$21.6bn quarter, AI revenue nearly doubles, full year crowned the best in the company’s history.
Lenovo posted Q4 revenue of $21.6bn, up 27% year-on-year and roughly $2.2bn ahead of consensus, sending shares up about 15% on Friday in Hong Kong.
Net profit attributable to shareholders jumped 479% to $521m, almost double the $271m analysts had penciled in, according to data compiled by CNBC.
The PC business, long the spine of the company, did most of the work. Lenovo’s Intelligent Devices Group reported a 26% rise in PC and smart-device revenue, with shipments up 9% to 16.5 million units.
That gave Lenovo a 26% global market share for the quarter, a five-year high. The PC cycle has turned in 2026 on a combination of an enterprise refresh, the end-of-life of Windows 10 in commercial fleets, and the early rollout of AI-capable Copilot+ devices.
The AI business is the part of the print that markets reacted to. AI-related revenue grew 84% in the fourth quarter and accounted for 38% of group revenue, according to CNBC.
Lenovo’s Infrastructure Solutions Group, which sells the server hardware that underpins large enterprise and cloud AI deployments, has been the company’s fastest-growing segment for several quarters, with a reported $15.5bn order pipeline.
That puts Lenovo into direct competition with Dell, HPE and Supermicro on AI server share, in a market where the bottleneck remains Nvidia GPU allocation rather than demand.
Chairman and chief executive Yang Yuanqing called fiscal 2026 the best year in Lenovo’s history. Full-year revenue came in at $83.1bn, with adjusted net income up 42% to $2.0bn, according to coverage from 36Kr. Earlier in the year, Yang flagged that annual revenue could reach roughly 560 billion yuan, a forecast the company has now met.
What Lenovo did not detail on the call, and what bears and bulls will both want from the next quarter, is the gross-margin trajectory of the AI server business. The ISG segment has spent the last year moving from restructuring losses into growth, but AI servers carry thinner margins than PCs and depend heavily on whether Lenovo can secure GPU allocation at competitive prices.
Bamboo Works’ analysis of the company has flagged ongoing geopolitical exposure, particularly around US export controls on advanced chips into China, as a factor that the print did not fully address.
For now, the takeaway is unambiguous. Lenovo’s Q4 is one of the cleanest beats in the global PC and server complex this earnings season, and the share move reflects it.
Whether the company can hold the AI-revenue trajectory into the next fiscal year depends on supply, on Copilot+ adoption holding up beyond the initial refresh wave, and on whether enterprise customers continue to buy Lenovo’s integrated stack rather than shop the components individually.
The forward guide will be the next data point. Yang has signalled that AI workloads will keep driving server demand and that hybrid AI on the PC remains a multi-year story. For a quarter, at least, both have shown up in the numbers.
