Ge Long Hui·2025-08-26 19:45Core Viewpoint - Lenovo Group reported strong Q1 FY2025/26 results with revenue of $18.83 billion, a year-on-year increase of 22%, and a net profit of $538 million, up 112% year-on-year [1] Group 1: IDG Business Performance - Lenovo's IDG business exceeded expectations, driven by strong growth in both PC and smartphone segments, achieving revenue of $13.46 billion, a year-on-year increase of 17.84% [2] - Global PC sales grew by 6.5% in Q2 2025, with Lenovo's sales increasing by 15.2%, capturing a market share of 24.6%, a historical high [1][2] - Smartphone sales have outpaced the overall market for eight consecutive quarters, with a record high market share outside China, and foldable phone share reaching 51% [2] Group 2: ISG Business Growth - Lenovo's ISG segment reported revenue of $4.29 billion, a year-on-year increase of 35.77%, although operating profit showed a loss of $86 million [2] - The company is capitalizing on the AI infrastructure wave, with cloud infrastructure revenue growing by 36% and enterprise infrastructure revenue by 35% [2] - AI infrastructure revenue doubled year-on-year, indicating strong order reserves and potential for future growth [2] Group 3: SSG Business Performance - Lenovo's SSG segment achieved record revenue of $2.26 billion, a year-on-year increase of 19.75%, with operating profit rising by 26.43% [3] - Support services revenue grew by 12%, while operational services and project solutions saw increases of 36% and 18% respectively [3] - The collaboration between SSG and ISG is enhancing Lenovo's ability to provide end-to-end hybrid AI solutions [3] Group 4: Future Outlook - Lenovo is positioned to leverage its leadership in AIPC and servers to offer comprehensive solutions in the hybrid AI era [3] - The company anticipates net profits of $1.689 billion, $1.990 billion, and $2.296 billion for FY2026 to FY2028 [3]