EarningsQ1 2027 Earnings Report

Lenovo Group (992N) Q1 2027 Earnings Report

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Previous Report: Q4 2026

MX:992N Q1 2027 EPS Results

Actual EPS-$0.90

Consensus EPS$0.67

Beat/MissMissed by -$1.57

One Year Ago EPS$0.65

MX:992N Q1 2027 Revenue Results

Actual Revenue$484.30B

Expected Revenue$404.67B

Beat/MissBeat by +$79.63B

YoY Revenue Growth+43.64%

Earnings Announcement Details

QuarterQ1 2027

Date08/13/2026

TimeBefore Open

Conference CallThursday, August 13, 2026

MX:992N Upcoming Earnings

Lenovo Group's next earnings date is estimated for October 29, 2026, based on past reporting schedules.

Q1 2027 Earnings Call Audio

MX:992N Q1 2027 Earnings Call

0:00 / 0:00

Q1 2027 Earnings Slide Deck

Q1 2027 Earnings Call Summary

Q1 2027

Earnings Call Date:Aug 13, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call is strongly positive on operational and financial performance: record group revenue (USD 26.9B, +43% YoY), record adjusted profits (adjusted net income USD 1.1B, +176% YoY), rapid AI‑related revenue growth (USD 9B, +60% YoY) and record quarters across all business groups (IDG, ISG, SSG). ISG's near‑doubling of revenue and margin expansion to 9.1%, the USD 54B AI server pipeline and the SSG services momentum are notable drivers of durable growth. The primary risks noted were a reported GAAP net loss due to non‑cash accounting items, persistent memory and component cost pressure, expected unit declines in PC and smartphone markets, and the fact that the AI pipeline is not fully committed. Overall, positive execution and strong AI momentum substantially outweigh these challenges.

Company Guidance

Guidance reiterated management’s targets to reach $100 billion in annual revenue within two years (now possibly sooner given Q1 momentum) and a long‑term aspiration of ~$130 billion over 3–5 years, with a net income margin goal of greater than 5%; near‑term expectations include continued strong AI demand and memory tightness through at least the end of next year. Q1 results underpinning that guidance were: group revenue $26.9B (+43% YoY), adjusted operating income $1.5B (+141%), adjusted net income $1.1B (+176%), adjusted operating/net margins 5.7%/4.0%, and AI‑related revenue >$9B (+60%) = 35% of group. Business‑level metrics cited as drivers include IDG revenue $17.1B (+27%) with operating profit $1.2B and 7.1% margin and 24.2% PC share (AI PC share 25.1%); ISG revenue $8.5B (+98%) with operating profit $777M and 9.1% margin and an AI server pipeline of $54B (q/q +157%); SSG revenue $2.9B (+28%) with operating profit $697M and 24.2% margin, TruScale +35%, Projects & Solutions AI library +50%, and SSG TAM expected >$850B by FY29–30 (AI adding >$200B this fiscal year). Management also guided that H2 unit demand may soften (PC units down ~15% and smartphone shipments down ~20%), but Lenovo expects to offset unit declines with higher ASPs, premium mix, procurement scale and supply‑chain advantages to sustain margin expansion.

Record Group Revenue

Reported record quarterly revenue of USD 26.9 billion, up 43% year‑on‑year, the highest growth in the past five years.

Record Adjusted Profitability

Adjusted net income exceeded USD 1 billion for the first time at USD 1.1 billion, up 176% year‑on‑year; adjusted operating income rose 141% year‑on‑year to USD 1.5 billion. Adjusted operating and net margins expanded to 5.7% and 4.0%, respectively.

AI-Related Revenue Growth

AI-related revenue accelerated to over USD 9 billion, up 60% year‑on‑year and representing 35% of group revenue.

Strong R&D Investment

R&D expenses increased 30% year‑on‑year, reflecting continued investment in AI and product innovation.

IDG: Record Quarter and Market Leadership

Intelligent Devices Group (IDG) delivered record Q1 revenue of USD 17.1 billion, up 27% year‑on‑year; operating profit grew 27% to USD 1.2 billion with operating margin of 7.1%. Global PC market share reached 24.2% (AI PC share 25.1%), widening the gap over the #2 player by more than 5 points for the 10th consecutive quarter. PC revenue up nearly 30% YoY; tablet +18% YoY; smartphone revenue +15% YoY.

ISG: Rapid Expansion and Profitability

Infrastructure Solutions Group (ISG) nearly doubled revenue to a record USD 8.5 billion, up 98% year‑on‑year; operating profit reached USD 777 million and operating margin expanded to a record 9.1%. AI server pipeline expanded to USD 54 billion, up 157% quarter‑on‑quarter.

SSG: High-Margin Services Growth

Solutions & Services Group (SSG) revenue grew 28% YoY to USD 2.9 billion; operating profit rose 39% to USD 697 million and operating margin expanded to a record 24.2%. Managed services and Projects & Solutions accounted for 62.4% of SSG revenue. AI services revenue grew triple digit YoY; TruScale grew 35% and Projects & Solutions AI library delivered ~50% growth.

Broader Execution Wins and Partnerships

Delivered large-scale AI infrastructure and services wins (e.g., AI factory with 7,000+ GPUs for a leading cloud provider) and strengthened partnerships with NVIDIA, AMD and Intel; moved to #2 in global x86 server market and scaled liquid cooling (Neptune) and Vera Rubin rack solutions.

Global Brand and Marketing Impact (FIFA World Cup)

Official technology partner of FIFA World Cup 2026: 99.99% solution uptime, deployed and managed 25,000+ devices across 600+ sites, hosted 16,000 guests; generated billions of social impressions and significant media coverage, boosting brand as an AI leader.

Clear Strategic Targets

Management reiterated a goal to reach USD 100 billion in revenue (originally a 2‑year target) and targets long‑term net income margin >5%, stating Q1 momentum positions the company ahead of schedule.

MX:992N Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 29, 2026	2027 (Q2)	1.21 / -	0.45	―
Aug 13, 2026	2027 (Q1)	0.67 / -0.90	0.648	-238.89% (-1.55)
May 21, 2026	2026 (Q4)	0.47 / 0.77	0.126	514.29% (+0.65)
Feb 12, 2026	2026 (Q3)	0.65 / 0.70	0.972	-27.78% (-0.27)
Nov 19, 2025	2026 (Q2)	0.56 / 0.45	0.504	-10.71% (-0.05)
Aug 13, 2025	2026 (Q1)	0.47 / 0.65	0.342	89.47% (+0.31)
May 22, 2025	2025 (Q4)	0.31 / 0.13	0.36	-65.00% (-0.23)
Feb 20, 2025	2025 (Q3)	0.52 / 0.97	0.468	107.69% (+0.50)
Nov 14, 2024	2025 (Q2)	0.50 / 0.50	0.36	40.00% (+0.14)
Aug 15, 2024	2025 (Q1)	0.34 / 0.34	0.27	26.67% (+0.07)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed