Shares of LENOVO GROUP (HKEX: 00992) rose more than 6% during the trading session, leading gains among blue-chip stocks. At the time of writing, the stock was up 5.46% to HK$25.9, with a turnover of HK$3.969 billion.

The company reported revenue of US$83.075 billion for the 2025/26 fiscal year, representing a 20% year-on-year increase. Adjusted net profit reached US$2 billion, up 42% from the previous year. For the first time, all three of Lenovo's core business groups—Intelligent Devices Group (IDG), Infrastructure Solutions Group (ISG), and Solutions & Services Group (SSG)—achieved full-year profitability.

In the 2025/26 fiscal year, Lenovo's AI-related revenue grew by 105% compared to the prior year. The Infrastructure Solutions Group (ISG), whose core offerings include AI servers, data centers, and liquid cooling technology, reported revenue of US$19.2 billion, a 32% increase.

Analysts at Goldman Sachs have raised their earnings per share (EPS) growth forecast for Lenovo for the 2027-2028 calendar years to 25% annually, up from a previous estimate of 24%. They also project an operating profit margin of 3.8%, compared to an earlier forecast of 3.7%.

The investment bank believes the company's Infrastructure Solutions Group, AI-powered personal computers, and AI servers can drive a re-rating of the stock. This shift would help diversify Lenovo's business away from the highly competitive consumer electronics market and position it to benefit from the generative AI trend. As the world's leading PC brand, Lenovo is expected to be a primary beneficiary of the AI PC development cycle.