The target was stated plainly, with the confidence of a company that just finished its best year ever. Lenovo’s chairman and chief executive, Yuanqing Yang, said Friday that the company aims to become a $100 billion-scale business within two years, on the back of what he called the strongest full-year results in its history. The numbers behind the claim: annual revenue of $83.1 billion, up 20.3%, and adjusted net profit of $2.0 billion, up 42.1% — profit growing at roughly twice the rate of revenue.
Hong Kong investors responded immediately. Lenovo’s shares surged more than 13% on Friday to their highest level since March 2000, a 26-year high, after Citi said the company’s net profit came in well above expectations. The stock’s reaction reflected how much the fiscal 2025/26 report, covering the year ended March 31, 2026, exceeded the market’s model: every business group grew in double digits, and the infrastructure unit returned to profitability for the first time in years.
The AI engine
The most important line in the report is the one labeled AI. Lenovo said revenue from AI-related businesses grew 84% in the fourth quarter and accounted for 38% of group revenue; for the full year, AI-related revenue more than doubled and reached 33% of the total. The growth spans three fronts: AI devices — PCs, smartphones and tablets with built-in neural processors; AI infrastructure, led by servers; and AI-enabled services.
The infrastructure story is the turnaround. Lenovo’s Infrastructure Solutions Group posted annual revenue of about $19.2 billion, up 32%, and returned to full-year profitability, with record quarterly revenue of $5.6 billion in the fourth quarter, up 37%. The group’s AI server backlog reached $21 billion by year-end, a signal that demand is booked ahead rather than spot. The company says its annual server-rack manufacturing capacity has surpassed 70,000 units, including more than 11,000 direct-liquid-cooled racks built specifically for AI workloads — the technology hyperscalers increasingly demand to cool dense GPU clusters.
The PC base
The rest of the machine still matters. The Intelligent Devices Group, which makes the PCs, smartphones and tablets that anchor Lenovo’s brand, grew 17% to about 418.5 billion yuan in annual revenue while the company held a leading 24.2% share of the global PC market. The Solutions and Services Group grew 19% to about 71 billion yuan, with more than 60% of its revenue now coming from recurring managed services and projects — a shift toward the annuity-style revenue that investors reward.
Geographically, Asia Pacific excluding China was the fastest-growing region, up 23% to $16 billion, powered by hybrid-AI solutions, infrastructure sales and momentum for the Motorola smartphone brand. The company also closed its acquisition of Infinidat, an enterprise storage company, in early April, adding a higher-margin line to the infrastructure portfolio.
The path to $100 billion
The $100 billion target is ambitious arithmetic. Lenovo would need to add roughly $17 billion in annual revenue — a 20% increase — on top of a year that already grew revenue by a fifth. The company’s argument is that the AI buildout gives it three engines running at once: refreshed PCs as AI features drive replacements, AI servers with a $21 billion backlog, and services growing in double digits with better margins. It is the same story every hardware maker with AI exposure is telling, with one difference: Lenovo’s numbers this year actually supported it.
The fourth quarter deserves its own line. Lenovo generated $21.6 billion in revenue in the three months through March, up 27% — its fastest quarterly growth in five years — with adjusted net profit of $559 million, up 101%. Yang called the quarter the strongest finish in company history: “We returned our Infrastructure Solutions Group to a sustainable and profitable growth trajectory and achieved hyper-growth by capturing the opportunity of the booming AI infrastructure market.” The stock market’s 13% surge on Friday was the verdict on that execution, and the two-year, $100 billion goal now has a quarter’s worth of momentum behind it.
The quarterly mechanics explain the confidence. Fourth-quarter revenue growth of 27% was the fastest in five years, and the adjusted net profit gain of 101% came even as the company absorbed rising component costs and the Infinidat integration. The mix shift is the durable part: services now generate a growing share of revenue at higher margins, and AI servers carry a backlog that makes near-term demand less dependent on spot orders. If the company can hold the services and infrastructure engines at their current growth rates, the $100 billion target stops looking aspirational and starts looking like an execution question.
Lenovo closed its fiscal year with record revenue of $83.1 billion, profit growth of 42%, an infrastructure unit back in the black and AI-related revenue more than doubling. The stock’s 26-year high on Friday was the market’s acknowledgment. The stated goal — $100 billion in revenue within two years — is a stretch, but it is a stretch built on a quarter in which every division grew in double digits and the AI backlog reached $21 billion. The company has earned the right to set the target; now it has to deliver it.
