Lenovo Group Limited · HKEX:992
Lenovo — Q2 2026 Earnings Presentation
31 slides from Lenovo's earnings presentation, Nov 20, 2025
Slide 1: Q2FY26 Earnings Announcement
Q2FY26 Earnings Announcement November 20, 2025 2025 Lenovo Internal. All rights reserved. 2025 Lenovo Internal. All rights reserved.
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
Slide 3: Yuanqing Yang, Chairman & CEO
Yuanqing Yang Chairman & CEO November 20, 2025 2025 Lenovo Internal. All rights reserved.
Slide 4: Strong quarter, Record performance, Hybrid AI Strategy
Strong quarter Hybrid AI Strategy Record performance Significant progress 2023 Lenovo Internal. All rights reserved. 4
Slide 5: Group: Performance
Group: Performance Record results • Revenue: $20.5 billion, record high, driven by clear strategy & +15% YoY strong execution • Adjusted net profit: $512 million, +25% YoY • Strong growth across the board • Main businesses(IDG/ISG/SSG): all double-digit YoY revenue growth • Sales Geos: all double-di
Slide 6: Group: Outlook
Group: Outlook Record results ⚫ Positive signs of stabilization in external driven by clear strategy & environment strong execution ⚫ Operational resilience: leveraging unique model of “Global/Local” to navigate uncertainties ⚫ Driving strategy to capture Hybrid AI opportunities ⚫ AI democratization
Slide 7: Personal AI Progress
Personal AI Progress Innovation strengthening • Users demand AI outputs based on market leadership, own experiences, memories, behaviors enriching ecosystem & knowledge • Landing Personal AI strategy: “One Personal AI, Multiple Devices”, creating Personal AI Twin • Building Personal AI super agent a
Slide 8: Personal AI IDG Performance
Personal AI IDG Performance Innovation strengthening • Revenue $15.1 billion, +12% YoY market leadership, enriching ecosystem • Strong profitability, operating margin 7.3% • PC: revenue +17% YoY; industry leading profitability; market share 25.6%, record high; Windows AI PC market share 31.1%, maint
Slide 9: Enterprise AI Progress
Enterprise AI Progress Unleashing Hybrid AI • Enterprises prioritizing private domain, Advantage, from with growing emphasis on efficiency, infrastructure to response speed, security/privacy, solutions & services sustainability • Infrastructure market undergoing important shift: • From AI training i
Slide 10: Enterprise AI ISG Performance
Enterprise AI ISG Performance Unleashing Hybrid AI Advantage, from • Revenue $4.1 billion, +24% YoY infrastructure to • Continued CSP & ESMB dual strategy solutions & services • CSP: revenue FQ2 record high, +21% YoY • ESMB: revenue +30% YoY, optimizing/rebuilding the business models for enterprise
Slide 11: Enterprise AI SSG Performance
Enterprise AI SSG Performance Unleashing Hybrid AI Advantage, from • Revenue $2.6 billion, +18% YoY, 18th infrastructure to consecutive quarter of double-digit growth solutions & services • Operating margin 22.3% • Managed Services revenue +29% YoY • Projects & Solutions revenue +13% YoY • Solutions
Slide 12: Smarter AI for All
Smarter AI for All 2025 Lenovo Internal. All rights reserved. 12
Slide 13: Winston Cheng, Chief Financial Officer
Winston Cheng Chief Financial Officer Nov 20, 2025 2025 Lenovo Internal. All rights reserved.
Slide 14: Record Fiscal Quarter Revenue and Net Margin Expansion
Record Fiscal Quarter Revenue and Net Margin Expansion Double-digit YoY Revenue Growth across all BGs and Geos ✓ Record fiscal quarter revenue of US$20.5B Record revenue quarter and (+14.6% YoY), with double-digit YoY growth sustained operating margin expansion across all BGs Improved operating SSG
Slide 15: Cash Position
Cash Position Strong OCF and Continuous Finance Cost Reduction to Support Business Growth • OCF at US$1.5B and FCF at US$1.1B supporting future growth and sustainable business expansion Cash position supported by strong OCF, improved working capital and disciplined cash expenditure • 10-day YoY impr
Slide 16: Non-HKFRS Adjustments
Non-HKFRS Adjustments Operating Profit: Non-HKFRS Adjustments ($M) ✓ HKFRS net income was US$340M, including: 756 ✓ Non-cash fair value loss from Warrants: 643 0 148 US$148M -35 ✓ Notional interest from Convertible Bonds: US$28M As Reported Other Non- Fair Value Loss Notional Interest of Adjusted ✓
Slide 17: IDG: Intelligent Devices Group
IDG Intelligent Devices Group ($M) Revenue ($M) Operating Profit ✓ Expanded PC leadership globally with record-high PC global market share of 25.6%1 (+1.8pts YoY) +12% +11% 15,107 1,101 ✓ Industry-leading profitability, driven by solid 13,514 990 performance in high-margin segments: Premium PC2 ship
Slide 18: PC Leadership in All Key Categories
PC Leadership in All Key Categories Windows Commercial Consumer Gaming Premium PC AI PC #1 global M/S #1 global M/S #1 global M/S #1 global M/S #1 global M/S 28.6% 22.1% 19.7% 31.1% 24.7% +2.2pts YoY +1.2pts YoY +1.5pts YoY +2.2pts YoY +1.9pts YoY 2025 Lenovo Internal. All rights reserved. Source: I
Slide 19: ISG: Infrastructure Solutions Group
ISG Infrastructure Solutions Group ($M) Revenue ($M) Operating Loss ✓ Strong 2Q revenue growth of 24% YoY with improved operating performance, driven by CSP new customer +24% +$4M acquisitions and advancing Enterprise and SMB transformation; Neptune liquid-cooling revenue up 4,087 -36 -32 154% YoY 3
Slide 20: ISG Customer Win Highlights in 2QFY25/26
ISG Customer Win Highlights in 2QFY25/26 CSP ESMB Liquid Cooling Renewable AI Infrastructure Provider Communication Software Provider AI Cloud Provider Delivered compute, storage and Delivered storage infrastructure supporting Delivered the first liquid-cooled AI networking solutions to support the
Slide 21: Well-Positioned to Capture Enterprise and SMB AI Growth Opportunities
Well-Positioned to Capture Enterprise and SMB AI Growth Opportunities Enterprise Data Rise of Internet & Data Large Language Model Next Stage: Adoption Service Providers Training, Hyperscaler AI AI Inferencing Enterprise and SMB accounted for CSP increased to 50% of server Aggressive CSP investment
Slide 22: SSG: Solutions & Services Group
SSG Solutions & Services Group ✓ Record revenue quarter and 18th consecutive quarter of ($M) Revenue ($M) Operating Profit double-digit growth (+18% YoY). Operating margin +18% +29% sustained at 22% 2,556 571 2,165 442 ✓ Growing 2X that of the addressable market1, with robust long-term prospects und
Slide 23: Managed Services, Project Solutions Driving Segment Growth
Managed Services, Project Solutions Driving Segment Growth Revenue Mix SSG Core Growth Drivers Managed Services + Project & Solutions Past 4-year CAGR 3QFY2021-2QFY2526 • Differentiated, tech-led service cost optimization for customers and strengthened long-term engagement Managed Services + • Capit
Slide 24: Lenovo: A Leader in ESG
Lenovo: A Leader in ESG A More Sustainable Future for All Environmental Progress Smarter Social Impact Governing Ethical Innovation Ranked 8th in the 2025 Gartner® Recognized again as a “best place to Strategic collaboration on circular Supply Chain Top 25 work” for Disability Inclusion economy init
Slide 25: 2025 Lenovo Internal. All rights reserved.
2025 Lenovo Internal. All rights reserved.
Slide 26: Supplemental Financial Materials
Supplemental Financial Materials 1. Financial Summary 2. Condensed Consolidated Income Statement 3. Condensed Consolidated Balance Sheet 4. Condensed Consolidated Cash Flow Statement 5. Non-HKFRS Adjustments 2025 Lenovo Internal. All rights reserved.
Slide 27: 1. Financial Summary
1. Financial Summary US$ Million 2Q FY24/25 2Q FY25/26 YoY% Revenue 17,850 20,452 15% Gross profit 2,796 3,147 13% Operating expenses (2,145) (2,504) 17% Operating profit 651 643 -1% Operating profit (Adjusted) 692 756 9% Other non-operating income/ (expenses) - net (178) (149) -16% Profit before ta
Slide 28: 2. Condensed Consolidated Income Statement
2. Condensed Consolidated Income Statement US$ Million 2Q FY24/25 2Q FY25/26 Revenue 17,850 20,452 Cost of sales (15,054) (17,305) Gross profit 2,796 3,147 Selling and distribution expenses (868) (963) Administrative expenses (746) (802) Research and development expenses (548) (581) Other operating
Slide 29: 3. Condensed Consolidated Balance Sheet
3. Condensed Consolidated Balance Sheet US$ Million As of Sep 30, 2024 As of Sep 30, 2025 Current assets 28,206 33,217 Bank deposits and cash 4,239 5,207 Trade, lease, notes and other receivables 14,377 18,901 Inventories 9,119 8,617 Others 471 492 Non-current assets 16,258 16,614 Property, plant an
Slide 30: 4. Condensed Consolidated Cash Flow Statement
4. Condensed Consolidated Cash Flow Statement US$ Million 2Q FY24/25 2Q FY25/26 Net cash generated from operating activities 987 1,543 Net cash used in investing activities (205) (358) Net cash used in financing activities (627) (562) Increase in cash and cash equivalents 155 623 Effect of foreign e
Slide 31: 5. Non-HKFRS Adjustments
5. Non-HKFRS Adjustments US$ Million 2Q FY24/25 2Q FY25/26 Profit Profit Operating Profit before Profit for the attributable Operating Profit before Profit for the attributable profit taxation period to equity profit taxation period to equity holders holders As reported 651 473 383 359 643 494 380 3