Lenovo Group (992) Q4 2026 earnings summary

Executive summary

• Achieved record annual revenue of $83.1 billion, up 20% year-on-year, and record fourth quarter revenue of $21.6 billion, up 27% year-on-year, with all business groups delivering double-digit growth driven by AI momentum and market share gains.

• Adjusted net income doubled year-on-year in Q4; full-year adjusted net income grew 42% year-on-year to $2.05 billion, outpacing revenue growth.

• AI-related revenue surged 84% year-on-year in Q4, now representing 38% of total Group revenue.

• All business groups (IDG, ISG, SSG) delivered double-digit revenue growth and margin expansion, with expanded market share across all segments despite macroeconomic headwinds.

• Set a target to reach $100 billion in revenue within two years, driven by operational excellence and AI innovation.

Financial highlights

• Q4 revenue: $21.6 billion, up 27% year-on-year; full-year revenue: $83.1 billion, up 20% year-on-year.

• Q4 adjusted net income doubled year-on-year to $559 million; full-year adjusted net income $2.05 billion (+42% YoY); adjusted operating income $3.13 billion (+27% YoY).

• Gross margin for Q4 and FY was 16.4% and 15.4%, respectively; operating profit rose 51% to $3.26 billion.

• Basic EPS for FY: $0.1563, up 38% YoY; total dividend declared: HKD 0.422 per share, highest ever.

• Net profit attributable to equity holders increased 38% to $1.91 billion.

Outlook and guidance

• Confident in achieving $100 billion revenue target in two years, leveraging device leadership, AI infrastructure, and scaling services.

• Focused on building an AI-native company, deploying next-gen AI devices, and expanding AI solutions and services.

• Expect continued margin expansion, especially in ISG and SSG, as AI infrastructure and TruScale services scale.

• Ongoing investment in R&D, particularly in AI-focused innovation, with R&D expenses up 9% year-on-year.

• Anticipate unit shipments in PCs to be down year-on-year, but revenue to grow due to higher average unit revenue.