Financial Data and Key Metrics Changes - The company reported a record high first quarter revenue of $18.8 billion, representing a 22% year-on-year growth [3][15] - Net income on a non-HKFRS basis increased by 22% to $389 million, while on an HKFRS basis, net income more than doubled to $500 million [4][16] - Non-PC revenue mix reached 47% of total revenues, indicating a significant diversification in revenue streams [5][16] Business Line Data and Key Metrics Changes - The Intelligent Device Group (IDG) generated $13.5 billion in revenue, an 18% year-on-year growth, with PCs and related businesses growing by 19% [6][24] - The Solutions and Services Group (SSG) achieved a record revenue of $2.3 billion, marking a 20% year-on-year increase with an operating margin of over 22% [10][29] - The Infrastructure Solutions Group (ISG) saw a 36% year-on-year revenue growth, reaching $4.3 billion, although it recorded an operating loss of $86 million due to strategic investments [8][28] Market Data and Key Metrics Changes - In China, revenue surged by 36% year-on-year, driven by strong AI PC shipments and leadership in the commercial segment [18][19] - The Asia Pacific region, excluding China, experienced a 39% revenue growth, with significant market share gains in Japan and India [19] - The Americas saw PC market share gains for the ninth consecutive quarter, while EMEA recorded strong bookings in Device as a Service and Software Solutions [19] Company Strategy and Development Direction - The company is executing a hybrid AI strategy aimed at capitalizing on AI opportunities, with a focus on personal and enterprise AI innovations [5][11] - Continuous investment in R&D, which increased by 10% year-on-year to $524 million, is a priority to drive innovation and support the hybrid AI strategy [21][60] - The company aims to maintain its competitive edge through a unique ODM Plus model, combining in-house manufacturing with ODM to enhance flexibility and resilience [50][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating future uncertainties and emphasized the importance of maintaining market share and profitability despite external challenges [5][6] - The company anticipates continued growth in the PC and AI infrastructure markets, with a positive outlook for the remainder of the fiscal year [36][46] - Management highlighted the importance of adapting to market shifts and investing in AI infrastructure to capture growth opportunities [9][10] Other Important Information - The company reported strong cash flow from operations of $1.2 billion, the highest in the past eleven quarters, and a free cash flow of $751 million [20] - The company is focused on building a comprehensive AI ecosystem, including partnerships with major tech firms to enhance its AI offerings [72] Q&A Session Summary Question: Trends for PC in Q3 and Q4 2025 - The company expects continued strong performance in the PC market, with good order visibility and a positive outlook for shipments [36] Question: Update on Middle East business progress - The company is ahead of schedule in building a manufacturing facility in the Middle East and expects to capture additional market share through local partnerships [39] Question: Drivers behind strong growth in SSG - The shift from CapEx to OpEx models is driving strong growth in Device as a Service and Infrastructure as a Service across all geographies [44] Question: Impact of tariff uncertainties on supply chain - The company has not seen significant impacts from tariff uncertainties due to its competitive business model and diversified manufacturing footprint [46][48] Question: Explanation of margin decline despite operating profits - The decline in gross margin is attributed to the growth of the ISG business, particularly in AI servers, which have lower margins compared to other segments [55] Question: R&D investment growth outlook - R&D remains a strategic priority, and the company plans to continue investing in innovation to drive growth across all business segments [60] Question: Market share gains in PCs and smartphones - The company has achieved significant market share gains in both segments, driven by innovation and operational excellence [61][66] Question: Hiring investment in ISG AI capabilities - The company is investing in expanding its AI product portfolio and sales coverage to capture revenue opportunities in the AI infrastructure market [70][72] Question: Key growth drivers for AI server sales - Growth is driven by demand across all segments and geographies, with a notable hypergrowth in China related to AI [75] Question: Strategy to gain share in AIPC market - The company aims to leverage its comprehensive product offerings and innovation to gain market share and expand margins in the AIPC market [80]

Q1FY26 Earnings Announcement Aug 14, 2025 2025 Lenovo Internal. All rights reserved. 2025 Lenovo Internal. All rights reserved. Forward-Looking Statement This presentation contains "forward-looking statements", which are statements that refer to the expectations and plans for the future and include, without limitation, statements regarding Lenovo's future results of operations, financial condition or business prospects as well as other statements based on projections, estimates and assumptions. In some case ...

AI is the future and investors need to prepare accordingly. In this episode of Stocks in Translation, TECHnalysis Research president Bob O’Donnell joins Markets and Data Editor Jared Blikre and Yahoo Finance Senior Reporter Allie Canal to discuss the impact of AI on technology, the job market, and how it’s affecting the economy. The trio specifically focuses on hybrid AI, the AI model that splits workloads across public clouds, private infrastructure, and personal devices, and how this rapidly evolving tech ...

Financial Performance - Full Year 2024/25 - Lenovo Group's revenue reached $69.1 billion, a 21% year-over-year increase[11] - The Group's net income (non-HKFRS) was $1.441 billion, up 36% year-over-year, with a net income margin of 2.1%, up 0.2 percentage points year-over-year[11] - Non-PC revenue mix reached a record high of 47%, up 5 percentage points year-over-year[11] - R&D spending increased by 13% year-over-year, reaching $2.3 billion[15,43] Business Group Performance - Full Year 2024/25 - Intelligent Devices Group (IDG) revenue was $50.5 billion, up 13% year-over-year, with an operating margin of 7.2%[16] - Infrastructure Solutions Group (ISG) revenue reached a record high of $14.5 billion, up 63% year-over-year, with CSP revenue up 92% year-over-year, achieving $10 billion[23] - Solutions & Services Group (SSG) revenue was $8.5 billion, up 13% year-over-year, with an operating margin of 21.1%, and solutions & "as-a-Service" business revenue mix 58%, up 4 percentage points year-over-year[29] Financial Performance - Q4 2024/25 - Group revenue grew 23% year-over-year, with net income (non-HKFRS) up 25% year-over-year[34] - Group revenue reached $17 billion[66] Intelligent Devices Group (IDG) - Q4 2024/25 - IDG's global PC market share rose by 1 percentage point year-over-year to 24%[51] - Lenovo's 5-feature AI PCs captured 16% of PRC notebook shipments in Q4[51] Infrastructure Solutions Group (ISG) - Q4 2024/25 - ISG revenue increased by 63% year-over-year[34] Solutions & Services Group (SSG) - Q4 2024/25 - SSG revenue increased by 18% year-over-year, with an operating margin of 22.7%[34]

Financial Data and Key Metrics Changes - Group revenue increased by over 21% year on year, reaching US$69 billion, the second highest in the company's history [4][15] - Net income surged by 36% year on year on a non-Hong Kong FIS basis, amounting to US$1.4 billion [15][30] - Operating cash flow remained robust at US$1.1 billion, with a cash balance of US$4.7 billion [20] Business Line Data and Key Metrics Changes - Intelligent Device Group (IDG) achieved a 13% year on year revenue growth, with an operating margin of 7.2% [21] - Infrastructure Solutions Group (ISG) reported record revenue of US$15 billion, representing a hyper growth of 63% year on year [25] - Solutions and Services Group (SSG) generated record revenues of US$8.5 billion, up 13% year on year, with an operating profit of US$1.8 billion, a 15% increase [28] Market Data and Key Metrics Changes - All geographies experienced double-digit growth year on year, reflecting Lenovo's global presence [5][18] - Smartphone revenue grew by 27% year on year, reaching a historical high since the acquisition of Motorola [8][23] - Non-PC revenue mix reached 49% of total sales, up five percentage points year on year [31] Company Strategy and Development Direction - The company is focusing on hybrid AI, with significant investments in R&D amounting to US$2.3 billion, an increase of over US$260 million year on year [18] - Lenovo aims to enhance its market competitiveness through operational excellence and continuous innovation [5][34] - The company plans to further accelerate smartphone growth and develop AI-driven applications across its product lines [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating uncertainties from dynamic tariff policies and geopolitical challenges [5][56] - The company anticipates continued growth in AI-driven demand and is well-positioned for future leadership in both personal and enterprise AI [16][34] - Management highlighted the importance of agility in adjusting manufacturing capacity to mitigate tariff impacts [52][56] Other Important Information - Lenovo's commitment to corporate governance and sustainability has been recognized, achieving a AA rating in the Hang Seng Corporate Sustainability Index [32] - The company announced a strategic partnership with PIF Allat, broadening its shareholder base and expanding its global presence [19] Q&A Session Summary Question: How mature are AI PCs and AI smartphones this year? - The company is pleased with the progress in AI PCs and smartphones, expecting significant innovation in 2025 and beyond [38][41] Question: What are the commercial opportunities for Lenovo's AI agents? - The company believes that AI PCs will drive demand and create monetization opportunities as they scale [44][45] Question: Can you explain the financial charge from warrants? - The fair value adjustment to the warrants impacted operating expenses by approximately US$118 million for the quarter [46][48] Question: How is ISG's enterprise business performing? - The enterprise infrastructure is meeting internal goals, with record revenue and strong growth in the CSP segment [49][51] Question: What is the manufacturing footprint to mitigate U.S. tariffs? - The company has built a flexible global manufacturing footprint, allowing quick adjustments to production locations [52][56] Question: What is the outlook for AI server contributions? - The company expects continued growth in AI infrastructure and solutions, leveraging its Neptune liquid cooling technology [66] Question: How sustainable is ISG's profitability? - The company is confident in sustaining profitability through its ODM Plus model and improving cost structures [73][74] Question: What strategies are in place for Motorola's smartphone business? - The company plans to continue expanding its premium smartphone offerings and grow market share in various regions [78][80] Question: How much pull-in demand was seen due to tariffs? - The company did not observe significant pull-in demand but prepared inventory to mitigate risks [81][82]