Lenovo Group (992) Q2 2026 earnings summary

Executive summary

• Revenue for the first half reached a record US$39.3 billion, up 18% year-over-year, with all business groups and geographies achieving double-digit growth.

• Net income attributable to equity holders rose 40% year-over-year to US$846 million, with adjusted net income up 24% to US$901 million.

• AI-related revenues surged to 29% of total, up 15 percentage points year-over-year, driven by AI devices, infrastructure, and services.

• R&D spending increased 8% year-over-year, supporting AI strategy and innovation.

• Net income margin expanded by 35 basis points to 2.2% for the first half, reflecting improved operational leverage and cost efficiencies.

Financial highlights

• First-half revenue: US$39.3 billion (+18% YoY); profit attributable to equity holders: US$846 million (+40% YoY); adjusted profit: US$901 million (+24% YoY).

• Second-quarter revenue: US$20.5 billion (+15% YoY); adjusted net income margin: 2.5%.

• Gross profit margin for the first half: 15.1% (down 1.0 pt YoY); operating profit: US$1.43 billion (+25% YoY).

• Free cash flow: US$1.9 billion; operating cash flow: US$2.8 billion.

• Basic EPS for the first half: US6.89 cents (+US1.98 cents YoY); diluted EPS: US6.18 cents (+US1.47 cents YoY).

Outlook and guidance

• Strategic focus on Hybrid AI for All, integrating on-device, edge, and enterprise AI across platforms.

• Continued investment in AI innovation, R&D, and expansion of AI-powered devices and services.

• Management expects sustained double-digit growth and margin expansion, leveraging operational agility and market leadership.