a subsidiary, and notional interest on convertible bonds; and the corresponding income tax effects, if any.
[2] Note on AI-related revenue: AI Devices: PCs and Smartphones equipped with NPU; AI Servers: GPU Servers; AI Services: Services that enable customer to build, scale & manage AI.
