We grew 11% in a market that shrank 3%.
$68.4B
FY26 revenue · +11.2% year on year
17.6%
Gross margin
$2.1B
Operating profit
31%
Non-PC revenue share
Growth 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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
1
Five things decided FY26.
Two went our way, two cost us, and one is still open going into FY27.
01
Infrastructure Solutions grew 34% and turned profitable for the first full year
02
Services attach reached 28% of enterprise deals, short of the 33% commitment
03
Component costs rose 9% in H2 and were absorbed rather than passed through
04
EMEA lost two points of share after the channel restructure
05
AI PC demand arrived one quarter later than planned and is still building
Growth is structural; the margin pressure is not yet solved.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
2
FINANCIAL PERFORMANCE
Every 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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
3
FINANCIAL PERFORMANCE
Infrastructure 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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
4
Coverage is 3.1x against a 3.5x target.
3.1x
Global pipeline coverage · Target 3.5x
4.2x
Enterprise coverage
2.2x
Mid-market EMEA
Enterprise coverage is healthy; the gap sits entirely in mid-market EMEA.
One segment, in one region, explains the shortfall.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
5
SALES & PIPELINE
Three 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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
6
MARKETING & BRAND
Marketing 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 activation
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
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Fourteen launches, four of them category-defining.
Operations
Weekly OTD, all lanes
Operations
Fourteen 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%.
Operations
Automation line
The portfolio turned over faster than in any prior year.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
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On-time delivery held at 94.6% through two disruptions.
94.6%
On-time delivery · +0.5 pts year on year
11 days
Average lead time
99.1%
Order accuracy
The Osaka carrier change and the Q3 panel shortage were both absorbed without a customer-facing miss above 1%.
Reliability held under real pressure.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
9
SERVICES & SOLUTIONS
Services 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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
10
CUSTOMER SUCCESS
Net revenue retention reached 114%.
Expansion in the installed base offset every loss except two large accounts.
The installed base is growing itself.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
11
REGIONAL PERFORMANCE
Asia 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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
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Americas grew 9% on infrastructure alone.
$21.4B
Americas revenue · +9.1%
104%
Quota attainment
34%
Non-PC share
Device revenue was flat. Every dollar of growth came from infrastructure and services.
The Americas already look like the FY27 target mix.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
13
PEOPLE & CULTURE
Headcount grew 2% while revenue grew 11%.
Growth was concentrated in engineering and services delivery; corporate functions shrank.
The organisation got more technical, not bigger.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
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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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
15
STRATEGIC INITIATIVES
The 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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
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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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
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We are guiding to 8-10% growth and 18.5% gross margin.
8-10%
Revenue growth · Below FY26, above market
18.5%
Gross margin target
35%
Non-PC revenue share
Guidance assumes flat device volumes, continued infrastructure growth and no further component inflation beyond Q2.
Growth slows; quality of revenue improves.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
18
Four priorities, one owner each.
Everything else in the plan is maintenance work and does not need this room's attention.
01
Fix services attach — change seller compensation in Q1 — Sofia Márquez
02
Rebuild EMEA mid-market coverage — Marcus Peel
03
Scale the hybrid AI platform to eight markets — Priya Raman
04
Hold cost per unit flat against component inflation — Kenji Ito
Four priorities, four names, four dates.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
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FY27 OUTLOOK
Two 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.
Lenovo
Lenovo Confidential — Internal Use Only · FY26 Business Review
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