Lenovo shares surge 15% as Q4 revenue beats estimates on PC and AI strength
Strong consumer demand and a $21 billion AI server pipeline drive Lenovo’s fiscal fourth-quarter results, making it the top gainer on the Hang Seng Index.
Lenovo Group reported a 27% increase in quarterly revenue to $21.6 billion for the period ending March 2026, significantly exceeding analyst estimates of $18.7 billion. The Chinese technology firm’s shares rose 15% on Friday, making them the largest percentage gainer on the Hang Seng Index. Net profit attributable to shareholders surged 479% to $521 million, beating expectations of $271 million.
Revenue growth was driven by a 24% increase in the company’s PC, tablet, and smartphone division, marking the highest quarterly growth rate in five years. Lenovo’s shipments grew 9% to 16.5 million units, outpacing the global market rise of 3.2% and capturing a 26% market share. Strong consumer demand for personal computers ahead of potential price hikes helped the company expand its footprint despite industry-wide challenges.
The firm’s infrastructure solutions group, which includes its AI server business, posted 37% revenue growth, the fastest among its business segments. Lenovo is accelerating its push into the AI inference market, with an AI server order pipeline now valued at $21 billion. This diversification has provided a robust counterbalance to hardware supply constraints affecting other sectors.
Despite a severe global memory chip shortage, Lenovo managed to maintain its growth trajectory. Memory chip prices doubled in the first quarter of 2026 compared to the previous period and are forecast to climb up to 63% in the current quarter due to artificial intelligence data centre demand. The company raised PC prices to mitigate the impact of soaring memory costs and utilised a diversified supplier base, including Chinese producers, to manage supply constraints.
Lenovo CEO Yang Yuanqing stated that the supply of memory chips is in heavy shortage and costs are growing faster, but the company’s diversified supplier base helped manage the impact. China’s top memory chipmaker, ChangXin Memory Technologies, identified Lenovo as a major customer in its prospectus filed earlier this month. ChangXin reported a more than 700% jump in first-quarter revenue due to the surge in memory chip prices.
