Lenovo's Yang Yuanqing: Revenue to reach $100 billion in two years

Ask AI · How does Lenovo’s moat safeguard its billion-dollar goal amid supply chain pressures?

On April 1st, Lenovo Group Chairman and CEO Yang Yuanqing set a new goal at the new fiscal year rally: to achieve over $100 billion in revenue in two years, and to become an AI-native company.

Lenovo’s financial report shows that in the first three fiscal quarters of 2025/26, Lenovo Group’s revenue reached 440 billion yuan, an 18% year-over-year increase, with adjusted net profit exceeding 10 billion yuan, a 28% growth. For the full fiscal year performance, Yang Yuanqing expects it to reach 560 billion yuan. AI-related revenue has doubled year over year, accounting for one-third of the company’s total revenue, and has become an important growth engine for Lenovo.

Looking back over the past year, Yang Yuanqing mentioned that Lenovo faced dynamic tariff pressures in the first half of the year, and in the second half, it had to deal with challenges from component shortages. In February, he revealed to reporters that storage prices had increased by 40%-50% in the last quarter, and this quarter might see prices double. Not only storage, but even CPUs and central processing units are rising in price. Lenovo’s scale advantage, diversified supply system, and long-term good relationships with suppliers are becoming the “moat” in this cycle.

By business segment, Lenovo’s IDG (Intelligent Devices Group) achieved a 14% year-over-year revenue growth. ISG (Infrastructure Solutions Group), after underperforming in the first fiscal quarter, restructured through the execution of the re-planned Vector program and strategic restructuring, is seizing AI inference market opportunities with x86 servers, striving to return to profitable growth. SSG (Solution & Services Group) has achieved double-digit revenue growth for 19 consecutive quarters, with operating profit in the first three fiscal quarters increasing by nearly 30%, with operations and maintenance services, projects, and solution services becoming key businesses.

In venture capital, Lenovo Ventures’ annual investment returns exceeded $250 million, with a record number of IPOs from invested companies, including Zhipu, Yunji, Moore Threads, and Muxi.

At the same time, Yang Yuanqing pointed out the challenges Lenovo faces, including that gross profit margins have not yet met market expectations, the scale and profitability of the mobile business (MBG) need improvement, and the Infrastructure Solutions Group still needs to seize market opportunities to achieve sustainable profitable growth.

He also stated on-site that Lenovo aims to become an AI-native company, and the new fiscal year is Lenovo’s “AI Delivery Year.” Every product, solution, service, and process will be designed and operated with artificial intelligence at its core. The entire company must embrace the new era with an entrepreneurial mindset.

Yang Yuanqing also revealed that Lenovo will explore more AI-native devices, including AI wearables, new form-factor PCs and phones designed specifically for intelligent agents, and more AI-native devices such as the personal computing power hub Kubit.

(This article is from First Financial)