Lenovo Group released its results for the first quarter of fiscal 2026/27, reporting revenue of $26.9 billion, up 43% from a year earlier and the highest quarterly revenue in its history. Gross margin was 16.5%, up 1.8 percentage points year over year.
Loss attributable to equity holders was $609 million. The company said this was mainly due to a non-cash fair value loss generated by the revaluation of $1.7 billion in warrants. On an adjusted basis, profit attributable to equity holders reached $1.075 billion, up 176% from a year earlier and above $1 billion for the first time. Adjusted diluted earnings per share were 7.39 U.S. cents, also up 176%.
All three major business groups set first-quarter records
The Intelligent Devices Group posted revenue of $17.1 billion, up 27% year over year. Lenovo said its global PC market share stood at 24.2%, while its AI PC market share reached 25.1%. Smartphone revenue also hit a record high for a first quarter.
The Infrastructure Solutions Group reported revenue of $8.5 billion, up 98% from a year earlier, with operating margin rising to 9.1%. Its AI server backlog reached $54 billion, up 157% from the previous quarter.
The Solutions and Services Group posted revenue of $2.9 billion, up 28% year over year. Its operating margin was 24.2%.
AI-related revenue accounted for 35% of total revenue
Lenovo said AI-related revenue rose 60% year over year and made up 35% of total revenue. As an official technology partner of the FIFA World Cup, the group deployed AI technology and more than 25,000 devices across all 104 matches.
Regional growth and rankings
By region, revenue in the Americas rose 58% year over year, Europe, the Middle East and Africa grew 53%, and China increased 25%.
The company also entered the top five in Gartner's global supply chain ranking and moved up to No. 153 on the Fortune Global 500 list.