Chinese Lenovo Group Ltd, the world's largest personal computer maker, increased its first-quarter revenue by 43% to a record high, driven by strong demand for artificial intelligence solutions.
The quarterly revenue growth was the fastest in five years, according to a Lenovo press release. However, the company posted a net loss due to the revaluation of financial instruments.
Lenovo's revenue for April-June was $26.94 billion, compared with $18.83 billion in the same period a year earlier. The consensus forecast of analysts polled by LSEG was $22.3 billion.
Total AI-related revenue (devices and services) surged 1.6 times to $9.3 billion, accounting for 35% of Lenovo's total revenue in the first fiscal quarter.
Revenue from the devices business, which includes computers and smartphones and is the company's main revenue source, rose 27% to $17.1 billion. Revenue in the infrastructure solutions segment nearly doubled to $8.5 billion. Both divisions posted record first-quarter results.
In the services segment, revenue increased 28% to a record $2.9 billion.
Lenovo recorded a net loss of $609 million in April-June, compared with a net profit of $505 million a year earlier. The figure includes an unrealized loss of $1.7 billion from the revaluation of warrants issued by the company in 2025. Analysts on average had expected the company to post a net profit of $589 million in the first fiscal quarter.
Adjusted profit, which excludes the change in the value of financial instruments, surged 2.8 times to $1.075 billion.
The company's research and development (R&D) spending rose 30% in the past quarter.
Lenovo's shares soared 20% in Hong Kong trading on Thursday. Since the beginning of the year, their value has increased 3.8 times.