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联想2026/27财年Q1业绩直播

Key Takeaways (AI-Generated)

Financial Performance

- Record Q1 revenue of $26.9 billion, up 43% year-over-year, marking highest growth in past five years

- All-time high adjusted net profit of $1.1 billion, up 176% year-over-year, surpassing $1 billion milestone

- AI-related revenues grew 60% year-over-year and now represent 35% of group revenues

- ISG achieved record revenue of $8.5 billion, up 98% year-over-year with operating margin at 9.1%

Business Highlights

- AI server pipeline grew to $54 billion, more than doubling from previous quarter

- Rose to number 2 in global X86 server market with accelerating profitability

- Global PC market share reached 24.2%, widening lead for 10th consecutive quarter

- Motorola delivered highest Q1 revenue since 2015 with record premium revenue mix of 37%

Financial Guidance

- Confident to achieve $100 billion revenue target ahead of schedule, potentially in current fiscal year

- On strong path toward achieving net income margin of over 5%

- Expect total SSG TAM to grow to more than $850 billion by fiscal year 2930

Opportunities

- AI democratization creating enormous opportunities across personal and enterprise AI segments

- Developing AI Super Agent capabilities and hybrid AI advantage framework

- Deepened partnerships with NVIDIA, AMD and Intel for AI infrastructure scaling

- Global local model providing competitive advantages in market expansion

Risks

- Ongoing component supply demand imbalances impacting component costs in challenging operating environment

- Memory pricing cost trends and supply chain constraints in semiconductor market

Full Transcript (AI-Generated)

Speaker

In traditional compute, we rose to number 2 in the global X86 server market with profitability accelerating rapidly. In AI compute, our AI server pipeline grew to 54 billion U.S. dollars, more than doubling from the previous quarter. SSD or Solutions and Services Group delivered another outstanding quarter with revenue up 28% in a year to 2.9 billion U.S. dollars and the operating margin up two points in a year to 24%. Managed Services and Projects and Solutions together accounted for over 62% of SSG revenue reaching a new high after the recently concluded FIFA World Cup.

We delivered the zero fault execution at a massive scale, from front end applications like FIFA Air Crawl, Referee view, AI Stabilizer and the 3D player avatars to our air powered command center working behind the scenes to manage value operations across the tournament. But what excites us more is the big picture of AI democratization. We are taking these capabilities such as the real time data processing and AI powered analytics and extending them deeper into other sports. We are also scaling them across broader industries like smart cities and manufacture, turning private data into tangible business value, and this is already reflected in our performance.

Our true scale business grew 35%. Our AI library drove 50% revenue growth in projects and solutions. Looking ahead, our mission is clear, bringing AI to every individual and every enterprise. On personal AI, we are building AI Super Agent Kila globally and Kanshi in China. They are orchestrated across devices and ecosystems and with context awareness and privacy protection and the foundation that deliver truly personalized, continuous and proactive intelligence for individuals.

On Enterprise AI, we are helping customers turn private data into insights and business value powered by the Lenovo Hybrid AI Advantage framework. Through years of consistent execution of our hybrid AI strategy, we are fully prepared to see the tremendous opportunities of AI democratization. Before I close, let me reiterate. This quarter has once again proven that we not only deliver on our promises, but also have the capability to sustain the delivery.

Operational excellence and relentless innovation are our foundation. Clear strategy and strong execution are our engine. They enable us to not only navigate the market cycles, but to seize the opportunities and win. Earlier this year, we set the goal to reach 100 billion in revenue within two years. Given the momentum we have built in Q1, I'm confident we are ahead of the schedule and on track to achieve it sooner than planned. Thank you. Now let me turn it over to our CFO, Winston. Winston, please.

Winston

Thank you, Yuanqing. I'm pleased to walk you through Lenovo's results for the first quarter of fiscal year 2627. This was a quarter that delivered our strongest performance on record with all time high revenues and adjusted net profit. We delivered a record first quarter revenue of 26.9 billion, up 43% year on year, marking the highest growth in the past five years and delivering the strongest quarter in the group's history.

AI related revenues grew 60% year on year and now represent 35% of group revenues led by our hybrid AI strategy. We're uniquely positioned to capture AI opportunities through a comprehensive business portfolio, spanning devices, infrastructure and services underpinning our broad based performance in the first quarter. All three business groups delivered record first fiscal quarter revenues and operating profits bringing the group's adjusted net profit to an all time high.

In IDG, we strengthened global PC leadership and widened the gap over the next player, while profitability remains stable. Despite a challenging operating environment with ongoing component supply demand imbalances impacting component costs, the smartphone business delivered double digit year on year revenue growth. In ISG, revenue reached record high with both CSP and E and SMB revenues nearly doubling year on year and operating margin expanding to a record 9.1%.

SSG achieved record revenues and continued to expand its operating margin. Adjusted operating income increased 141% year on year to 1.5 billion, while adjusted net income grew 176% year on year to 1.1 billion, surpassing 1 billion milestone for the first time. Adjusted operating and net margins expanded to 5.7% and 4% respectively, supported by higher revenue scale and continued efficiency gains.

Reported net income was a loss of $609 million primarily due to the 1.7 billion non cash fair value loss from warrant revaluation driven by strong share price performance during the first fiscal quarter and a $30 million notional interest from the convertible bonds. After adjusting for these non cash and non operating items, adjusted operating and net income results provide a better reflection of the operating results of the group. Now let me walk you through the key highlights of our business groups.

IDG delivered a record first fiscal quarter revenue of 17.1 billion, up 27% year on year. Operating profit also increased 27% year on year to 1.2 billion, while maintaining an industry leading operating margin of 7.1%, reflecting our operational excellence, supply chain resilience and continued innovation. Our global PC market share reached 24.2% in the first fiscal quarter, widening our lead over next player for 10th consecutive quarter.

We sustained market leadership across commercial and consumer segments and delivered a record first fiscal quarter high AIPC global market share of 25.1% against the challenging operating environment. Lenovo was the only one of the top three PC vendors to gain market share during the quarter while maintaining stable profitability. Our non PC adjacencies delivered double digit revenue growth, driving further premiumization and enhancing our portfolio mix.

In smartphones, Motorola delivered the highest first quarter revenue since 2015, supported by double digit year on year growth and achieved a record premium revenue mix of 37%. A core competitive advantage for Lenovo is our broad and comprehensive device ecosystem, spanning PCs, tablets, smartphones, workstations and other smart devices. Over the past two years, we have rapidly scaled our global install base delivering 12.4% two year CAGR, significantly outpacing the overall device market over the same period.

We continue to gain market share in our AIPC premium smartphones, which builds the foundation for us to deliver our personal AI vision and scale. Looking ahead, we continue to drive growth and profitability through scale advantages, premiumization and new monetization opportunities in adjacencies and other AI devices. Leveraging our global brand recognition and distribution capabilities, ISG continued to accelerate revenue growth with significant margin improvement.

Revenue increased to a record $8.5 billion, up 98% year on year. Operating profit reached a record $777 million, driving operating margin to an all time high of 9.1%. As demonstrated by our strong revenue growth and expanding profitability over the past several quarters, we are confident in our ability to lead the global AI infrastructure industry through our differentiated ODM plus strategy and unique end to end operating model providing sustainable competitive strength.

We saw broad based strength across traditional compute, AI servers and storage. Excluding the impact of international GPU sales in China in the prior year, global AI server revenues delivered triple digit year on year growth. AI server pipeline expanded to $54 billion, up 157% quarter on quarter, driven by accelerating AI infrastructure momentum and a rapidly expanding customer base.

We've also expanded our North Carolina Smart campus, adding meaningful new server manufacturing capacity to capture rising demand from hyperscalers and enterprise customers. This expansion reinforces our commitment to our global local approach, a key advantage we have built over the years to deliver greater efficiency, agility and speed. The exceptional results reflect the success of our dual engine business model with both CSP and enterprise SMB revenues nearly doubling year on year.

Our strength in go to market capabilities and leading technologies including Neptune liquid cooling systems are driving higher value opportunities and accelerating profit growth. Through our deepened strategic partnership with ecosystem leaders including NVIDIA, AMD and Intel, we're scaling our AI infrastructure portfolio to capture opportunities across both training and inferencing workloads. We are also scaling GB 300 deployments to capture growing AI demand while accelerating Vera Rubin Rack solution readiness and time to market.

At the same time, AI adoption among enterprise customers is gaining meaningful momentum. Our enterprise and SMB business is strategically positioned to capture the growing AI inferencing opportunity leveraging a scalable transactional model and simplified pre validated enterprise solutions. Our momentum in AI infrastructure continues to drive customer wins across CSP, enterprise and SMB, underpinned by the strength in our unique ODM Plus model, global operating scale, supply chain agility and leading liquid cooling technology.

In CSP, we delivered an AI factory with over 7000 GPUs for leading AI cloud provider and supported rapid AI expansion of another AI infrastructure provider, the deployment of thousands of servers in enterprise and SMB. We helped an enterprise AI innovator to reduce model training and inference time by 70%, while enabling another AI video analytics provider to deploy intelligence edge AI operational platform, enhancing security through real time analytics and cost effective deployment enabled by our Neptune liquid cooling solutions.

We delivered high density AI factory solutions with 18.3 exaflops of performance, while also helping a leading university to build high performance computing platform with improved energy efficiency, enabling advanced scientific research at scale. These wins reinforce Lenovo's position as a leading AI infrastructure partner for customers and the strength of our execution across diverse segments.

Turning to SSG, SSG delivered record quarterly revenue of $2.9 billion, up 28% year on year, with operating profit increasing 39% year on year to $697 million and operating margin expanding to a record 24.2%. AI Services revenue grew at triple digit year on year, driven by accelerating customer adoption and higher returns from their AI investments. Revenue mix for managed services and Projects and Solutions expanded to a record 62.4% of SSG revenues.

Bookings and TrueScale's Infrastructure as a Service delivered hyper growth driven by AI factory success across both AI cloud and enterprise customer segments. Projects and Solutions revenue growth gained momentum supported by a robust multi quarter booking backlog. SSG is strategically positioned in the fast growing segments defined by AI solutions and services. During the quarter, SSG continued to outperform the market growing at nearly twice the market growth rate.

AI is fundamentally expanding SSG's addressable market, adding over $200 billion of incremental opportunity in this fiscal year alone. We expect total SSG TAM to grow to more than $850 billion by fiscal year 2930, with AI led TAM growing meaningfully faster and nearly doubling over the same period. Through its full stack Enterprise AI framework, SSG brings together infrastructure, platforms, services and industry solutions to help customers move from AI experimentation to production.

To conclude this quarter's results highlights and build on Yuanqing's comments about the FIFA World Cup, I would like to add more color on how Lenovo's full stack AI capabilities were deployed at global scale and the impact this partnership delivered. We delivered a 99.99% solution uptime across all tournament operations while deploying and managing more than 25,000 Lenovo and Motorola devices across more than 600 FIFA sites.

This partnership also became a powerful platform for customer engagement. We hosted 16,000 guests throughout the tournament, including Fortune 500 CEOs, investors, partners and customers, creating meaningful opportunities to deepen relationships and showcase our innovation first hand. The brand impact has been significant. The tournament generated billions of social media impressions and tens of thousands of media stories, and we outperformed in share of voice among all FIFA partners. A powerful new platform for telling the story of Lenovo AI at global scale.

Our strategy is clear, our execution is focused and disciplined. This quarter's results on the back of a record fiscal year marked by record revenue, record profitability and AI related revenue that now represents 35% of the group are not just a one time event. They reflect the compounding effect of our clear strategy, capabilities we have built over decades and execution across every business group and geography.

With our global scale, operational excellence and innovation leadership, we are converting growth into higher shareholder returns. As we enter an accelerated era of AI driven growth, we remain confident in our ability to sustain this momentum and deliver durable profitable growth with even greater resilience and executional strength. We are confident in our ability to deliver the 100 billion revenue target in the near term and are on a strong path toward achieving a net income margin of over 5%. We will now answer any questions you may have.

Moderator

Thank you, Winston. Now we'll move on to the Q&A session. This session will be English only. Please be reminded to limit yourself to two questions at a time. To submit a question, please type your question in the Q&A box on the right hand side and click submit. While we're waiting for the questions, allow me to introduce the management team again.

Other than our Chairman and CEO, Yuanqing Yang, our CFO, Winston Chang will also have the following business leaders with us today for Q&A, Luca Rossi, President of Intelligence Devices Group, Ashley Garoppola, President of Infrastructure Solutions Group and Ken Wang, President of Solutions and Services Group. Now we will open the floor for questions.

The first question we've received from the question list is from Tony John from CLSA asking for our three to five years target of 130 billion U.S. dollar revenue target and 5% plus net margin target. What will be the key drivers for the business scale growth and margin expansion. We've also received a similar question from Power call from Morgan Stanley. What is the main driver to get to the 5% plus net margin target, is this mainly driven by profit improvements from IDG, ISG or SSG? May I please invite our Chairman and CEO, Yuanqing to address this question please?

Yuanqing Yang

Thank you. Thank you for the question. So our strong Q1 performance is a clear testament to our commitment to sustainable revenue and profitability growth. In my view, our ability to sustain long term growth going forward comes from the following areas. First, clear strategy and strong execution as our engine. We firmly believe the broader direction of AI is just the beginning.

We are entering the AI inferencing era, which we are consuming even more computing power than training and private AI built on personal and enterprise private data has barely begun as that attacks share AI demand. We are only growing stronger with our hybrid AI strategy and strong execution. So we are confident in capturing this enormous opportunity. Actually, our years of investment and transformation are already paying off.

AI is now a clear growth engine across every business group. IDG, ISG and SSG all delivering strong double digit year on year growth with improved profitability, our AI revenue accelerated to more than 9 billion dollars now last quarter are now accounting for 35% of group total revenue. Second, our operational excellence is our foundation, our scale with our full stack product portfolio from every category of AI devices and infrastructure.

Our resilient global supply chain built on our global local model, diversified sourcing strategy and strong supply chain supplier relationships as well as the agility and the efficiency of our end to end self controlled operating model have consistently turned the challenges into opportunities despite the market volatility. Finally, our relentless innovation spans both personal AI and enterprise AI on personal AI.

We are driving our vision of one personal AI multiple devices with launch of KIRO on Enterprise AI. Not only our continuous investment on liquid cooling, on edge computing and inferencing have helped our ISG to deliver strong momentum. We are also helping customers turn private data into insights and business value powered by the Lenovo Hybrid AI Advantage framework.

In summary, so the market tailwind certainly helps, but Lenovo's results are far more than just riding the trend. It's the accumulated results of our foundation built over the years enables us to not just navigate the market cycle, but to seize the opportunity. And we thus we are confident to sustain the growth and profitability improvement. Actually as I said at the opening, so we are at the beginning of the fiscal year, we communicate with you.

So we want to achieve 100 billion yearly revenue in two years. But with the strong momentum in Q1, we are ahead of schedule. So we are ready to deliver that in this fiscal year and driving to even higher profitability. Thank you.

Moderator

Thank you very much. So just on this topic, may I please also invite our Group CFO, Winston to add your comments? Yeah, Winston, please.

Winston Chang

Yeah. Just in terms of the path to obviously the target that we have both for the IDG but also in particular ISG business. And we're not even addressing the new acquisition of the storage market, which we added a $38 billion TAM to our position as well for long term growth in excess of the number that we're quoting right now. But in terms of the path to that 5%, as you can see, historically, we've relied a lot on PC.

Today, ISG is becoming a very meaningful contributor and is growing continuously in terms of both revenues. But more importantly, we're growing as a group faster on the profit front. So from that perspective, I think it sets up in a natural course for margin expansion. And of course, that's before our full ramp up on the SSG business as well, which we'll share in the coming quarters. Yeah. Thank you.

Moderator

Thank you, Winston. The next question is really we have received from various analysts and investors asking how do we expect memory pricing cost to trend through the second half and into the next year. So what are the opportunities and risks do we see this create for our business groups and for the group overall? I think for this question, may I please also invite our Chairman, Yuanqing to share your thoughts? Yeah, Yuanqing please.

Yuanqing Yang

First, as I outlined earlier, so AI as a whole is far from a bubble. So actually it's just the first stage of AI democratization. As it evolves and becomes more accessible, it will only generate more demand towards AI democratization. And with that, we believe demand for memory will continue to rise for a considerable period ahead, so at least by the end of next year.

So that means that the supply will be still constrained, but I think Lenovo is in the better position. So in this environment, our resilient supply chain and the operational excellence will clearly benefit us. And I believe this is also another key reason why our performance can be sustained over the long term. In my view, it comes from three aspects.

First is our scale. So we have a full stack of product portfolio from every category of AI devices to infrastructure. Most of the competitors are either in just the consumer devices or infrastructure, while Lenovo has both. That enables us to operate at significantly larger scale. I believe Lenovo is now among the top customers of the major semiconductor suppliers.

Second. So our global local model, particularly our diversified sourcing strategy and the strong relationships with the suppliers across global, not just the suppliers in US, in Korea and in China as well. So actually here, you know, we definitely cannot ignore the China supply. So that gave us a lot of efficient and cost competitive supply. So actually this is the supply chain advantage of our globalization strategy we have built over many years.

Last but not least our resilience based on our end to end business model. So we are very we are probably a very unique company in the industry. We are not just focusing on branding, marketing, sales and service like some of our competitors, but equally strong in manufacturing, in house manufacturing, in house R&D. So we operate end to end model from the product design, demand forecasting, procurement, manufacture all the way to sales and services combining in house capabilities with our ODM plus model.

So that means we have control of the entire value chain so we can react to the market dynamics quickly. So when the material costs rise, so we can adjust the pricing at the front end in a timely manner. So this is truly another unique advantage. So the supply environment is challenging for everyone, but we have consistently turned the challenge into advantage to grow market share and to improve profitability. So this benefit not just our infrastructure business, but IDG PC, smartphone, tablet business as well. Thank you.

Moderator

Thank you very much. We have more questions coming in. And the next question is from Cherima from Macquarie. Question is on IDG. Can you just share updates on outlook for PC and smartphone for the market and also for Lenovo? Do we see different trends between the commercial and consumer segments? So for this question, I'd like to invite our IDG President, Luca Rossi. Luca, over to you.

Luca Rossi

Thank you and thanks for the question, Sherry. So I'll start from the PC market. We have seen in Q1 a relatively stronger than expected market, partially maybe due to a little bit of anticipated demand to mitigate the future cost up. But I will say also due to good demand and adoption of the new AIPC category where

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