Lenovo's Q3 Results Hit Record High; Yang Yuanqing Warns Memory Prices May Double

Lenovo Group today announced its third-quarter results for fiscal year 2025/26, ending December 31, 2025, with both revenue and profit hitting record highs. Third-quarter revenue reached US$22.2 billion, a year-on-year increase of 18%; total revenue for the first nine months was US$61.486 billion, a year-on-year increase of 18%.

Source: Public information

Artificial intelligence-related revenue became the core growth engine, surging 72% year-on-year and accounting for 32% of the group's total revenue. All three business groups achieved double-digit revenue growth: the Smart Devices business group achieved a market share of 25.3%, becoming the only supplier in the global PC market in the past 30 years to exceed 25% market share for two consecutive quarters; the Infrastructure Solutions business group's quarterly revenue exceeded US$5.2 billion for the first time, a year-on-year increase of 31%; and the Solutions Services business group achieved double-digit growth for 19 consecutive quarters, with operating profit margin rising to a record high of 22.5%.

Looking ahead, Lenovo Chairman and CEO Yang Yuanqing stated that the group will continue to deepen its hybrid AI strategy, building a full-scenario AI ecosystem centered on the "one-in-one, multi-terminal" intelligent agent Qira. The Infrastructure Solutions business group expects to achieve break-even in the fourth quarter of this fiscal year and launch a three-year cost optimization plan, aiming for net savings of over $200 million annually. R&D investment will remain at 3% of revenue. At CES 2026, Lenovo set a new record for innovative product awards with 212 accolades.

While the performance is positive, Yang Yuanqing issued a warning for the storage industry: the upward cycle in storage prices is far from over. He revealed that storage costs rose by 40% to 50% quarter-on-quarter last quarter, and the increase may further expand to double in the first quarter of 2026, with component prices likely to continue rising throughout the year. The continuous price increases for DRAM, SSDs, and CPUs are putting significant cost pressure on hardware manufacturers. Yang Yuanqing stated that Lenovo will leverage its global supply chain capabilities and long-term strategic supplier partnerships to strive for better supply and prices during this price surge, turning challenges into opportunities.