China’s Lenovo Group reported a 43% jump in quarterly revenue on Thursday, beating forecasts and sending shares of the world’s largest computer maker surging, as it rides an AI hardware boom and reaps the benefits of a \u200cglobal memory chip \u2060shortage. <\/p>\n
Lenovo’s revenue \u2060rose to $26.94 billion in the three months ended June 30, beating analyst expectations of $22.3 billion, as the consumer electronics hardware giant benefited from artificial intelligence-driven demand and solid PC sales. <\/p>\n
It was the group’s highest quarterly revenue growth in the last five years, as AI-related revenue grew 60% year-on-year to $9.3 billion, accounting for 35% of total revenue in its fiscal first quarter. <\/p>\n
The company swung to a net loss attributable to shareholders of $609 million from a profit of $505 million last year, compared to the average analyst \u2060estimate of $589 \u200cmillion profit, according to data compiled by LSEG. <\/p>\n
The company said the loss was primarily due to a non-cash fair value loss of US$1.7 billion arising from the revaluation \u2060of warrants issued in 2025. Lenovo’s shares hit an all-time high on Thursday before the results announcement, bringing its year-to-date gains to 225%. The shares surged as much as 17% after the results announcement. <\/p>\n
Its U.S. competitors Dell, Hewlett Packard and Super Micro have been some of Wall Street’s best performers this year but have raised prices by 10% to 30% due to soaring NAND and DRAM memory chip costs. Lenovo’s PC, tablet and smartphone division, which accounted for about 64% of total revenue, reported a 27% year-on-year increase in revenue during the \u200cperiod. <\/p>\n
Adjusted net income, which excludes one-off items and non-cash charges, more than doubled to $1.075 billion. R&D expenses jumped 30% year-on-year, the company said. <\/p>\n
Global PC shipments declined by 2% year-on-year in the second quarter of 2026 \u2060to 16.6 million units for the first time since Q1 2025 due to memory-driven cost pressures, according to Counterpoint Research. <\/p>\n
Lenovo retained its market lead in the second quarter, giving it a market share of 25.6%. Its AI server pipeline reached $54.0 billion, up 157% quarter-over-quarter, reflecting demand from hyperscalers, AI cloud and enterprise AI clients, its earnings report said. <\/p>\n
Lenovo’s strong performance comes after the company warned earlier this year of pressure on PC shipments as the industry grapples with a memory chip shortage that is getting more severe. It has also raised PC prices to mitigate the impact of soaring memory costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
China’s Lenovo Group reported a 43% jump in quarterly revenue on Thursday, beating forecasts and sending shares of the world’s largest computer maker surging, as it rides an AI hardware boom and reaps the benefits of a \u200cglobal memory chip \u2060shortage. Lenovo’s revenue \u2060rose to $26.94 billion in the three months ended June 30, beating analyst expectations of $22.3 billion, as the consumer electronics hardware giant benefited from artificial intelligence-driven demand and solid PC sales. It was the group’s highest quarterly revenue growth in the last five years, as AI-related revenue grew 60% year-on-year to $9.3 billion, accounting for 35% […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1028681","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1028681","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=1028681"}],"version-history":[{"count":1,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1028681\/revisions"}],"predecessor-version":[{"id":1028694,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/1028681\/revisions\/1028694"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=1028681"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=1028681"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=1028681"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}