What just happened? Lenovo Group has started its fiscal year with a strong performance, crediting its adoption of artificial intelligence technologies for a surge in both revenue and profits. The company reported revenue of $18.8 billion for the first quarter of its 2025/26 fiscal year, representing a 22 percent increase from the same period a year ago.
The company defines an "AI PC" as a laptop or desktop equipped with dedicated AI processing hardware; specifically, neural processing units designed to offload AI workloads from the main CPU. These chips allow tasks such as live transcription, AI-assisted creativity, and advanced threat detection to run directly on the device, reducing reliance on cloud computing. In the first quarter, more than 30 percent of Lenovo's PC shipments were classified as AI PCs, and the company took the number one spot in the global Windows AI PC market with a 31 percent share.
According to executives, these new AI-enabled devices are intended to be more than just a marketing tool. Lenovo is betting that the next generation of buyers will come to expect locally run AI features. This is reflected in the broader upward trends for the Intelligent Devices Group, where overall revenue jumped 18 percent to $13.5 billion. The PC and smart devices business posted 19 percent revenue growth, its fastest rate in 15 quarters, driving Lenovo to a record market share of 24.6 percent worldwide.
Beyond personal computing, Lenovo's Infrastructure Solutions Group delivered another strong quarter as organizations ramped up investment in AI-ready data centers. Revenue for this group rose 36 percent year-on-year to $4.3 billion, helped by robust demand for AI infrastructure and related technologies. AI-specific infrastructure sales, including servers equipped with accelerated computing and liquid cooling, more than doubled compared to the prior year.
These results come as the global PC market attempts to recover from the turbulence of the past two years. While total industry shipments have yet to return to their pandemic-era highs, Lenovo says its supply chain flexibility, large-scale manufacturing presence, and aggressive pursuit of the AI PC opportunity have enabled it to pull ahead of rivals like HP and Dell in both traditional and AI-enhanced segments.
Challenges remain, including fluctuating global demand, political risks, and the question of whether AI features will translate into sustained consumer upgrades or prove to be a passing fad. Lenovo is responding by investing in R&D – an area that saw a 10 percent increase in spending year-on-year – which management believes is critical to maintaining an innovation advantage in both personal and enterprise AI.
Lenovo achieves record sales on strength of AI PCs and data center growth
