The finished deck
Lenovo FY26 Business Review
Executive Leadership · Board · 20 of 20 slides finished · built from 53 things people sent in
- We grew 11% in a market that shrank 3%.$68.4BFY26 revenue · +11.2% year on year17.6%Gross margin$2.1BOperating profit31%Non-PC revenue shareGrowth came from enterprise infrastructure and services, not from device volume. Device units were flat; the mix moved up.The mix shift, not the market, produced the year.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review1
1We grew 11% in a market that shrank 3%.
- Five things decided FY26.Two went our way, two cost us, and one is still open going into FY27.01Infrastructure Solutions grew 34% and turned profitable for the first full year02Services attach reached 28% of enterprise deals, short of the 33% commitment03Component costs rose 9% in H2 and were absorbed rather than passed through04EMEA lost two points of share after the channel restructure05AI PC demand arrived one quarter later than planned and is still buildingGrowth is structural; the margin pressure is not yet solved.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review2
2Five things decided FY26.
- FINANCIAL PERFORMANCEEvery quarter beat the one before it.H2 carried the year: Q3 and Q4 together delivered 56% of FY26 revenue, the widest H1/H2 split in five years.Gross Margin Bridge FY26.xlsx is attached, but it carries no comparable series yet — add the figures and this slide draws itself.The year was won in the second half.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review3
3Every quarter beat the one before it.
- FINANCIAL PERFORMANCEInfrastructure grew 34% while devices held flat.Intelligent Devices remained the base of the business at $46.1B. Infrastructure Solutions added $3.9B of new revenue on its own.Gross Margin Bridge FY26.xlsx is attached, but it carries no comparable series yet — add the figures and this slide draws itself.One group grew; the other funded it.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review4
4Infrastructure grew 34% while devices held flat.
- Coverage is 3.1x against a 3.5x target.3.1xGlobal pipeline coverage · Target 3.5x4.2xEnterprise coverage2.2xMid-market EMEAEnterprise coverage is healthy; the gap sits entirely in mid-market EMEA.One segment, in one region, explains the shortfall.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review5
5Coverage is 3.1x against a 3.5x target.
- SALES & PIPELINEThree regions over quota, EMEA at 91%.AP finished at 112% on the back of India and Japan. EMEA missed for the second year.Global Pipeline Coverage.xlsx is attached, but it carries no comparable series yet — add the figures and this slide draws itself.EMEA is the only structural miss.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review6
6Three regions over quota, EMEA at 91%.
MARKETING & BRANDMarketing sourced $4.2B of pipeline, up 22%.Two campaigns produced 61% of it. The rest of the portfolio delivered below cost of capital.Concentrate the budget; two campaigns carried the portfolio.Marketing · AI PC launch activationLenovoLenovo Confidential — Internal Use Only · FY26 Business Review77Marketing sourced $4.2B of pipeline, up 22%.
- Fourteen launches, four of them category-defining.OperationsWeekly OTD, all lanesOperationsFourteen launches shipped in FY26, four of them in new categories. AI PCs reached 19% of premium mix within two quarters of availability. R&D reached $2.4B, 3.5% of revenue, with two thirds of the increase going into AI and infrastructure. 1,240 patents were filed, up 9%.OperationsAutomation lineThe portfolio turned over faster than in any prior year.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review8
8Fourteen launches, four of them category-defining.
- On-time delivery held at 94.6% through two disruptions.94.6%On-time delivery · +0.5 pts year on year11 daysAverage lead time99.1%Order accuracyThe Osaka carrier change and the Q3 panel shortage were both absorbed without a customer-facing miss above 1%.Reliability held under real pressure.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review9
9On-time delivery held at 94.6% through two disruptions.
SERVICES & SOLUTIONSServices grew 21% and still missed attach.Revenue growth is real. Attach rate — the share of deals that include services — is the number that did not move.Growing revenue on a shrinking share of deals.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review1010Services grew 21% and still missed attach.
CUSTOMER SUCCESSNet revenue retention reached 114%.Expansion in the installed base offset every loss except two large accounts.The installed base is growing itself.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review1111Net revenue retention reached 114%.
- REGIONAL PERFORMANCEAsia Pacific grew 19%, EMEA fell 2%.The global growth number hides a twenty-one point spread between our best and worst regions.Quota Attainment by Region.xlsx is attached, but it carries no comparable series yet — add the figures and this slide draws itself.There is no global performance — only four regional ones.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review12
12Asia Pacific grew 19%, EMEA fell 2%.
- Americas grew 9% on infrastructure alone.$21.4BAmericas revenue · +9.1%104%Quota attainment34%Non-PC shareDevice revenue was flat. Every dollar of growth came from infrastructure and services.The Americas already look like the FY27 target mix.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review13
13Americas grew 9% on infrastructure alone.
- PEOPLE & CULTUREHeadcount grew 2% while revenue grew 11%.Growth was concentrated in engineering and services delivery; corporate functions shrank.The organisation got more technical, not bigger.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review14
14Headcount grew 2% while revenue grew 11%.
- Three delivered, one is late, one was stopped.Each initiative is shown against the outcome it was funded for, not against its activity plan.Honest scoring, including the one we stopped.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review15
15Three delivered, one is late, one was stopped.
- STRATEGIC INITIATIVESThe AI platform moved from pilot to production in three markets.Forty-one deployments live, $340M of attached revenue, and a reference architecture now reusable across industries.This bet is paying and should be funded harder.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review16
16The AI platform moved from pilot to production in three markets.
- Four risks are rated high; three have live mitigations.Component pricing, EMEA recovery, AI demand timing and regulatory exposure in two markets.One high risk has no mitigation yet.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review17
17Four risks are rated high; three have live mitigations.
- We are guiding to 8-10% growth and 18.5% gross margin.8-10%Revenue growth · Below FY26, above market18.5%Gross margin target35%Non-PC revenue shareGuidance assumes flat device volumes, continued infrastructure growth and no further component inflation beyond Q2.Growth slows; quality of revenue improves.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review18
18We are guiding to 8-10% growth and 18.5% gross margin.
- Four priorities, one owner each.Everything else in the plan is maintenance work and does not need this room's attention.01Fix services attach — change seller compensation in Q1 — Sofia Márquez02Rebuild EMEA mid-market coverage — Marcus Peel03Scale the hybrid AI platform to eight markets — Priya Raman04Hold cost per unit flat against component inflation — Kenji ItoFour priorities, four names, four dates.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review19
19Four priorities, one owner each.
FY27 OUTLOOKTwo decisions: services compensation, and EMEA coverage funding.Both are Q1 decisions. Everything else in the FY27 plan is already owned, funded and dated.Decide these two today and the rest of FY27 runs without this room.LenovoLenovo Confidential — Internal Use Only · FY26 Business Review2020Two decisions: services compensation, and EMEA coverage funding.