Lenovo Group shares jumped on Friday after the world’s largest PC maker reported a stronger-than-expected quarterly revenue increase, helped by resilient computer demand and growth in AI infrastructure.
The company’s Hong Kong-listed shares surged 15%, making Lenovo the biggest percentage gainer on the Hang Seng Index, Reuters reported. The move followed a fiscal fourth-quarter report that showed revenue rising 27% from a year earlier to $21.6 billion, well above analyst expectations of $18.7 billion.
The results gave Lenovo its strongest quarterly growth rate in five years and added momentum to a stock that has been pulled into the wider investor focus on AI hardware, servers and enterprise computing.
Lenovo’s core PC business remained the first driver of the quarter. Reuters said strong consumer demand for computers ahead of possible price increases helped the company expand market share. The company increased PC shipments by 9% to 16.5 million units in the first quarter of 2026, reaching a 26% global share while the broader market rose 3.2%, Reuters reported.
The timing worked in Lenovo’s favor. Customers continued buying PCs while manufacturers and retailers dealt with higher component costs and concerns over possible price increases. Lenovo benefited from that demand while keeping its place at the top of the global PC market.
The company’s largest division, covering PCs, tablets and smartphones, posted 24% revenue growth, Reuters reported. That was the segment’s fastest quarterly growth in five years.
The earnings beat did not come only from consumer devices. Lenovo’s infrastructure solutions group, which includes AI servers, reported 37% revenue growth, the strongest among the company’s segments, according to Reuters. The division was supported by a $21 billion AI server order pipeline.
That part of the report helped frame Lenovo as more than a PC cycle trade. AI spending is pushing demand for servers, memory, data center equipment and enterprise infrastructure. Lenovo is trying to capture that spending while continuing to defend its position in personal computing.
Chairman and Chief Executive Yuanqing Yang said Lenovo had concluded its best year and returned its Infrastructure Solutions Group to “a sustainable and profitable growth trajectory,” according to the company’s statement. He said the group had captured the opportunity from the AI infrastructure market and was positioned around “AI inferencing and democratization.”
Yang also said Lenovo aims to become a $100 billion company within the next two years. The target would require the company to build on both its PC position and its AI infrastructure expansion. The Wall Street Journal reported that Lenovo’s full-year revenue reached $83.1 billion and that AI-related revenue accounted for 38% of the total.
Lenovo’s quarterly profit also topped expectations. Reuters reported that net profit jumped 479% to $521 million, nearly double analyst expectations. The company also posted strong growth despite memory-chip shortages and rising costs, helped by a diversified supplier network.
Those cost pressures remain an issue. AI demand has pushed up the need for high-end chips and memory, while PC makers still face component-price volatility. The same AI boom helping Lenovo sell servers can also make parts more expensive across its hardware lines.
Lenovo’s board declared a final dividend of 33.70 Hong Kong cents per share for the fiscal year ended March 31, 2026, according to the company’s results release.
The dividend added another element to the rally. The share move reflected not only stronger sales, but also confidence that Lenovo can turn AI-related demand into profitable growth while still returning cash to shareholders.
Investors have been watching whether established hardware and software companies can turn AI spending into real revenue rather than only promises. Lenovo’s report showed demand flowing through both devices and infrastructure. The company said AI-related sales grew sharply, while its infrastructure segment returned to stronger profitability.
The company’s “Hybrid AI” strategy covers both personal AI on devices and enterprise AI systems that help customers use their own data. That gives Lenovo exposure to two different parts of the market: AI-enabled PCs and smartphones on one side, and servers and enterprise infrastructure on the other.
The PC side is more familiar. Lenovo has been the world’s leading PC maker for years and remains heavily tied to the replacement cycle for laptops and desktops. The AI side carries more growth potential, but also more competition.
Dell, HP, Supermicro, server makers, cloud providers and chip companies are all trying to take a larger share of AI infrastructure spending. Lenovo’s advantage is its scale, supply chain and existing enterprise customer base. Its challenge is proving that AI server demand can stay strong enough to support the $100 billion revenue target.
The latest quarter gives the company room to make that case. Revenue beat expectations, profit rose sharply, shares rallied, and management pointed to AI infrastructure as a growth engine.
The report does not remove the risks. PC demand can slow. Component costs can rise. AI infrastructure spending can shift quickly between suppliers. Customers can delay hardware purchases if budgets tighten.
Friday’s reaction showed that investors were willing to reward the numbers. Lenovo delivered a quarter that combined old and new parts of the business: PCs still selling, servers growing faster, and AI demand beginning to show up in revenue.