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The world’s biggest PC maker just had its best year ever, and the market finally noticed.
Lenovo shares closed at HK$18.19 on Tuesday, May 26, hitting an all-time high and capping a stunning run that has seen the stock climb roughly 90% year to date.
The catalyst was a blowout earnings report on Friday, May 22, that smashed expectations and triggered back-to-back double-digit rallies in Hong Kong trading.
The numbers behind the move are hard to ignore. For the fiscal year ended March 31, Lenovo posted record revenue of $83.1 billion, up about 20% year over year, marking the first time the company has crossed the $80 billion mark. Adjusted net income grew 42% to roughly $2 billion.
But the real headline was the fourth quarter, where revenue jumped 27% to a record $21.6 billion, the fastest pace of growth Lenovo has seen in 5 years, while net profit surged nearly sixfold to $521 million. That figure blew past the $291 million analysts had penciled in, according to a FactSet poll.
AI-related revenue more than doubled over the full year, climbing 105%, and in the 4th quarter it grew 84%, making up 38% of total group revenue. Lenovo counts AI-capable PCs and smartphones, GPU-equipped servers, and related services in that bucket, and every part of it is expanding fast.
The infrastructure business is arguably the bigger story than the headline numbers suggest. Lenovo’s Infrastructure Solutions Group, which builds the servers and data center gear powering the AI boom, posted record quarterly revenue of $5.6 billion, up 37%, alongside its highest-ever quarterly operating profit of around $202 million.
The company now sits on an AI server pipeline worth roughly $21 billion, a backlog that points to strong demand stretching well into 2027 and beyond. Lenovo has already shipped its first Nvidia GB300 NVL72 rack-scale systems, with Rubin-based platforms targeted for the second half of 2026.
The PC engine that built the company is still humming, too.
Lenovo held a 24.4% share of the global PC market in the quarter and stretched its lead over the second-place vendor to the widest margin in 15 years. Premium PCs made up half of all shipments. Even the smaller Solutions and Services Group crossed $10 billion in annual revenue for the first time.
Wall Street and Asia’s analysts responded quickly.
DBS analyst Jim Au raised his price target to HK$23.50 from HK$19.00, arguing that investors should increasingly treat Lenovo as an AI infrastructure and hybrid AI platform company rather than a plain PC maker.
As Au put it, the company has now demonstrated that its AI infrastructure growth can convert into profit. Morningstar’s Jing Jie Yu called Lenovo an emerging beneficiary of accelerating global AI infrastructure spending and expects its infrastructure segment to grow another 35% in fiscal 2027.
The ripple effect even lifted rivals, with Dell and HP shares rallying in the days after Lenovo’s print, as investors took the results as confirmation that the AI hardware cycle is real and still early.
It isn’t all clear skies.
The same AI buildout that is fueling demand is worsening a global memory chip shortage, driving up component costs across the industry and squeezing margins.
Lenovo’s gross margin has slipped year over year as a result. The bet from management and analysts is that the company’s supply chain relationships and premium product mix will enable it to pass those costs along better than competitors can.
Morningstar expects Lenovo’s average PC prices to rise 25% in fiscal 2027 and another 6% the following year, though that could eventually dent shipment volumes. After a near-doubling in the share price this year, a lot of optimism is now baked in, and sustaining triple-digit AI revenue growth becomes harder as the comparison base widens.
Still, the ambition is striking. Chairman and CEO Yuanqing Yang told Bloomberg he is fully confident Lenovo will hit $100 billion in annual revenue within two years, powered by what he calls a hybrid AI vision spanning devices, infrastructure, and services. For a company long dismissed as a slow, boring hardware play, that is a remarkable place to be standing. Whether the stock can keep climbing from here is an open question, but the transformation underneath it is no longer in doubt.
