Lenovo Tops Revenue Estimates Amid AI Server Demand Surge
Lenovo reported $20.5 billion in revenue for Q3 2025, a 15% year-over-year increase that surpassed analyst expectations of $20.1 billion. The growth was driven by robust demand for AI servers, though operating margins tightened as net income fell 5% to $340 million.
Memory chip price volatility emerged as a key pressure point, with Morgan Stanley downgrading Lenovo and Dell shares citing rising component costs. The trend reflects broader challenges for hardware manufacturers balancing AI infrastructure investments against consumer PC market softness.
Industry analysts note Lenovo's strategic pivot toward enterprise AI solutions appears to be offsetting macroeconomic headwinds in China, where sluggish consumer spending continues to weigh on traditional hardware sales.
