Lenovo has revenue above expectations, with an increase of 25% in the 1st quarter

The Lenovo Group, the world's largest computer manufacturer, announced this Friday (22) a 27% increase in quarterly revenue, better than expected by the market, supported by strong demand for PCs.

The Chinese company's PC, tablet and smartphone division - its biggest source of revenue - saw a 24% increase in revenue in the quarter ending in March, the highest quarterly growth rate in five years.

The good performance comes after the company previously warned about pressure generated by increasingly serious memory chip shortages. Lenovo also raised PC prices to mitigate the impact of rising component costs.

"The supply (of memory chips) is in great shortage, and the cost is growing faster," Lenovo Chief Executive Yang Yuanqing told Reuters, adding that its more diverse supplier base - which includes Chinese manufacturers - helped manage the impact.

In a prospectus filed earlier this month, ChangXin Memory Technologies, China's top memory chip maker, identified Lenovo as one of its top customers and reported a more than 700% jump in first-quarter revenue due to a rise in memory chip prices.

Memory chip prices doubled in the first quarter alone compared to the same period last year and are expected to rise by up to 63% in the current quarter, due to demand from artificial intelligence data processing centers.

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Lenovo said fiscal fourth-quarter revenue jumped to $21.6 billion, beating analysts' average expectation of $18.7 billion.

Net profit jumped 479% to US$521 million, also beating analyst expectations of US$271 million, according to data compiled by LSEG.

Global PC sales rose 3.2% in the first quarter of 2026 to 63.3 million units, and Lenovo sales rose 9% to 16.5 million units, giving the company a 26% market share, according to Counterpoint Research.

Source: CNN