Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallLenovo reported record fiscal-third-quarter revenue of $22.2 billion for the quarter ended December 31, 2025, an 18% year-over-year increase. The result was broad-based: PCs and smart devices, infrastructure, smartphones, and services all grew. But reported net income fell about 21% to approximately $546 million, largely because of a $285 million infrastructure-restructuring charge and rising costs across the hardware supply chain.
Lenovo’s adjusted net income rose 36% to $589 million. That split—strong underlying growth but weaker reported earnings—captures the central issue for investors, enterprise buyers, and PC customers: Lenovo is benefiting from AI demand while memory prices, restructuring, and the cost of scaling infrastructure threaten margins.
What the 18% revenue increase means
The figure is quarterly group revenue, not annual sales. It covers Lenovo’s fiscal third quarter of fiscal year 2025/26, announced February 12, 2026, for the period ending December 31, 2025. Revenue was 18% higher than in the comparable quarter a year earlier and set Lenovo’s all-time fiscal-quarter record.
| Measure | Fiscal Q3 2025/26 result | Year-over-year change |
|---|---|---|
| Group revenue | $22.2 billion | Up 18% |
| Reported net income | Approximately $546 million | Down 21% |
| Adjusted net income | $589 million | Up 36% |
| AI-related revenue | 32% of group revenue | Up 72% |
| Intelligent Devices Group | $15.8 billion | Up 14% |
| Infrastructure Solutions Group | $5.2 billion | Up 31% |
| Solutions and Services Group | $2.7 billion | Up 18% |
Lenovo’s official results are available in its Q3 fiscal 2025/26 release. The approximately $546 million reported-net-income figure is also discussed in Paul Thurrott’s earnings report.
Quick wins for a faster PC:
Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →#1 Best Overall
- ⚡ POWERFUL PERFORMANCE FOR EVERYDAY TASKS: Intel N150 quad-core processor (up to 3.6GHz turbo) with 8GB LPDDR5-4800 RAM delivers smooth multitasking for web browsing, document editing, video streaming, and light productivity. 128GB UFS 2.2 storage provides fast boot times and quick app launches for your essential programs and files. Bundled with 500GB Portable External Hard Drive.
- 🖥️ IMMERSIVE 15.6" FHD DISPLAY: Crystal-clear 1920x1080 Full HD resolution with 88% screen-to-body ratio maximizes your viewing area. Anti-glare coating reduces eye strain during extended use, while Dolby Audio-enhanced stereo speakers deliver rich, clear sound for entertainment and video calls.
- 🎒 ULTRA-PORTABLE & DURABLE DESIGN: Weighing just 3.42 lbs (1.55 kg) with a slim 0.70" profile, this laptop easily fits in any bag for on-the-go productivity. MIL-STD-810H military-grade tested for durability. HD 720p camera with privacy shutter protects your privacy when not in use.
- 🌐 SEAMLESS CONNECTIVITY: Wi-Fi 6 (802.11ax) and Bluetooth 5.2 ensure fast, reliable wireless connections. Versatile ports include 2x USB-A, 1x USB-C (with Power Delivery and DisplayPort), HDMI 1.4, SD card reader, and headphone jack - connect all your devices and peripherals with ease.
- 💻 READY TO USE OUT OF THE BOX: Pre-installed Windows 11 Home and Microsoft 365 Personal get you started right away with the latest features and productivity tools. ENERGY STAR 9.0 certified and TÜV Rheinland Low Blue Light certified for reduced eye strain during extended computing sessions.
Where Lenovo’s growth came from
PCs, smart devices, and Motorola
The Intelligent Devices Group (IDG) generated $15.8 billion, up 14%. Lenovo said its PC and smart-devices business grew 17% and that PC volume outpaced the market for the tenth consecutive quarter. Lenovo’s calendar-year PC share reached 24.9%, while its share in the quarter was 25.2%; those figures cover different periods and should not be treated as interchangeable.
Motorola also delivered record quarterly smartphone volume and activations. These results show that the quarter was not solely an AI-server story. However, some PC purchases may have been brought forward as customers anticipated higher prices caused by memory and other component shortages. That would strengthen one quarter without proving that underlying consumer demand has permanently improved.
Infrastructure and AI servers
The Infrastructure Solutions Group (ISG) produced $5.2 billion, up 31%. Lenovo attributed the increase to cloud-service-provider demand, enterprise and small-business transformation, and accelerating AI-server adoption. AI-server revenue grew at a high double-digit rate.
Rank #2
- ENTERPRISE-READY PERFORMANCE - Built for business professionals and SMBs who want more than the E16 or ThinkBook 16 without stretching to the T16, the ThinkPad L16 delivers dependable performance, durable design, and exceptional value for everyday productivity. Engineered for reliability, it is MIL-STD-810H certified to withstand demanding fieldwork and travel. With long battery life and rapid charging (80% in 1 hour), keeping you productive on the go
- POWERFUL PERFORMANCE - Powered by an Intel Core Ultra 5 225U Processor (12 cores, up to 4.8 GHz) with AI capabilities and Intel Graphics, this AI PC delivers exceptional performance for demanding professional workloads. It features 32GB DDR5 RAM for seamless multitasking and a 1TB SSD for fast storage and reduced load times, ensuring smooth and responsive performance for all your tasks
- CRISP DISPLAY - This laptop features a 16" WUXGA (1920x1200) IPS touchscreen, coupled with 400-nit, anti-glare technology and Eyesafe Certified 2.0 for crisp, comfortable viewing. It supports workspace expansion to 3 external monitors via HDMI (max 4K@60Hz) or Thunderbolt 4 (max 8K@60Hz) without a docking station. Plus, the 5MP IR camera with privacy shutter supports facial recognition and delivers clear video quality for virtual meetings
- VERSATILE CONNECTIVITY - Equipped with 2x Thunderbolt 4, 2x USB-A 3.2, USB-A 2.0, Ethernet (RJ-45), HDMI 2.1, and a headphone/mic combo jack, it also features Wi-Fi 6E and Bluetooth 5.3 for fast, reliable wireless connectivity. Besides, it boosts security with a fingerprint reader and TPM 2.0, and includes a backlit keyboard for comfortable typing in any lighting condition, while a numeric keypad facilitates efficient data entry and calculations
- OPERATING SYSTEM - Pre-installed with Microsoft Windows 11 Pro, offering enterprise-grade security with BitLocker and Remote Desktop, designed to support demanding professional applications and enhanced by AI Copilot for smarter, more efficient productivity across business and creative tasks
Lenovo reported a $15.5 billion AI-server pipeline. A pipeline is prospective demand, not recognized quarterly revenue or necessarily booked orders, so it should not be added to the $22.2 billion sales figure. Lenovo also said revenue from its Neptune liquid-cooling technology rose 300% year over year, reflecting the power and thermal demands of dense AI systems.
Free tools Windows power users keep installed
One-click scans. No signup required.
Services and solutions
The Solutions and Services Group (SSG) grew 18% to $2.7 billion, its nineteenth consecutive quarter of year-over-year revenue growth. Operating margin exceeded 22%, an improvement of 2.1 percentage points. Managed services plus project and solutions work represented nearly 60% of SSG revenue.
Lenovo linked demand to enterprises moving AI projects from experimentation toward production. Services can provide a more recurring-oriented and potentially more margin-supportive mix than hardware, but Lenovo does not characterize every dollar of SSG revenue as recurring.
Rank #3
- Performance to Power your Potential - The 14" Lenovo ThinkPad E14 Gen 7 laptop is ideal for life on the go. Fueled by AMD Ryzen 7 250 3.30GHz processor (upto 5.1GHz), it boosts multitasking while advanced AI dynamically optimizes workloads to elevate productivity.
- Effortless Mobility, Unwavering Strength - Lightweight yet compact, it ensures portability for uninterrupted work. Remarkably thin and light for true mobility, the E14 Gen 7 powerhouse combines premium performance with a durable design. Its components incorporate recycled plastic in its build to reduce environmental impact. Moreover, it’s MIL-STD-810H tested to withstand extreme real-life circumstances, offering unwavering reliability for any work environment.
- Clear and Comfortable Viewing All Day - Stunning graphics tackle complex projects and creative tasks with ease. 14.0" IPS WUXGA (1920x1200) 60Hz Antiglare display with 300nits brightness.
- Fast Multitasking and Expanded Connectivity - 16GB DDR5 SODIMM RAM, 512GB 2242 PCIe NVMe SSD, 802.11ax Wi-Fi, Bluetooth 5.3, RJ-45, 5M RGB Webcam, Fingerprint Reader, Backlit Standard Keyboard, HDMI, Thunderbolt 4, USB 3.2 Type-C, Headphone/Microphone Combo Jack.
- Professional-Grade Operating System – Windows 11 Pro 64-bit offers enterprise-grade security and productivity tools, enhanced by AI-powered Copilot for smarter task management. Perfect for professionals, educators, creators, developers, small business users, and anyone needing a reliable system for streaming, online classes, and virtual meetings.
How important is AI to the result?
Lenovo said AI-related revenue increased 72% year over year and represented 32% of group revenue. That is a company-defined category covering:
- AI PCs and other intelligent devices;
- AI servers and related infrastructure;
- AI-enabled services; and
- Enterprise AI solutions.
The 32% figure should therefore be read as Lenovo’s own classification, not as an independently standardized measure of pure AI sales. AI was a major growth engine, but PCs, smartphones, conventional infrastructure, and services also contributed to the quarter.
Why reported net income fell while adjusted income rose
Lenovo undertook a strategic restructuring of ISG and recorded a $285 million one-time charge during the quarter. That charge helped push reported net income down 21% to approximately $546 million despite the 18% revenue increase.
Rank #4
- DISCLOSURE - Brand New Computer has been resealed to upgrade Memory/SSD. 1 Year warranty by Issaquash Highlands Tech
- ENTERPRISE-READY PERFORMANCE - Built for business professionals and SMBs who want more than the E16 or ThinkBook 16 without stretching to the T16, the ThinkPad L16 delivers dependable performance, durable design, and exceptional value for everyday productivity. Engineered for reliability, it is MIL-STD-810H certified to withstand demanding fieldwork and travel. Delivers up to 10 hours of battery life with fast charging (80% in 1 hour), keeping you productive on the go
- POWERFUL PERFORMANCE - Powered by an Intel Core Ultra 5 225U Processor (12 cores, up to 4.8 GHz) and integrated Intel Graphics, the AI PC delivers power-efficient performance for demanding workloads. Configurable with memory options from 8GB to 64GB DDR5 RAM and storage options from 256GB to 2TB M.2 NVMe PCIe SSD, enabling smooth multitasking and fast loading across a wide range of applications
- CRISP DISPLAY - Features a 16" WUXGA (1920×1200) IPS display with a high-brightness 400-nit anti-glare screen, ensuring peak productivity even in sunlit offices or cafes, eliminating the washed-out look typical of standard business laptops. Supports up to 3 external displays via HDMI (max 4K@60Hz) or Thunderbolt 4 (max 8K@60Hz), enabling flexible multi-screen productivity for data analysis without a docking station. A 720p webcam with privacy shutter ensures clear video conferencing and security
- ADVANCED CONNECTIVITY - Equipped with 2x Thunderbolt 4, 2x USB-A 3.2 Gen 1, USB-A 2.0, HDMI 2.1, Ethernet (RJ-45), and a headphone/mic for flexible connectivity. Features Wi-Fi 6E and Bluetooth 5.3 for ultra-fast, stable wireless. Enhanced with a fingerprint reader, backlit keyboard, and a dedicated numeric keypad for secure, efficient typing in any environment
Adjusted net income excludes specified non-operating items and one-time gains and charges. On that basis, income rose 36% to $589 million, equal to a 2.7% adjusted net-income margin. Both statements are accurate: reported profit declined, while Lenovo’s adjusted measure increased. The adjusted figure does not make the restructuring cost disappear; it presents operating performance without that specified item.
Lenovo expects the restructuring to generate more than $200 million in annual run-rate savings over the next three years. Whether those savings offset execution costs and infrastructure pressure will become clearer in subsequent results.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why memory shortages matter
Lenovo’s chief executive warned, as reported by Thurrott, that the memory shortage could continue through the end of 2026 and said memory costs had risen roughly 40% to 50% from the prior year. Those percentages are management commentary reported by Thurrott, not a universal industry measurement.
Best Value
- Processor & Performance: AMD Ryzen 7 7735HS (8C/16T, up to 4.75GHz) | Integrated Radeon 680M Graphics
- Display & Audio: 16" WUXGA (1920x1200) IPS Anti-Glare | FHD 1080p IR Camera + Privacy Shutter | Dolby Atmos | HARMAN Stereo Speakers | Dual Microphones
- Memory & Storage: 16GB DDR5 | 1TB PCIe NVMe SSD + 500GB Ext HDD
- Connectivity: Wi-Fi 6E (2.4/5/6GHz) | Bluetooth 5.3 | 2x USB-C (PD 3.0 + DP 1.4) | HDMI 2.1 (4K@60Hz) | RJ-45 Ethernet | 2x USB-A (5Gbps + 10Gbps Always On) | 3.5mm Combo
- Security & OS: TPM 2.0 | Fingerprint Reader (Power Button) | IR Facial Recognition | Windows 11 Pro. Backlit English EU Keyboard | Thin 16" Black Chassis | Ideal for Business, Education, Hybrid Work
Higher DRAM and other component costs could:
- raise Lenovo’s manufacturing costs;
- force higher prices for some PCs or configurations;
- reduce affordability and unit demand;
- compress gross margins if prices lag cost increases;
- pull purchases forward before price increases, followed by weaker demand; and
- make AI-server expansion more expensive or constrain shipments when supply is tight.
Price and availability will vary by region, product, configuration, and sales channel. The shortage is a risk to future growth, not an explanation for every dollar of this quarter’s increase.
What the quarter says about Lenovo’s strategy
Lenovo is becoming less dependent on a single PC cycle. PCs and smart devices provide scale and market-share gains; AI infrastructure supplies faster growth; smartphones add another volume engine; and SSG adds services, projects, and solutions around enterprise technology.
The portfolio also creates competing pressures. AI systems require expensive GPUs, memory, networking, cooling, and supply-chain capacity. Lenovo must convert AI demand into recognized revenue at acceptable margins while managing the restructuring of ISG and protecting the economics of its device business.
Quick Recap
What to watch in the next earnings report
- PC share and volume: whether share remains above 25% and whether demand holds after price increases.
- Reported versus adjusted income: whether the gap narrows as restructuring charges fade.
- Gross margins: whether memory and other component inflation is being passed through to customers.
- AI-pipeline conversion: how much of the $15.5 billion pipeline becomes recognized revenue.
- ISG profitability: whether restructuring savings improve results without impairing execution.
- Services mix: continued growth in managed services and project-and-solutions revenue.
- Motorola performance: whether record volume and activations persist.
- AI-related growth: whether it continues to outpace Lenovo’s overall revenue growth.
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
