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Lenovo Group (LNVGY)
OTHER OTC:LNVGY
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Lenovo Group
(OTC:LNVGY)
Rating:76Outperform
Price Target:
$32.00
▲(13.39% Upside)
Lenovo Group (LNVGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.92B
Dividend Yield3.43%
Average Volume (3M)26.37K
Price to Earnings (P/E)10.3
Beta (1Y)0.54
Revenue Growth21.95%
EPS Growth50.97%
CountryUS
Employees69,500
SectorTechnology
Sector Strength83
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.73
Shares Outstanding620,233,000
10 Day Avg. Volume1,661
30 Day Avg. Volume26,366
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit1.66
Enterprise Value/Ebitda5.49
Forecast
1Y Price Target
$32.00Price Target Upside13.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Lenovo Group Business Overview & Revenue Model
Company DescriptionLenovo Group Limited is a multinational technology company based in China, primarily known for designing, manufacturing, and selling a wide range of computing products and solutions. The company operates through several business segments, including Intelligent Devices Group (IDG), which encompasses PCs, tablets, and smartphones; Data Center Group (DCG), focusing on servers and storage solutions; and Software and Services. Lenovo is recognized for its innovative products such as the ThinkPad laptops and Legion gaming PCs, catering to both consumer and enterprise markets.
How the Company Makes MoneyLenovo generates revenue through multiple streams, primarily by selling hardware products, including personal computers, tablets, smartphones, and servers. The Intelligent Devices Group (IDG) is the largest contributor to its revenue, driven by sales of PCs and associated peripherals. Additionally, the Data Center Group (DCG) contributes significantly by providing enterprise solutions, including storage, networking, and cloud services. Lenovo also offers value-added services such as software solutions, support, and warranty services, which enhance its revenue model. Strategic partnerships with major companies like Intel and Microsoft enable Lenovo to integrate advanced technologies into its products, fostering innovation and driving sales. Furthermore, the growing demand for remote work and digital transformation solutions has positively impacted its earnings, making Lenovo a key player in the global technology landscape.
Lenovo Group Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
Lenovo demonstrated strong financial performance with record-breaking revenue and market share growth, particularly in the PC and ISG segments. However, challenges such as tariff volatility and ISG profitability issues were noted. The company remains confident in its strategic investments and technological advancements.Q1-2026 Updates
Positive Updates
Record-Breaking Revenue and Growth
Lenovo achieved a record high first quarter revenue of USD 18.8 billion, marking a 22% year-on-year increase. Net income on a non-Hong Kong FRS basis also increased by 22% year-on-year, and on a Hong Kong FRS basis, net income more than doubled year-on-year to over USD 500 million.
PC Business Performance
The PC business delivered over 20% revenue growth, the fastest pace in 15 quarters, with a record high global market share of 24.6%. AI PC penetration now accounts for more than 30% of Lenovo's total PC shipments.
Infrastructure Solutions Group (ISG) Growth
ISG delivered a 36% year-on-year revenue growth. The AI infrastructure business doubled its revenue year-on-year, and revenue from liquid cooling solutions grew 30% year-on-year.
Solutions & Services Group (SSG) Success
SSG achieved a record high quarterly revenue, growing 20% year-on-year with more than 22% operating margin. Managed Services and Projects & Solutions businesses drove their combined mix to nearly 60% of SSG's total revenue.
Strong Global Market Performance
Revenue in the PRC surged by 36% year-on-year. In the Americas, PC market share gains were noted for the ninth consecutive quarter, and in EMEA, record bookings in Device-as-a-Service and software solutions were achieved.
Negative Updates
Impact of Tariff Volatility
Despite the record-breaking results, the earnings call acknowledged challenges with tariff volatility and geopolitical landscape, which necessitated Lenovo's unique ODM+ model to mitigate.
ISG Profitability Challenges
ISG recorded an operating loss of USD 86 million in the first fiscal quarter due to strategic investments to enhance long-term AI capabilities and transformation of the ESMB business.
R&D Investment Growth Deceleration
R&D investment growth decelerated over the last two quarters to 10% growth, raising concerns about future innovation pace.
Company Guidance
During the earnings call, Lenovo reported robust financial performance for the first quarter of the fiscal year 2025/2026, with a record group revenue of USD 18.8 billion, marking a 22% year-on-year increase. The net income on a non-Hong Kong FRS basis rose by 22% year-on-year, while on a Hong Kong FRS basis, it more than doubled, reaching USD 505 million. Lenovo's business segments experienced significant growth, with the Intelligent Device Group (IDG) achieving a revenue of USD 13.5 billion, up 18% year-on-year, and the Infrastructure Solutions Group (ISG) growing by 36% to USD 4.3 billion. The Solutions & Services Group (SSG) also delivered a record revenue, growing 20% year-on-year with a 22% operating margin. The company emphasized its strategic focus on AI, with AI-driven revenue growing significantly and AI PC penetration exceeding 30% of total PC shipments. R&D spending increased by 10% year-on-year to USD 524 million, reinforcing Lenovo's commitment to innovation and its hybrid AI strategy.Lenovo Group Financial Statement Overview
Summary
Lenovo Group shows strong financial health with positive revenue and profit growth, supported by robust gross profit margins. The balance sheet is stable but requires attention to debt management. Cash flow highlights some liquidity challenges, emphasizing the need for improved free cash flow generation.Income Statement
Lenovo Group shows a strong income statement performance. The company has demonstrated positive revenue growth over the years, with a significant increase from 2024 to 2025. The gross profit margin remains robust, indicating efficient cost management. However, the net profit margin is relatively moderate, suggesting room for improvement in operational efficiency. The EBIT and EBITDA margins are stable, reflecting consistent operational performance.78
Positive
Balance Sheet
Lenovo's balance sheet reflects a balanced financial position with a manageable debt-to-equity ratio. The company's total assets have grown steadily, and stockholder's equity has increased, contributing to a moderate equity ratio. However, the total debt level is relatively high, which could pose a risk in economic downturns. Overall, the company maintains a stable financial position, but careful monitoring of debt levels is advisable.70
Positive
Cash Flow
The cash flow statement reveals mixed results for Lenovo. The operating cash flow has seen fluctuations, with a notable decrease in 2025. The free cash flow has been inconsistent, highlighting potential challenges in maintaining liquidity. The operating cash flow to net income ratio is healthy, suggesting good cash generation from operations. However, negative free cash flow in the latest period indicates pressure on cash reserves, which may need addressing.65
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 72.44B | 69.08B | 56.86B | 61.95B | 71.62B | 60.74B |
| Gross Profit | 11.16B | 11.10B | 9.80B | 10.50B | 12.05B | 9.77B |
| EBITDA | 3.38B | 3.67B | 3.56B | 4.15B | 4.38B | 3.25B |
| Net Income | 1.65B | 1.38B | 1.01B | 1.61B | 2.03B | 1.21B |
Balance Sheet | ||||||
| Total Assets | 46.32B | 44.23B | 38.75B | 38.92B | 44.51B | 37.99B |
| Cash, Cash Equivalents and Short-Term Investments | 4.59B | 4.76B | 3.57B | 4.32B | 3.96B | 3.13B |
| Total Debt | 4.82B | 5.73B | 3.96B | 4.36B | 5.93B | 4.42B |
| Total Liabilities | 38.77B | 37.57B | 32.67B | 32.87B | 39.12B | 34.38B |
| Stockholders Equity | 6.81B | 6.07B | 5.58B | 5.59B | 4.99B | 3.56B |
Cash Flow | ||||||
| Free Cash Flow | 866.03M | -51.33M | 725.09M | 1.22B | 2.79B | 2.81B |
| Operating Cash Flow | 1.55B | 1.10B | 2.01B | 2.80B | 4.08B | 3.65B |
| Investing Cash Flow | -1.17B | -1.06B | -1.28B | -1.92B | -1.50B | -975.90M |
| Financing Cash Flow | 136.84M | 1.19B | -1.34B | -413.78M | -1.76B | -3.23B |
Lenovo Group Technical Analysis
Positive
28.22
Price Trends
26.31
Positive
24.52
Positive
25.14
Positive
Market Momentum
0.43
Positive
55.07
Neutral
24.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LNVGY, the sentiment is Positive. The current price of 28.22 is above the 20-day moving average (MA) of 28.20, above the 50-day MA of 26.31, and above the 200-day MA of 25.14, indicating a bullish trend. The MACD of 0.43 indicates Positive momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 24.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNVGY.
Lenovo Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $16.92B | 10.34 | 26.61% | 3.43% | 21.95% | 50.97% | |
74 Outperform | $23.72B | 20.58 | 123.00% | 1.75% | 3.45% | 9.69% | |
74 Outperform | $31.39B | 17.83 | 25.98% | 0.22% | 2.12% | ― | |
73 Outperform | $27.03B | 10.52 | 84.33% | 3.90% | 3.11% | -3.54% | |
67 Neutral | $24.19B | 24.52 | 17.90% | ― | 47.04% | -17.89% | |
64 Neutral | $85.99B | 18.23 | -179.12% | 1.55% | 10.50% | ― | |
61 Neutral | $35.52B | 8.84 | -11.06% | 1.87% | 8.55% | -8.14% |
* Technology Sector Average
Performance Comparison
LNVGY
Lenovo Group
28.22
5.23
22.75%
HPQ
HP
29.34
-3.21
-9.86%
NTAP
NetApp
118.75
6.83
6.10%
SMCI
Super Micro Computer
40.41
1.76
4.55%
WDC
Western Digital
92.04
46.26
101.05%
DELL
Dell Technologies
124.83
24.65
24.61%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.