Core Insights - Lenovo Group reported a 15% year-on-year revenue growth to 146.4 billion RMB for Q2 of the fiscal year 2025/26, achieving a historical high for the quarter and significantly exceeding market expectations [1] - Adjusted net profit increased by 25% year-on-year to 3.66 billion RMB, indicating strong operational resilience and strategic certainty in a complex environment [1] Business Segment Analysis - **IDG (Intelligent Devices Group)**: Revenue reached 15.11 billion USD, up 11.8% year-on-year. Lenovo's PC shipment growth of 17.3% outperformed the industry average of 9.4%, suggesting the anticipated Windows 11 upgrade cycle is materializing. AI PC shipments accounted for 33%, with an estimated average price of 800-850 USD, significantly higher than regular PCs, contributing to both volume and price increases [2] - **ISG (Infrastructure Solutions Group)**: Revenue was 4.087 billion USD, a 23.7% year-on-year increase. AI server revenue saw strong double-digit growth, with robust demand. The operating profit margin (OPM) was -2.7%, but losses narrowed sequentially, supported by a healthy backlog of CSP orders and potential for sustainable profitability [2] - **SSG (Solutions and Services Group)**: Revenue reached 2.556 billion USD, growing 18.1% year-on-year. Deferred revenue increased to 3.6 billion USD, up 17% year-on-year, enhancing business predictability. OPM improved to 22.34%, up 1.91 percentage points [2] Competitive Positioning - Lenovo possesses extensive experience in managing component price fluctuations and is a major buyer in the market, which provides it with superior bargaining power and procurement capabilities. The company can mitigate cost impacts through new product launches, adjustments in product and customer mix, and limited downstream cost transmission [2]