LENOVO GROUP (00992) recently announced its Q2 FY2025/26 results (ended September 30, 2025), reporting a 15% year-on-year revenue growth to RMB 146.4 billion—a record high for the quarter and significantly exceeding market expectations. Adjusted net profit surged 25% YoY to RMB 3.66 billion, with profit growth outpacing revenue growth, demonstrating the group's operational resilience and strategic stability amid complex conditions.
Everbright Securities released an analysis report highlighting key business segments: 1) **PC Business**: FY26Q2 PC revenue rose 17% YoY. According to IDC, LENOVO's PC shipment share reached 25.5% in Q3 2025 (FY26Q2), up 1.7 percentage points YoY. The company leads the global Windows AI PC market with a 31.1% shipment share, while AI PCs accounted for 33% of its total PC shipments. 2) **Smartphones**: FY26Q2 saw record-high new device activations, driven by strong sales of premium models like Razr and Edge. Asia-Pacific and India markets performed particularly well in high-end sales. The company leveraged its supply chain advantages to mitigate memory price pressures, experiencing less impact than peers.
**ISG Business**: AI server demand remained robust, with the Neptune liquid cooling solution achieving triple-digit YoY growth. FY26Q2 ISG revenue reached $4.087 billion, up 24% YoY: - Cloud infrastructure revenue grew 21% YoY to a record high. - Enterprise infrastructure revenue rose 30% YoY. Operating losses narrowed to $32 million from $36 million YoY. Key drivers included: 1) High double-digit growth in AI server revenue, fueled by rising AI adoption and product upgrades. 2) Neptune liquid cooling revenue surged 154% YoY. 3) Profitability in China's ISG business continued improving.
**SSG Business**: FY26Q2 revenue hit a record $2.556 billion, up 18% YoY—marking 18 consecutive quarters of double-digit growth. Operating margin held steady at 22%. - Support services revenue grew 16% YoY, with deferred revenue reaching $3.6 billion (+17% YoY). - Managed services and project/solution revenue rose 29% and 13% YoY, respectively, collectively accounting for 59.9% of SSG revenue (+1ppt YoY). These segments, optimizing costs through differentiated vertical solutions, remain core profit growth engines and are expected to sustain high revenue momentum.
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