Stock price surged 17%! Lenovo released its financial report: quarterly profit soared 176%, with AI server reserve orders jumping to 360 billion yuan.

Lenovo Group officially announced its first-quarter results for fiscal year 2026/27, covering the period from April 1 to June 30, 2026. The group achieved total revenue of $26.943 billion, approximately RMB 183.4 billion, a year-on-year increase of 43%.

The report also showed that Lenovo's adjusted net profit for the period reached $1.075 billion, approximately RMB 7.3 billion, a substantial year-on-year increase of 176%. The adjusted net profit margin stood at 4%, marking a significant leap in overall profitability compared to the previous cycle.

According to details disclosed by Lenovo, in the first quarter of fiscal year 2026/27, the ISG Infrastructure Solutions Group generated revenue of RMB 57.9 billion, a year-on-year surge of 98%, nearly doubling its business scale.

This core business focused on computing infrastructure posted an operating profit of approximately RMB 5.3 billion for the period, also up 98% year-on-year. The operating profit margin reached 9.1%, an improvement of 11.1 percentage points compared to the same period last year and 5.5 percentage points higher than the previous fiscal quarter, delivering exceptionally strong profitability.

Additionally, the industry's most-watched AI server reserved order backlog has surged from RMB 140 billion at the end of the previous fiscal quarter to RMB 360 billion, nearly doubling. This robust order reserve also solidifies the foundation for sustained performance growth in Lenovo's upcoming fiscal quarters.

As of the time of writing, following the announcement of revenue exceeding expectations, Lenovo's stock price expanded its gains to 17%.