Lenovo Group Ltd S/Adr (LNVGY) Q1 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, good afternoon, and good evening. Welcome to Lenovo's Earnings Investor Webcast. This is Lisi Yuan, Director of Investor Relations at Lenovo. Thanks everyone for joining us. Before we start, let me introduce our management team joining the call today. Yuanxin Yang, Lenovo's Chairman and CEO. Winston Cheng, Group CFO. Luca Rossi, President of Intelligent Devices Group. Ashley Grapparala, President of Infrastructure Solutions Group, and Sergio Bruniak, Senior VP of Mova Business Group and President of Motorola. We will begin with earnings presentations, and after that, we'll open the call for questions. Now, let me turn it over to Yuanqing. Yuanqing, please. Hello, everyone, and thank you for joining us. Today, I'm pleased to report that Lenovo has started the 2025-2026 fiscal year strong, with record-breaking first quarter results. This is a remarkable achievement amidst the challenges of terrible volatility and geopolitical landscape. Our group revenue grew by 22% year-on-year to $18.8 billion, an all-time high for our first fiscal quarter. Net income on a non-Hong Kong FIS basis also increased 22% year-on-year. On a Hong Kong FIS basis, our net income more than doubled year-on-year, reaching more than US$500 million. The difference is mainly due to the non-cash failed value gain on warrants as a result of the share price movement. In the coming quarters, this factor may continue to have either a positive or negative impact. so we encourage the stakeholders to focus more on our actual operating performance and non-Hong Kong FIS measures. All of our main businesses achieved solid double-digit revenue growth year-on-year. Our PC business, in particular, delivered over 20% revenue growth, the fastest pace in 15 quarters. Our non-PC revenue mix now reached ...