Lenovo Shares Double in May After Record AI-Driven Quarter

Lenovo’s stock jumped 109% in May after the company reported fiscal Q4 revenue of $21.6 billion and net income of $521 million, propelled by strong AI-related sales and record demand for AI servers. The monthly gain was the largest for the company since 1999.

Quarterly revenue rose 27% year over year and net profit increased 479% from $90 million a year earlier. AI-related revenue grew 84% year over year and represented 38% of Lenovo’s total quarterly sales. The Infrastructure Solutions Group, which builds AI-optimized servers, storage and data-center systems, posted a record $5.6 billion in revenue for the quarter, up 37% from a year ago.

Investors pushed the stock higher after results showed faster-than-expected recovery in profitability. Shares climbed as much as 31% on the final trading day of the reporting week and more than doubled over the month. Year to date, Lenovo is the top performer on the Hang Seng Index with about a 159% gain.

For the full fiscal year Lenovo reported $83.1 billion in revenue, a 20% increase and the first time annual sales exceeded $80 billion. Management described FY2026 as the company’s best year in its 40-year history and set a target of $100 billion in annual revenue within two years.

Lenovo’s Intelligent Devices Group contributed $14.6 billion in Q4 revenue, up 24% year over year, and the company said it held a 24.4% share of the global PC market, its largest lead over competitors in 15 years. Demand for AI-capable personal computers was cited as a supporting factor for device sales.

ISG has crossed $19.2 billion in revenue for the full fiscal year and enters FY2027 with more than $21 billion of committed pipeline demand. How quickly that pipeline converts to revenue depends in part on securing GPU allocations from Nvidia and other component availability, which remain the principal constraints for the server industry.

Analysts raised price targets after the results, citing faster-than-expected growth in server sales for AI workloads. An analyst observed that demand for AI servers is spreading beyond hyperscalers to enterprise customers, benefiting original equipment manufacturers that assemble compute-ready systems. Companies’ ability to access key chips will affect how much of the current pipeline is delivered in the near term.