Lenovo shares surge on record revenue, AI sales jump 84%

Lenovo’s latest surge looks less like a one-day trade and more like a bet that enterprise hardware can still grow in an AI economy. The Hong Kong-listed company said group revenue in the March quarter reached a record $21.6 billion, up 27% from a year earlier, while net income jumped to $521 million, nearly six times last year’s level. Shares rose 19.32% as investors rewarded one of the clearest signs yet that AI is producing revenue, not just spending.

The most striking figure was the AI line itself. Lenovo said AI-related revenue climbed 84% in the quarter and accounted for 38% of group revenue, a level that suggests the technology has moved from branding exercise to core sales driver. That business spans PCs and smartphones with neural processing units, servers with graphics processing units and services that help customers use data more effectively. In other words, Lenovo is selling the picks and shovels of the AI buildout, not just chasing the software side of the boom.

That distinction matters. The company’s results show that some customers are upgrading for practical AI use cases, especially on devices and in enterprise infrastructure, rather than buying into the hype alone. Chairman and chief executive Yuanqing Yang said Lenovo wants to become a $100 billion company within the next two years, a target that depends on whether hybrid AI spending turns durable. The company is pushing that narrative hard, centering its strategy on a hybrid AI model that spans personal devices and enterprise tools.

The full-year numbers back up the case that this is more than a single-quarter spike. Lenovo said fiscal 2025/26 revenue hit a record $83.1 billion, up 20.3%, while adjusted net income rose 42% to $2 billion. AI-related revenue doubled for the year and made up 33% of group revenue. The Infrastructure Solutions Group also improved, with full-year revenue of $19.2 billion and a $142 million year-on-year increase in operating profit. Research and development spending rose 16% in the quarter and 9% for the year, showing Lenovo is still investing heavily to keep pace.

The broader market backdrop helped too. IDC said global personal computing device shipments rose 7.3% year on year in the fourth quarter of 2025 to 117.8 million units, while PC shipments increased 10.3% to 76.9 million. Lenovo remained the world’s top PC vendor with 24.4% market share. But IDC also expects PC shipments to fall 11.3% in 2026 as memory shortages, higher prices and supply constraints bite, a reminder that the AI hardware cycle is arriving alongside a tougher supply environment.

Lenovo’s own product push reflects that tension. On March 16, 2026, it unveiled Hybrid AI Advantage with NVIDIA in San Jose, California, aimed at production-ready enterprise AI and faster time-to-production. The company said 84% of organizations expect to run AI across on-premises or edge environments alongside the cloud, a sign that demand is shifting toward practical deployments. Even so, Lenovo’s final dividend of 33.70 Hong Kong cents per share shows confidence that the hardware side of AI still has room to run, as long as customers keep upgrading for real work, not just the label.