

Core Insights - Lenovo Group reported a strong Q1 performance for the fiscal year 2025/26, with revenue increasing by 22% year-on-year to 136.2 billion RMB, significantly exceeding market expectations of 13.7% and achieving a historical high for the same period [1] - The company's net profit under non-Hong Kong Financial Reporting Standards also grew by 22% to 2.816 billion RMB, indicating enhanced profitability [1] - Lenovo's diversified growth strategy has led to a 47% revenue contribution from non-PC businesses, supporting a balanced growth structure and facilitating the company's AI strategy [2] Financial Performance - The IDG smart device business group achieved revenue of 97.3 billion RMB, a year-on-year increase of 17.8%, surpassing market expectations of 11.46% [1] - The ISG infrastructure solutions business group saw a robust revenue growth of 35.8%, exceeding market expectations by over 10 percentage points [1] - The SSG solutions services business group reported a revenue increase of 19.8%, also surpassing market expectations of 13.44% [1] AI Strategy and Innovation - Lenovo is leveraging its "Hybrid AI" strategy to drive growth across its business segments, with a focus on both personal and enterprise intelligence [2][3] - The company has launched AI PC products featuring the "Tianxi" personal super intelligent system, achieving over 30% penetration in the global AI PC market [3] - Lenovo's AI infrastructure revenue grew by 155% year-on-year, reflecting the company's commitment to building a comprehensive AI product ecosystem [3] Management Commentary - CEO Yang Yuanqing emphasized the company's ability to navigate macroeconomic challenges, including tariffs, while maintaining competitiveness and market share [1] - The management highlighted the importance of focusing on core operational performance as measured by non-Hong Kong Financial Reporting Standards, especially in light of non-cash gains from stock price fluctuations [4]