Lenovo's Record-Breaking Quarter: AI PCs Fuel Growth

Lenovo kicked off its fiscal year with a bang, reporting record PC sales and dominating the AI PC market. Q1 2025/26 revenue hit $18.8 billion, a 22% year-over-year increase, with profits more than doubling. Its PC and smart devices division saw its fastest growth in 15 quarters, achieving a record 24.6% global market share. Over 30% of Lenovo's PC shipments were AI PCs, giving it a commanding 31% market share in the Windows AI PC segment. While the practical usage of AI PC features is debated, Lenovo's premium models and hybrid AI strategy are resonating with consumers. Motorola's foldable phone success also contributed significantly. Lenovo's Infrastructure Solutions Group also thrived, with revenue up 36% and AI infrastructure sales more than doubling. Despite the recovering PC market, Lenovo's strong performance puts it ahead of competitors, but the long-term success depends on sustained demand for AI PC features.