Lenovo just posted the strongest financial year in the company’s history, and yeah, AI is a huge reason why. The company pulled in a record $83.1 billion in revenue for fiscal year 2025/26, up 20 percent year over year. Adjusted net income climbed 42 percent to just over $2 billion.
That is a lot of money for a company many folks still mainly associate with ThinkPads sitting on office desks.
But Lenovo is becoming much more than a PC company. Between AI servers, enterprise infrastructure, services, smartphones, and AI PCs, the company is now spread across nearly every hot area in tech. Whether all this AI spending ends up paying off long term is another conversation entirely, but right now Lenovo is clearly benefiting from the frenzy.
The fourth quarter alone brought in $21.6 billion in revenue, up 27 percent from the same quarter a year ago. Adjusted profit more than doubled to $559 million.
Lenovo says AI-related revenue jumped 84 percent year over year in Q4 and accounted for 38 percent of total company revenue during the quarter. For the full fiscal year, AI-related revenue doubled and made up roughly one-third of Lenovo’s total business.
That AI category includes AI PCs, smartphones with NPUs, GPU servers, and AI services.
The infrastructure side of the business may actually be the most interesting part here. Lenovo’s Infrastructure Solutions Group posted record quarterly revenue of $5.6 billion, up 37 percent year over year, while delivering $202 million in operating profit. The company says it now has a $21 billion AI server pipeline and more than 5,800 customer AI deployments.
That is not small-time experimentation anymore. Enterprises are spending serious money on AI infrastructure right now, and Lenovo wants a big piece of it.
The company also says it shipped its first GB300 NVL72 racks last quarter and is preparing Rubin-based systems for release later this year. Lenovo’s annual manufacturing capacity now exceeds 70,000 racks across AI, compute, and storage systems, including more than 11,000 direct liquid-cooled racks designed specifically for AI workloads.
Meanwhile, the PC business is still doing what Lenovo’s PC business does – making piles of money.
The Intelligent Devices Group generated $14.6 billion in quarterly revenue, up 24 percent year over year. Lenovo says it maintained the number one global PC position with 24.4 percent market share.
The company also pointed out that premium PCs accounted for half of shipments during the quarter. That is important because higher-end systems typically mean better margins.
Motorola also had a strong quarter. Lenovo says the smartphone business achieved record Q4 shipments alongside double-digit revenue growth. Motorola has quietly become relevant again in several markets, especially with foldables and lower-cost Android devices.
One thing I found interesting is how hard Lenovo is leaning into the phrase “AI democratization.” Tech companies love tossing around language like that lately, but regular people still are not fully sold on AI PCs. Most buyers still care more about battery life, thermals, keyboards, repairability, and price than whether a laptop has an NPU inside it.
That does not mean AI PCs will fail. It just means the industry still has work to do convincing folks these features matter outside of keynote presentations and marketing demos.
Chairman and CEO Yuanqing Yang said, “Lenovo concluded its best year ever with an exceptional fourth quarter, where we delivered on our promises. 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. Through firm execution of our Hybrid AI strategy, we are uniquely positioned to lead in the new wave of AI inferencing and democratization.”
Lenovo also says it plans to become a $100 billion company within the next two years. Ambitious? Sure. Impossible? Not really. The company is already above $83 billion annually, and AI infrastructure spending still seems completely out of control across the industry.
The bigger question is what happens if AI spending cools off? Right now, just about every major tech company is racing to build AI data centers, AI servers, AI PCs, and AI software ecosystems all at once. At some point, somebody is going to want proof all this spending is generating meaningful returns.
Still, for now, Lenovo looks well positioned. The company is growing across PCs, servers, smartphones, and services simultaneously, which is not something many hardware vendors can say in 2026.
