Lenovo Group Ltd S/Adr (LNVGY) Q1 2027 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning, good afternoon, and good evening. Welcome to Lenovo's earnings webcast. This is Lixi Yuan, Director of Investor Relations at Lenovo. Thanks everyone for joining us today. Before we start, let me introduce our management team joining the call today. Yuanqing Yang, Lenovo's Chairman and CEO. Winston Cheng, Group CFO. Luca Rossi, President of Intelligence Devices Group. Ashley Grauparala, President of Infrastructure Solutions Group. Ken Wong, President of Solutions and Services Group. We will begin with Ernie's presentations, and after that, we will open the call for questions. Now, let me turn it over to our Chairman and CEO, Yuanqing Yang. Yuanqing, please. Hello, everyone, and thank you for joining us today. I'm pleased to share that Lenovo just delivered the best quarter in our entire history. Record revenue, record adjusted profit, and record AI momentum. This once again validates our strategic foresight and the strength of our execution. Powered by our hybrid AI strategy, operational excellence, and relentless innovation, we are confident in sustaining this growth momentum and driving long-term profitability. Let's start with the Group level. We delivered a record revenue of $26.9 billion, up 43% year-on-year. Adjusted net income exceeded the $1 billion milestone for the first time, up 176% year-on-year. With adjusted net margin, significantly improved by almost 2 points year-on-year. Equally important, all Binz Groups delivered strong double-digit revenue growth and set new fiscal Q1 records. And all geographies delivered strong revenue growth ranging from 25% to 58%. With the consistent execution of our hybrid AI strategy, AI-related revenue accelerated to over US$9 billion, up 60% year-on-year, now accounting for 35% of group revenue. At the same ...