Lenovo Group (0992.HK) swung to a first quarter net loss attributable to equity holders of $609 million, compared to net income of $505 million in the prior year period.
Earnings per share came in at a loss of 5.04 US cents, reversing a profit of 3.65 US cents recorded in the same quarter last year.
Despite the headline loss, adjusted net income surged 176% year-on-year to $1.1 billion, signaling that underlying business performance remained strong across key segments.
Adjusted net margin improved by almost two percentage points year-on-year, supported by higher revenue scale and continued efficiency gains across the group.
Group revenue reached $26.9 billion for the quarter, representing a substantial 43% increase compared to the same period a year earlier.
AI-related revenue was a standout performer, growing 60% year-on-year to $9.3 billion and accounting for 35% of total group revenue in the quarter.
Research and development expenses climbed 30% year-on-year, reflecting Lenovo’s ongoing commitment to innovation across its product portfolio and AI capabilities.
Revenue from PCs and smart devices rose nearly 30% year-on-year, while tablet revenue delivered an even more impressive surge of more than 80% over the same period.
The smartphone business also contributed positively to results, generating revenue growth of 15% compared to the prior year quarter.
Lenovo shares responded positively to the earnings release, trading on the Stock Exchange of Hong Kong at HK$34.04, a gain of 17.22% on the session.
The results illustrate a company navigating a period of significant investment and transition, with AI becoming an increasingly central pillar of its overall revenue strategy.
As AI-related products and services continue to scale, Lenovo’s adjusted profitability metrics suggest the group is building a stronger foundation for sustained growth heading into the remainder of the fiscal year.
