APAC accounts for 20% of Lenovo’s global revenue

According to Lenovo’s Q1 FY25/26, APAC recorded robust growth with US$3.7 billion in revenue and a 39% year-on-year growth, accounting for 20% of the Group’s global revenue.

Lenovo Group Limited announced strong first quarter results for the fiscal year 2025/26, reporting revenue growth of 22% year-on-year to US$18.8 billion, with net income up 108% year-on-year to US$505 million. The Asia Pacific region in particular recorded robust growth with US$3.7 billion in revenue and a 39% year-on-year growth, accounting for 20% of the Group’s global revenue.

Driving the results includes Lenovo’s hybrid AI vision that capitalized on unprecedented AI opportunities. A strong commitment to continuous investment in innovation, which saw R&D spending increase over 10% year-on-year, as well as operational excellence for a balanced global sales footprint also contributed to the results.

“By leveraging the resilience and flexibility of our supply chain and operational excellence, we overcame challenges brought by tariff volatility and the geopolitical landscape and achieved significant growth in both top and bottom lines. These record Q1 results underscore our ability to deliver on our promise to preserve competitiveness and continuously grow our business,” commented Yuanqing Yang, Chairman and CEO of Lenovo stated.

The Intelligence Devices Group (IDG) recorded nearly 18% year-on-year grow overall to US$13.5 billion. This includes the PCs and smart devices business, which also delivered 19% year-on-year revenue growth, with all geographies achieving double-digit year-on-year revenue growth in PCs and smart devices.

The PC business reported strong growth following the highest year-on-year revenue growth rate in 15 consecutive quarters and an all-time high market share of 24.6%. The AI PC penetration also accelerated, accounting for more than 30% of all Lenovo PC shipments. Lenovo currently ranks #1 globally in the Windows AI PC segment with a 31% market share.

Meanwhile, the Infrastructure Solutions Group (ISG) also delivered strong revenue growth of up 36% year-on-year to US$4.3 billion through a strong execution of its CSP (Cloud Service Provider) and E/SMB (Enterprise and SMB) dual strategy. Specifically, the AI infrastructure business revenue more than doubled year-on-year with a robust pipeline and a clear product roadmap ahead. Revenue from industry-leading liquid cooling solutions grew 30% year-on year.

Building on hybrid AI, the Solutions and Services Group (SSG) recorded high growth and high profitability, unleashing Lenovo hybrid AI Advantage Q1 FY25/26 performance. SSG delivered record quarter of revenue, up 20% year-on-year to US$2.3 billion, marking 17 consecutive quarters of year-on-year revenue growth.

Interestingly, managed services, and “as-a-Service” offerings, along with Projects and Solutions grew even faster with TruScale Infrastructure-as-a-service delivering triple-digit growth year-on-year in signings, and TruScale Device-as-a-service seeing double-digit growth for the quarter. Their combined mix increasing three points year-on-year to 58% of SSG’s total revenue

Looking ahead, Yang said that Lenovo will continue to firmly execute its hybrid AI strategy towards the vision of Smarter AI for all, relentlessly drive innovation in personal AI and enterprise AI products and solutions and consistently strengthen its operational competitiveness so that Lenovo can realize sustainable growth and profitability improvement.