Lenovo closes its best year ever and Asia Pacific led the charge

AI infrastructure and hybrid computing drove record performance across the region as Lenovo sets its sights on a US$100 billion future.

Lenovo ended fiscal year 2025/26 the way few technology companies of its scale can claim to: with every business unit growing, its infrastructure division turning profitable, and AI revenue more than doubling year-on-year. The numbers released today mark what the company is calling the strongest year in its history, and for Asia Pacific, that record-setting performance carried its own headline.

According to Lenovo, Asia Pacific, defined as the region excluding China, delivered US$16 billion in revenue for the full fiscal year, a 23% year-on-year increase that made it the company's fastest-growing geography globally. Growth across the region was attributed to hybrid AI solutions, a strengthened infrastructure business, continued PC market leadership, and accelerated momentum for the Motorola smartphone brand across key markets.

At the Group level, full-year revenue crossed US$80 billion for the first time, reaching US$83.1 billion, a 20% increase year-on-year. Adjusted net income grew 42% to US$2 billion, expanding at roughly twice the pace of revenue, which points to meaningful operating leverage rather than just top-line scale. The fourth quarter alone delivered revenue of US$21.6 billion, up 27% year-on-year and the highest growth rate the company has posted in five years, with adjusted net income doubling to US$559 million.

The clearest signal of where Lenovo is placing its bets sits in the AI revenue line. AI-related revenue, spanning NPU-equipped PCs and smartphones, GPU servers, and AI-enabling services, grew 105% year-on-year for the full fiscal year, accounting for 33% of Group revenue.

In Q4 alone, that figure climbed to 38%, with AI-related revenue up 84% year-on-year.

The company's definition of AI revenue is worth noting: it covers AI Devices (PCs and smartphones with neural processing units), AI Servers (GPU servers), and AI Services that enable customers to build, scale, and manage AI workloads, a broader definition than some peers apply, but one grounded in actual product categories.

The Infrastructure Solutions Group, which has been the most scrutinised part of Lenovo's portfolio over the past two years, delivered what the company described as its strongest performance since entering the business. ISG posted record full-year revenue of US$19.2 billion, up 32% year-on-year, and returned to full-year profitability with an operating profit of US$73 million, a US$142 million improvement on the prior year.

The AI server pipeline stands at US$21 billion with more than 5,800 customer deployments logged. Annual manufacturing capacity for server racks has surpassed 70,000 units, including more than 11,000 Direct Liquid-Cooled racks built specifically for AI workloads. Chairman and CEO Yuanqing Yang framed the quarter as proof of execution rather than aspiration.

"We returned our Infrastructure Solutions Group to a sustainable and profitable growth trajectory and achieved hyper-growth by capturing the opportunity of the booming AI infrastructure market," he said.

Yang added that Lenovo is targeting US$100 billion in revenue within two years, a figure that implies sustaining the kind of growth rates just posted, in a market environment that remains far from settled. The Solutions and Services Group crossed US$10 billion in annual revenue for the first time, up 19% year-on-year, with operating margins above 20%.

A record 62% of SSG revenue came from Managed Services and Project and Solutions, the higher-value, recurring end of the portfolio, which matters for channel partners tracking where the services opportunity is shifting.

For the Intelligent Devices Group, full-year revenue reached US$58.9 billion, up 17%, with Lenovo holding 24.4% global PC market share in Q4, its highest fourth-quarter figure on record. The gap between Lenovo and the second-ranked PC vendor is now the widest it has been in 15 years.

The acquisition of enterprise storage company Infinidat, completed in early April, was flagged as a strategic addition to ISG's high-end storage capabilities, with the long-term case built around margin expansion and broader enterprise market access.

R&D spending rose 9% for the full year to 3% of Group revenue, and 16% in Q4 alone, a rate of investment that Lenovo's leadership is clearly treating as a competitive necessity rather than an overhead.