Lenovo shares surged nearly 20% to a record high after the technology company reported stronger-than-expected quarterly earnings, driven by significant revenue growth and rising demand for AI infrastructure. The results highlighted accelerating momentum across Lenovo’s major business segments, particularly its artificial intelligence server operations.
Lenovo Reports Record Quarterly Results
Lenovo’s fiscal first-quarter FY2027 revenue increased 43% year over year to a record $26.9 billion, while adjusted net profit surged 176% to $1.075 billion.
The company exceeded analyst expectations by a wide margin. Revenue surpassed the consensus estimate of approximately $22.3 billion by more than 20%, while adjusted profit more than doubled market forecasts.
AI Server Demand Drives Growth
Investor attention has focused on Lenovo’s growing artificial intelligence infrastructure business, with the company’s AI server order backlog reaching approximately $21 billion.
Morgan Stanley previously raised its price target for Lenovo to HK$34 from HK$30 while maintaining an Overweight rating, citing stronger-than-expected AI server demand and the company’s ability to convert its backlog into profitable growth.
JPMorgan also upgraded Lenovo to Overweight, highlighting improving server profitability and continued strength in the Intelligent Devices segment.
Lenovo Outperforms Broader Market
The strong earnings performance helped Lenovo outperform the broader Hong Kong market. While the Hang Seng Index gained only 0.2%, Lenovo shares climbed sharply following the earnings announcement.
