Lenovo Group (LNVGY)
OTHER OTC:LNVGY
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Lenovo Group
(OTC:LNVGY)
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Rating:68Neutral
Price Target:
$26.00
▲(4.33% Upside)
Action:DowngradedDate:02/18/26
The score is driven primarily by moderate financial quality (thin margins and historically uneven cash flow despite positive TTM growth and manageable leverage). Valuation is a key positive (low P/E and ~4.1% yield), and the latest earnings call supports the outlook with strong AI-led growth and cost actions, while technicals remain mixed with the stock still below longer-term moving averages.
Positive Factors
AI-driven revenue growth
Rapid AI revenue growth to roughly one-third of total revenue represents a structural diversification away from cyclical PC cycles. Over 2–6 months this supports durable demand across devices, services and infrastructure, enabling higher growth opportunities and long-term ecosystem monetization.
Negative Factors
Thin net margins & volatile cash flow
Structurally low net margins and historically uneven free cash flow reduce the firm's buffer to absorb cost shocks and fund investment. Over months this limits reinvestment flexibility, increases sensitivity to margin pressure, and makes sustained R&D or capex without leverage more challenging.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-driven revenue growth
Rapid AI revenue growth to roughly one-third of total revenue represents a structural diversification away from cyclical PC cycles. Over 2–6 months this supports durable demand across devices, services and infrastructure, enabling higher growth opportunities and long-term ecosystem monetization.
Read all positive factors
Lenovo Group (LNVGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.03B
Dividend Yield4.03%
Average Volume (3M)17.06K
Price to Earnings (P/E)6.7
Beta (1Y)0.53
Revenue Growth19.41%
EPS Growth36.65%
CountryUS
Employees69,500
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)0.78
Shares Outstanding620,233,000
10 Day Avg. Volume24,522
30 Day Avg. Volume17,064
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)2.72
Price to Sales (P/S)0.24
P/FCF Ratio-322.05
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.21
Enterprise Value/Gross Profit1.38
Enterprise Value/Ebitda4.36
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.77
Revenue Forecast (FY)$87.14B
Lenovo Group Business Overview & Revenue Model
Company Description
Lenovo Group Limited, an investment holding company, develops, manufactures, and markets technology products and services. It operates through Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group segments. Th...
How the Company Makes Money
Lenovo generates revenue primarily through the sale of hardware products, including PCs, tablets, smartphones, and data center equipment. The company has a diverse revenue model that includes direct sales to consumers, business-to-business (B2B) s...
Lenovo Group Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive tone: strong, broad‑based revenue growth, record quarter results across groups, rapid AI revenue expansion (~72% YoY to ~32% of revenue), market leadership in PCs, significant product and ecosystem launches, and clear operational plans (including >$200M annualized ISG savings) to capture AI demand. Notable headwinds include acute memory and silicon cost inflation, supply constraints, a $285M one‑time restructuring charge, modest adjusted net margin (2.7%), and management modeling unit declines for PCs and mobile. Overall, the positives — record revenues, expanding profitability, AI momentum and structural cost actions — materially outweigh the lowlights, which are being actively managed.Positive Updates
Record Group Revenue and Accelerating Profitability
Revenue reached a record $22.2 billion, up 18% year‑on‑year. Adjusted operating income was $903 million, up 28% YoY. Adjusted net income rose to $589 million and, excluding one‑time items, adjusted net income expanded 36% YoY, demonstrating operating leverage and improved profitability.
Negative Updates
Sharp Component Cost Inflation and Supply Constraints
Memory pricing pressures were acute: DRAM costs reportedly rose ~50% in one quarter and then increased further the following quarter. Company cited rising memory and certain silicon costs and ongoing supply shortages, which are expected to put pressure on unit demand and margins.
Read all updates
Q3-2026 Updates
Positive
Negative
Record Group Revenue and Accelerating Profitability
Revenue reached a record $22.2 billion, up 18% year‑on‑year. Adjusted operating income was $903 million, up 28% YoY. Adjusted net income rose to $589 million and, excluding one‑time items, adjusted net income expanded 36% YoY, demonstrating operating leverage and improved profitability.
Read all positive updates
Company Guidance
Management guided a confident near‑term outlook: Q3 fiscal results included revenue of $22.2B (+18% YoY), adjusted operating income $903M (+28% YoY), adjusted net income $589M (adjusted net margin 2.7%), and AI‑related revenue up ~72% YoY now ~32% of group; they expect continued double‑digit growth across businesses with IDG at ~$16B (+14% YoY) (PC revenue +17%, global PC share 25.3%, PC volume outpacing the market for 10 quarters) even as they model mid‑single‑digit unit declines offset by mid‑single‑digit ASP gains, mobile market a high‑single‑digit unit decline but premium‑led revenue growth, and ISG (Q revenue $5.2B, +31% YoY) moving to profitability potentially as early as next quarter after a $285M one‑time restructuring charge that targets >$200M annualized savings over 3 years (AI server pipeline $15.5B; Neptune cooling revenue +300% YoY); management also reaffirmed product ramps (Qira devices shipping next quarter) and continued execution to sustain revenue and margin expansion.Lenovo Group Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 78.43B | 69.08B | 56.86B | 61.95B | 71.62B | 60.74B |
| Gross Profit | 11.74B | 11.10B | 9.80B | 10.50B | 12.05B | 9.77B |
| EBITDA | 3.71B | 3.67B | 3.54B | 3.80B | 4.29B | 3.10B |
| Net Income | 1.48B | 1.38B | 1.01B | 1.61B | 2.03B | 1.21B |
Balance Sheet | ||||||
| Total Assets | 52.63B | 44.23B | 38.75B | 38.92B | 44.51B | 37.99B |
| Cash, Cash Equivalents and Short-Term Investments | 5.33B | 4.76B | 3.57B | 4.32B | 3.96B | 3.13B |
| Total Debt | 5.38B | 5.73B | 3.96B | 4.36B | 5.93B | 4.42B |
| Total Liabilities | 44.66B | 37.57B | 32.67B | 32.87B | 39.12B | 34.38B |
| Stockholders Equity | 7.07B | 6.07B | 5.58B | 5.59B | 4.99B | 3.56B |
Cash Flow | ||||||
| Free Cash Flow | 1.72B | -51.33M | 725.09M | 1.22B | 2.79B | 2.81B |
| Operating Cash Flow | 2.78B | 1.10B | 2.01B | 2.80B | 4.08B | 3.65B |
| Investing Cash Flow | -1.58B | -1.06B | -1.28B | -1.92B | -1.50B | -975.90M |
| Financing Cash Flow | 5.36M | 1.19B | -1.34B | -413.78M | -1.76B | -3.23B |
Lenovo Group Technical Analysis
Positive
24.92
Price Trends
23.89
Positive
24.11
Positive
25.84
Positive
Market Momentum
0.27
Negative
65.17
Neutral
100.08
Negative
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 24.92 is above the 20-day moving average (MA) of 24.15, above the 50-day MA of 23.89, and below the 200-day MA of 25.84, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 65.17 is Neutral, neither overbought nor oversold. The STOCH value of 100.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LNVGY.
Lenovo Group Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $114.86B | 8.79 | 64.18% | 0.18% | -16.35% | 316.56% | |
70 Outperform | $119.77B | 12.78 | -218.24% | 1.45% | 19.12% | 39.59% | |
68 Neutral | $16.03B | 6.68 | 23.18% | 4.03% | 19.41% | 36.65% | |
64 Neutral | $19.63B | 14.44 | 116.57% | 1.89% | 2.64% | 4.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $14.00B | 10.90 | 13.33% | ― | 12.22% | -48.34% | |
57 Neutral | $17.28B | 8.26 | 1135.29% | 5.09% | 4.09% | -5.77% |
* Technology Sector Average
LNVGY
Lenovo Group
25.85
7.22
38.78%
HPQ
HP
18.89
-4.22
-18.26%
NTAP
NetApp
99.47
15.00
17.76%
SMCI
Super Micro Computer
23.37
-13.34
-36.34%
WDC
Western Digital
338.78
302.64
837.33%
DELL
Dell Technologies
185.47
102.82
124.39%
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.