“With strong momentum across all our businesses, we are confident in our ambition to become a $100 billion company within the next two years,” says Lenovo CEO Yuanqing Yang regarding the company’s Q4 earnings results today.
Lenovo’s record-breaking fourth quarter sales, AI growth and net income sent the tech giant’s stock soaring 18 percent Friday, as CEO Yuanqing Yang unveiled his goal of becoming a $100 billion company.
“Lenovo concluded its best year ever with an exceptional fourth quarter, where we delivered on our promises,” said Yang (pictured above) in a statement Friday. “With strong momentum across all our businesses, we are confident in our ambition to become a $100 billion company within the next two years, while continuing to deliver strong returns for our shareholders.”
The Chinese PC global market leader significantly bested Wall Street analysts’ fourth quarter projections of $18.7 billion in total sales by generating $21.6 billion in revenue during the quarter, which ended March 31, 2026.
[Related: Lenovo Exec Sees AI Demand Straining High-End CPU Supply Amid Memory Crunch]
Lenovo’s total revenue climbed 27 percent year over year, representing the company’s largest growth rate in five years.
For the full year, Lenovo generated $83.1 billion in sales, the strongest full-year results in the company’s vast 42-year history.
Lenovo Group stock (LNVGY) is currently trading at $40 per share, up from $33.92 per share on Thursday.
Why Did Lenovo’s Stock Surge? AI Sales And Net Income
Lenovo’s goal of becoming a $100 billion company in the next two years hinges on AI growth.
Lenovo reported that Q4 AI-related revenue surged a whopping 84 percent year over year and now accounts for 38 percent of the company’s total sales.
Lenovo’s AI-related category includes its flagship devices like PCs and smartphones with processing units, servers with graphics processing units, and services.
One key metric was Lenovo’s skyrocketing net income of $521 million, which represented a 479 percent year-over-year growth rate.
Net income for Lenovo’s full year was $2 billion, up 42 percent year over year, and grew twice as fast as revenue.
“For the full financial year, we deliver both operating and net margin expansion driven by operating efficiency gains, higher scale and strategic revenue mix improvements across the group. Adjusted net income grew 43 percent year-on-year, more than doubling revenue growth,” said Lenovo CFO Shao-Min Cheng in an earnings call for the company.
Lenovo’s Server Pipeline Hits $21 Billion With Over 5,800 AI deployments
Lenovo’s AI server order pipeline reached $21 billion.
The company also reported more than 5,800 customer AI deployments.
For Lenovo’s full year, AI-related revenue more than doubled by growing 105 percent annually.
Lenovo’s annual server manufacturing capacity surpassed 70,000 racks across AI, compute, and storage systems, including more than 11,000 Direct Liquid-Cooled racks built for AI workloads.
Lenovo Earnings Results Breakdown
Lenovo’s Infrastructure Solutions Group (ISG) delivered the highest-ever operating profits and margins since entering the business, with quarterly revenue of $5.6 billion, up 37 percent year over year.
The company’s Intelligent Devices Group (IDG) reported total revenue of $14.6 billion, up 24 percent year over year.
Lenovo’s Solution and Services Group (SSG) generated $2.6 billion in sales, up 19 percent year over year.
“Through firm execution of our Hybrid AI strategy, we are uniquely positioned to lead in the new wave of AI inferencing and democratization,” Yang said.
