LENOVO GROUP (00992) releases its interim results, with a net profit attributable to shareholders of USD 846 million, a year-on-year increase of 40%.

LENOVO GROUP (00992) announced its interim financial performance for the 2025/26 fiscal year, with the group achieving revenue of $39.282 billion, an increase of 18% year-on-year; the net profit attributable to equity holders was $846 million, an increase of 40% year-on-year; basic earnings per share were $0.689. The group's revenue and net profit attributable to equity holders increased by 18% and 40% respectively, reaching $39 billion and $846 million, setting a new high for the group's first half-year revenue. Adjusted net profit attributable to equity holders increased by 24% year-on-year after adjustment for non-cash fair value gains on warrants, nominal interest on convertible bonds, and other non-cash items under non-Hong Kong financial reporting standards. Revenue from artificial intelligence-related activities accounted for 29% of the total revenue, an increase of 15 percentage points from the same period last year, primarily driven by the increased proportion of artificial intelligence devices, servers, and services in the business. Research and development expenses increased by 8% year-on-year, demonstrating the group's commitment to accelerating implementation and innovation in its hybrid artificial intelligence strategy. Revenue and operating profit for the Smart Devices business unit increased by 15% and 13% respectively year-on-year, mainly benefiting from the rapid increase in shipments of artificial intelligence computers and strong sales of high-end products. The group achieved a record high global PC market share of 25.6% in the second quarter. Revenue of the Infrastructure Solutions business unit increased by 30% year-on-year, with high double-digit growth in revenue from artificial intelligence infrastructure business driven by the dual strategic focus on cloud infrastructure and enterprise infrastructure businesses. Revenue from Solution Services business unit increased by 19% year-on-year, reaching a historic high, with operating profit increasing by 28% year-on-year. Revenue from maintenance services and projects and solutions accounted for 58.9%, also reaching a record high, primarily driven by favorable trends in digitization of workplaces, artificial intelligence, and hybrid cloud solutions. In the second quarter, the group achieved a historic high revenue of $20.5 billion, surpassing the record set during the COVID-19 pandemic. This equates to a 15% year-on-year revenue increase, with adjusted net profit margin expanding to 2.5%; all business units and regions achieved double-digit year-on-year revenue growth.