Lenovo Group Ltd has reported a better-than-expected profit, driven by growth in PC sales and increasing demand for AI infrastructure. The company's Q1 revenue increased by 22% year-on-year to $18.8 billion, with net income surging 108% to $505 million. The core PC business saw its strongest revenue growth in 15 quarters, alongside significant growth in the infrastructure solutions unit, fuelled by AI server demand.
The company's strategic focus on hybrid AI and continuous investment in innovation, with R&D spending up over 10% year-on-year, are key drivers. AI PC penetration is accelerating, accounting for over 30% of all Lenovo PC shipments. Lenovo holds the number one position globally in the Windows AI PC segment with a 31% market share.
Lenovo's diversified growth engines continue to expand, with non-PC revenue mix up nearly half a point year-on-year to 47%. All sales geographies delivered high revenue growth. The company's strategic positioning in AI infrastructure and geographic resilience positions Lenovo for long-term value.
