Lenovo Group Limited · HKEX:992

Lenovo — Q1 2027 Earnings Presentation

29 slides from Lenovo's earnings presentation, Aug 13, 2026

  1. Slide 1: 1QFY26/27 Earnings Announcement

    1QFY26/27 Earnings Announcement August 13, 2026 2026 Lenovo. All rights reserved.

  2. Slide 2: Forward-Looking Statement

    Forward-Looking Statement This presentation contains “forward-looking statements”, which are statements that refer to the expectations and plans for the future and include, without limitation, statements regarding Lenovo’s future results of operations, financial condition or business prospects as we

  3. Slide 3: Yuanqing Yang, Chairman & CEO

    Yuanqing Yang Chairman & CEO August 13, 2026 2026 Lenovo. All rights reserved.

  4. Slide 4: Best quarter in Lenovo's history

    Best quarter in Lenovo’s history Record revenue Record adjusted net income Record AI momentum Strategic foresight | Operational excellence | Relentless innovation 4

  5. Slide 5: Group results: record performance, historic breakthroughs

    AI related revenue Group Revenue $9.3 billion Record performance, $26.9 billion +60% YoY, 35% of group total historic breakthroughs Record high, +43% YoY Main businesses （IDG ISG SSG） Adjusted net income* All record FQ1 revenue, all strong double- digit YoY growth $1,075 million Record high, +176% Y

  6. Slide 6: 3 Historic Breakthroughs

    3 Historic Breakthroughs ISG becoming Elevating from Turning Supply constraints global AI/Infrastructure leader PC leader to AI leader into competitive advantages growth & profit engine 6

  7. Slide 7: IDG

    IDG New heights • Revenue $17.1 billion, +27% YoY despite headwinds • Operating margin 7.1% • PCSD: revenue +30% YoY • PC: industry-leading profitability; market share 24.2%, 5.3pts over #2 player • Tablet: revenue +83% YoY, record FQ1 • Smartphone: revenue +15% YoY, record FQ1 7 Source: Internal, I

  8. Slide 8: ISG

    ISG Investment paying off, • Revenue $8.5 billion, +98% YoY, record high sustained profitable growth • Operating profit $777 million, operating margin 9.1%, both record high • Dual CSP & ESMB strategy drove exceptional growth: • CSP: revenue +98% YoY • ESMB: revenue +98% YoY • Strong momentum in tra

  9. Slide 9: SSG

    SSG • Revenue $2.9 billion, +28% YoY AI solutions gaining momentum • Operating margin 24.2%，+2pts YoY • Non-hardware-tied solutions and services revenue mix 62%, record high • Empowered FIFA World Cup ’26 as strong case of AI democratization • Zero-fault execution of AI solutions (FIFA AI Pro, Refer

  10. Slide 10: Outlook

    Outlook Executing Hybrid AI strategy Accelerating Hybrid AI strategy execution, driving AI democratization fully prepared to seize opportunities of AI democratization • Personal AI – One Personal AI, Multiple devices • Qira & Tianxi orchestrating across devices & ecosystems • Enterprise AI – Unleash

  11. Slide 11: Smarter AI for all

    Smarter AI for all

  12. Slide 12: Winston Cheng, Chief Financial Officer

    Winston Cheng Chief Financial Officer August 13, 2026 2026 Lenovo. All rights reserved.

  13. Slide 13: Record Quarterly Revenue

    Record Quarterly Revenue Uniquely Positioned to Seize Substantial AI-Driven Opportunities Across the Entire Value Chain SSG Record quarterly revenue of US$26.9B Highest quarterly revenue (+43% YoY), marking the highest growth with OPM expansion to in the past 5 years ISG record 24.2% Highest quarter

  14. Slide 14: Adjusted Net Income Surpassing the US$1B Milestone

    Adjusted Net Income Surpassing the US$1B Milestone Accelerated Margin Expansion Driven by Strong Execution and Efficiency Gains Excluding non-operating non-cash items, and one- US$M 1QFY26/27 Net Income2: Non-HKFRS Adjustments time benefits and charges1: 1,690 30 1,075 -36 ✓ Adjusted operating incom

  15. Slide 15: IDG: Intelligent Devices Group

    IDG Intelligent Devices Group US$M Record 1Q revenue of US$17.1B, up 27% YoY; Revenue Operating Profit & OP Margin Maintained industry-leading OPM of 7.1%, reflecting operational excellence, OPM 7.1% 7.1% supply chain resilience, and continued innovation +27% +27% Leading global PC market share reac

  16. Slide 16: Personal AI: Scaling the Industry's Broadest Device Ecosystems

    Personal AI: Scaling the Industry’s Broadest Device Ecosystems Continuously Expanding the Installed Base Across Portfolios to Lead in the Hybrid AI Era Lenovo’s Total Device Growth Outpaces Market and Other Leading Ecosystems1 One Personal AI, Multiple Devices By Units, Millions 2Y CAGR 1,712 Total

  17. Slide 17: ISG: Infrastructure Solutions Group

    ISG Infrastructure Solutions Group US$M Record quarterly revenue of US$8.5B, +98% YoY Revenue Operating Profit/(Loss) & OP Margin All-time-high operating profit of US$777M and operating margin of OPM -2.0% 9.1% 9.1% +98% +862M 8,510 Broad-based strength across traditional compute, AI servers and sto

  18. Slide 18: Exceptional Growth and Accelerated Profitability with Dual Engines

    Exceptional Growth and Accelerated Profitability with Dual Engines Leading the AI Infrastructure Industry with Our Unique ODM+/OEM Model and Global-Local Approach Accelerating Revenue Growth Driven by Dual Engines US$M 8,510 >2.5x Triple-digit AI server revenue YoY revenue YoY growth in Internationa

  19. Slide 19: ISG Customer Win Highlights in 1QFY26/27

    ISG Customer Win Highlights in 1QFY26/27 CSP Enterprise & SMB Liquid Cooling Leading AI Cloud Provider Enterprise AI Innovator AI Infrastructure Provider Delivered an AI Factory deployment with more Enabled faster AI innovation with an AI Factory Delivered a pioneering AI Factory featuring a 1.6MW t

  20. Slide 20: SSG: Solutions and Services Group

    SSG Solutions and Services Group US$M Revenue increased 28% YoY to US$2.9B with record OPM of 24.2%; Revenue Operating Profit & OP Margin Continued market share gains, growing nearly 2x the market growth rate OPM 22.2% 24.2% Record 62.4% of revenue from Managed Services and Projects & +28% +39% Solu

  21. Slide 21: Capturing Expanding AI-driven TAM through Enterprise Solutions

    Capturing Expanding AI-driven TAM through Faster, Scalable and Efficient Enterprise Solutions Rapidly Expanding Validated Enterprise TAM Solutions ✓ AI is driving the next phase of SSG's market opportunity1 Triple-digit ~2x AI services revenue TruScale IaaS • Portfolio expansion across AI services a

  22. Slide 22: Official FIFA World Cup 2026 Technology Partner

    Official FIFA World Cup 2026 Technology Partner AI Proven on the World’s Biggest Stage 99.99% 25K+ 600+ 16K 6B+ Solution uptime across Lenovo and Motorola FIFA sites supported with Guests hosted throughout Global fans reached tournament operations devices deployed and 350+ engineers onsite the tourn

  23. Slide 23: 2026 Lenovo. All rights reserved.

    2026 Lenovo. All rights reserved. 23

  24. Slide 24: Supplemental Financial Information

    Supplemental Financial Information 1QFY26/27 | Lenovo Group Limited 1. Financial Summary 2. Condensed Consolidated Income Statement 3. Condensed Consolidated Balance Sheet 4. Condensed Consolidated Cash Flow Statement 5. Non-HKFRS Adjustments 2026 Lenovo. All rights reserved. 24

  25. Slide 25: 1. Financial Summary

    1. Financial Summary US$ Million 1Q FY25/26 1Q FY26/27 YoY% 1Q FY25/26 1Q FY26/27 Revenue 18,830 26,943 43% Gross margin 14.7% 16.5% Gross profit 2,774 4,452 60% Operating margin 4.2% 0.1% Operating expenses (1,989) (4,433) 123% Expense ratio 10.6% 16.5% Operating profit 785 19 -98% PBT margin 3.3%

  26. Slide 26: 2. Condensed Consolidated Income Statement

    2. Condensed Consolidated Income Statement US$ Million 1Q FY25/26 1Q FY26/27 Revenue 18,830 26,943 Cost of sales (16,056) (22,491) Gross profit 2,774 4,452 Selling and distribution expenses (955) (1,267) Administrative expenses (677) (636) Research and development expenses (524) (682) Other operatin

  27. Slide 27: 3. Condensed Consolidated Balance Sheet

    3. Condensed Consolidated Balance Sheet US$ Million As of June 30, 2025 As of June 30, 2026 Current assets 29,761 50,655 ▪ Bank deposits and cash 4,587 6,081 ▪ Trade, notes and other receivables 16,025 28,267 ▪ Inventories 8,743 15,742 ▪ Others 406 565 Non-current assets 16,562 19,457 ▪ Property, pl

  28. Slide 28: 4. Condensed Cash Flow

    4. Condensed Cash Flow US$ Million 1Q FY25/26 1Q FY26/27 Net cash generated from operating activities 1,219 382 Net cash used in investing activities (421) (880) Net cash (used in)/generated from financing activities (1,087) 1,505 (Decrease)/increase in cash and cash equivalents (289) 1,007 Effect o

  29. Slide 29: 5. 1QFY26/27 Non-HKFRS Adjustments

    5. 1QFY26/27 Non-HKFRS Adjustments US$ Million 1Q FY25/26 1Q FY26/27 (Loss)/profit Profit Profit attributable to (Loss)/profit Operating profit Operating profit attributable to equity for the period equity holders for the period holders As reported 785 538 505 19 (478) (609) Non-HKFRS adjustments ▪

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