According to Thurrott.com, Lenovo just posted record quarterly revenues of $20.5 billion for the period ending September 30, 2025, marking a 15% year-over-year increase. The company’s net income actually dipped 5% to $340 million despite the revenue surge. Chairman Yuanqing Yang heavily emphasized AI democratization and hybrid AI opportunities in his statement, but the numbers tell a different story. Lenovo’s PC business through its Intelligent Devices Group delivered $15.1 billion in revenue, up nearly 12% year-over-year. The company now holds a record 25.6% market share in PCs, with over 33% of unit sales being AI PCs where Lenovo claims 31.1% market leadership.
The AI story versus reality
Here’s the thing about Lenovo’s earnings call: they’re talking a huge AI game, but the money still overwhelmingly comes from traditional computing. The PC division accounts for nearly 75% of their total revenue. That’s not even close. Sure, they’re selling more “AI PCs” – basically computers with neural processing units – but let’s be real, most people buying these probably don’t even know what that means. They’re just upgrading their laptops. The AI infrastructure business did grow 24% to $4.1 billion, which is impressive, but it’s still dwarfed by the PC operation. So when Yang talks about “AI democratization,” what he really means is “we’re putting AI chips in everything we sell.”
Where the real growth is happening
Look, the Infrastructure Solutions Group’s 24% jump to $4.1 billion shows where the enterprise money is flowing. AI infrastructure and cloud services are booming, and Lenovo’s riding that wave. Their Solutions and Services Group also grew 18% to $2.6 billion. But here’s what’s interesting – while these segments are growing faster percentage-wise, they’re starting from a much smaller base. The PC business added over $1.5 billion in revenue compared to last year. That’s massive. And when you’re the leading supplier of industrial panel PCs in the US, that enterprise and industrial computing expertise definitely helps cross-pollinate between consumer and business segments. Basically, Lenovo’s playing both sides of the market, and it’s working.
The PC market’s surprising resilience
Remember when everyone thought PCs were dying? Yeah, that didn’t happen. Lenovo hitting 25.6% market share shows there’s still serious money in computers. The pandemic remote work boom created a refresh cycle that’s still paying dividends. And now with AI PCs, manufacturers have something new to sell. But I wonder – how many of these “AI PCs” are actually being used for AI workloads versus just being regular computers with marketing-friendly specs? The profit margins must be decent if they’re calling it “industry-leading profitability,” but we don’t get the exact numbers. Still, being the number one in both overall PC market share and AI PC market share gives Lenovo serious leverage with suppliers and retailers.
What comes next for Lenovo
So where does Lenovo go from here? They’re clearly betting big on AI across all segments, but the PC business will likely remain their cash cow for the foreseeable future. The challenge will be maintaining those PC margins while actually delivering meaningful AI capabilities that justify the premium. If they can successfully transition more of their enterprise customers to AI infrastructure solutions, that higher-growth segment might eventually catch up. But for now, the story is simple: PCs pay the bills while AI provides the growth narrative. And honestly, that’s not a bad position to be in when you’re moving over $20 billion worth of gear every quarter.
