Q1 2026 Lenovo Group Ltd Earnings Call Transcript

Aug 13, 2025 / 02:00 AM GMT

Transcript

Key Points

Positve

Lenovo Group Ltd (LNVGF) reported a record-breaking first-quarter revenue of USD 18.8 billion, marking a 22% year-on-year increase.
The company's net income on a non-Hong Kong FRS basis also increased by 22% year on year, highlighting strong financial performance.
Lenovo's PC business achieved over 20% revenue growth, the fastest pace in 15 quarters, and secured a record-high global market share of 24.6%.
The Infrastructure Solutions Group (ISG) delivered a solid 36% year-on-year revenue growth, driven by strong execution of CSP and Enterprise SMB strategies.
The Solutions & Services Group (SSG) achieved a record revenue quarter, growing 20% year on year with more than 22% operating margin.

Negative

Lenovo's profitability was temporarily impacted by strategic investments in AI infrastructure and the transformation of the ESMB business.
The company's gross profit margin was affected by the business mix, particularly due to lower margins in the AI server segment.
Tariff uncertainties continue to pose challenges, although Lenovo has managed to mitigate their impact through its global/local manufacturing strategy.
R&D investment growth decelerated over the last two quarters to 10%, raising concerns about future innovation pace.
The ISG recorded an operating loss of $86 million in the first fiscal quarter, attributed to strategic investments affecting short-term profitability.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

0992.HK - Lenovo Group Ltd
Q1 2026 Lenovo Group Ltd Earnings Call
Aug 14, 2025 / 02:00AM GMT

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Conference Call Participants
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* Lixi Yuan
Lenovo Group Ltd - Director, Investor Relations
* Yuanqing Yang
Lenovo Group Ltd - Executive Chairman of the Board, Chief Executive Officer
* Shao-Min Cheng
Lenovo Group Ltd - Chief Financial Officer, Senior Vice President
* Luca Rossi
Lenovo Group Ltd - Executive Vice President and President of the Intelligent Devices Group
* Sergio Buniac
Lenovo Group Ltd - Senior Vice President - Mobile Business Group, President - Motorola
* Ashley Gorakhpurwalla
Lenovo Group Ltd - Executive Vice President, President of the Infrastructure Solutions Group

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Presentation
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Lixi Yuan, Lenovo Group Ltd - Director, Investor Relations [1]
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