Analyst(s): Futurum Research
Publication Date: November 25, 2025

Lenovo’s Q2 FY 2026 update points to accelerating hybrid AI traction across devices, infrastructure, and services. The quarter underscores progress on AI PCs, AI servers, and expanding AI-led services that could influence enterprise deployment strategies over the next several quarters.

What is Covered in this Article:

• Lenovo’s Q2 FY 2026 financial results
• Personal AI and AI PC momentum in IDG
• AI infrastructure growth and ISG pipeline
• Services scale and AI-led solution mix in SSG
• Outlook and Final Thoughts

The News: Lenovo Group Limited (HKSE: 992; ADR: LNVGY) reported Q2 FY 2026 results. Revenue was $20.5 billion, up 15% year on year (YoY), versus Wall Street consensus of $20.1 billion. Intelligent Devices Group (IDG) revenue was $15.1 billion, up 12% YoY; Infrastructure Solutions Group (ISG) revenue was $4.1 billion, up 24% YoY; Solutions and Services Group (SSG) revenue was $2.6 billion, up 18% YoY. Gross margin was 15.4% (Q2 FY 2025: 15.7%). Adjusted net income was $512 million, up 25% YoY.

“Capitalizing on the AI democratization trend, and thanks to our clear strategy, operational excellence and relentless innovation, Lenovo delivered another quarter of record performance, while making important progress in both Personal AI and Enterprise AI,” said Yuanqing Yang, chairman and CEO of Lenovo. “We will continue to leverage our unique Global/Local model to navigate uncertainties and capture the tremendous Hybrid AI opportunities.”

Lenovo Q2 FY 2026 Earnings Highlight Hybrid AI Mix Gains

Analyst Take: Lenovo’s Q2 FY 2026 performance reflects strong execution against a hybrid AI thesis spanning devices, infrastructure, and services. The mix shift toward AI—now 30% of group revenue—suggests rising attach of AI features in PCs and smartphones and broadening adoption of AI infrastructure and services. Management emphasized a transition from cloud training to on-premises and edge inferencing, which should expand device and application pull-through. Cash generation and working capital discipline provide funding for continued AI investments as demand visibility improves into the second half.

Personal AI and IDG Momentum

Lenovo’s Personal AI strategy centers on “One Personal AI, Multiple Devices,” with a global launch of its Personal AI super agent slated for January 6, 2026. IDG revenue reached $15.1 billion, up 12% YoY, with a record 25.6% global PC market share and continued leadership across consumer and commercial. AI PC penetration rose to 33% of Lenovo PC shipments, with a 31.1% share in the global Windows AI PC segment, pointing to a durable refresh cycle. AI device revenue mix within IDG increased to 36%, up 17 points YoY, and Motorola delivered record smartphone volumes. Premium PC shipments grew 25% YoY, reinforcing margin support from higher-value segments. Together, these dynamics position IDG to monetize AI features across PCs, tablets, and smartphones as the Personal AI super agent expands the ecosystem.

Enterprise AI and ISG Pipeline

ISG revenue was $4.1 billion, up 24% YoY, supported by dual momentum in cloud service providers (CSP) and enterprise/SMB, and a strong AI infrastructure pipeline. AI server revenue grew at a high double-digit rate, underpinned by deployments spanning AI training clusters, GPUs as a service, and scaled liquid cooling. Neptune liquid cooling revenue rose 154% YoY, supporting higher-density systems and efficiency targets for advanced AI workloads. Management highlighted a market transition toward on-premises and edge inferencing, which can broaden ISG’s addressable market and pull through devices and applications. Localized offerings and the ODM+ model in China contributed to operating performance improvements and differentiated routes-to-market. ISG’s roadmap and customer expansion suggest rising leverage as inferencing workloads scale across hybrid environments.

Services Scale and AI Solutions

SSG revenue grew 18% YoY to $2.6 billion, marking the 18th consecutive quarter of YoY growth, with operating margin above 22%. Managed services plus Projects and Solutions accounted for 59.9% of SSG revenue, with AI services tripling YoY and deferred revenue up 17% YoY to $3.6 billion. Demand in hybrid cloud, AI, and Digital Workplace Solutions outpaced the addressable market, aided by TruScale DaaS and Infrastructure-as-a-Service wins. The Lenovo Hybrid AI Advantage—combining AI factory, AI services, and an AI solution library—targets repeatable, scalable use cases across verticals such as manufacturing and retail. Rising attach from devices continues to support support-services profitability and recurring revenue. This portfolio focus provides a foundation for higher-value services growth tied to enterprise AI adoption.

Outlook and Final Thoughts

Lenovo did not issue formal quantitative guidance, but management indicated confidence in double-digit growth in PCs and servers over the next two quarters and stable margins despite memory cost headwinds. The company plans to continue investing in AI devices, hybrid infrastructure, and repeatable AI solutions and services, supported by strong cash generation. With AI now 30% of group revenue, the setup favors continued mix shift toward AI-led offerings across IDG, ISG, and SSG. The upcoming Personal AI super agent launch should further connect devices and services, while the pivot to inferencing expands enterprise deployment options. Execution against CSP and enterprise/SMB dual strategies, plus localized models, remains a key lever for ISG’s profitability path.

See the full press release on Lenovo’s Q2 FY 2026 financial results on the company website.

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Disclosure: Futurum is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.

Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of Futurum as a whole.

Other insights from Futurum:

Lenovo Q1 FY2026 Earnings: Record $18.8B Revenue, 22% Growth on Hybrid AI Momentum

Lenovo Introduces TruScale DaaS to Support Greener IT

Can Lenovo’s GPU Services Close the AI Infrastructure Gap in Enterprises?

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