Goldman Sachs released a research report stating that Lenovo Group (00992) posted results for the first quarter of fiscal 2027, ending June 30, that far exceeded expectations. Revenue surged 43% year-on-year to $27 billion, beating the bank's and market's forecasts by 22% and 20%, respectively.

Adjusted net profit soared 176% year-on-year to $1.1 billion, surpassing Goldman Sachs' and consensus estimates by 48% and 68%. Gross margin further expanded to 16.5%, also exceeding the bank's and market expectations. Goldman Sachs maintains its 'Buy' rating on Lenovo Group with a target price of HK$31, representing approximately 17.3 times the forecast price-to-earnings ratio for fiscal 2027.

During the period, the Intelligent Devices Group (IDG) revenue grew 27% year-on-year to $17 billion, accounting for 63% of total revenue. PC shipments declined 2% year-on-year, outperforming the global market's 4% decline, while the global market share of AI PCs rose to 25%. Smartphone revenue achieved double-digit growth. The Infrastructure Solutions Group (ISG) revenue surged 98% year-on-year to $8.5 billion, representing 32% of total revenue, with AI server orders reaching $54 billion.