Lenovo Group (LNVGY)
OTHER OTC:LNVGY
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Lenovo Group
(OTC:LNVGY)
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Rating:67Neutral
Price Target:
$66.00
▲(164.85% Upside)
Action:Downgraded
Date:05/30/26
The score is driven primarily by improving (but still low-margin) financial performance and a strong, optimistic earnings outlook tied to AI and ISG momentum. Technicals support the uptrend but are extremely overbought, and valuation/dividend metrics are only moderate, limiting the overall rating.
Positive Factors
AI-driven revenue mix
A large and rapidly growing AI revenue stream (38% of quarterly sales; double‑digit YoY AI growth) represents a structural shift toward higher‑value products and solutions. This durable mix change supports premiumization, recurring service attach, and diversification away from pure PC cycles, aiding long‑term revenue and margin expansion.
Negative Factors
Thin overall margins
Despite recent improvement, aggregate margins remain low for the hardware sector, leaving little buffer against cost inflation or pricing pressure. This structural thinness constrains retained earnings and limits flexibility to absorb higher BOM or R&D costs without material impact to net income and returns on capital.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-driven revenue mix
A large and rapidly growing AI revenue stream (38% of quarterly sales; double‑digit YoY AI growth) represents a structural shift toward higher‑value products and solutions. This durable mix change supports premiumization, recurring service attach, and diversification away from pure PC cycles, aiding long‑term revenue and margin expansion.
Read all positive factors
Lenovo Group (LNVGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.15B
Dividend Yield4.03%
Average Volume (3M)14.55K
Price to Earnings (P/E)20.7
Beta (1Y)0.72
Revenue Growth20.20%
EPS Growth38.40%
CountryUS
Employees69,500
SectorTechnology
Sector Strength88
IndustryComputer Hardware
Share Statistics
EPS (TTM)3.13
Shares Outstanding620,233,000
10 Day Avg. Volume21,040
30 Day Avg. Volume14,555
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)1.92
Price to Sales (P/S)0.18
P/FCF Ratio5.09
Enterprise Value/Market Cap1.01
Enterprise Value/Revenue0.38
Enterprise Value/Gross Profit2.52
Enterprise Value/Ebitda7.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.69
Revenue Forecast (FY)$92.33B
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 primarily makes money by selling hardware products and related solutions across three main business groups: (1) Intelligent Devices Group (IDG), which generates revenue mainly from shipments of PCs (laptops, desktops, and workstations) and ...
Lenovo Group Earnings Call Summary
Earnings Call Date:May 21, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Aug 13, 2026
Earnings Call Sentiment Positive
The call emphasized multiple sizable operational and financial wins — record quarterly and full‑year revenues, strong margin and adjusted profit expansion, clear AI acceleration across devices, infrastructure and services, ISG’s turnaround with a large AI pipeline, and material progress in premiumization and recurring services. The primary negatives were ongoing supply‑chain constraints, rising component costs, demand outpacing supply for AI infrastructure, and the need for incremental CapEx to scale ISG. On balance, the positive results, breadth of growth across business groups, and strong AI momentum outweigh the risks cited.Positive Updates
Record Quarterly Revenue and Strong Q4 Growth
Group Q4 revenue of $21.6B, up 27% year‑on‑year (the highest YoY growth in the last 5 years).
Negative Updates
Supply Shortages and Rising Component Costs
Management flagged ongoing semiconductor (CPU/memory) tightness and rising BOM costs which pressured unit shipments; they expect units to be down YoY for the fiscal year despite revenue growth from higher AUR (average unit revenue).
Read all updates
Q4-2026 Updates
Positive
Negative
Record Quarterly Revenue and Strong Q4 Growth
Group Q4 revenue of $21.6B, up 27% year‑on‑year (the highest YoY growth in the last 5 years).
Read all positive updates
Company Guidance
Management guided aggressively toward a $100 billion revenue target in two years with continued margin expansion driven by higher R&D (R&D spend +9% YoY) and targeted ISG investment, while operational priorities include deploying personal AI super‑agents (Tianxi & QIRA) to “millions” of devices, launching next‑gen AI‑native PCs/phones/wearables, and scaling TruScale and SSG to drive recurring revenue; they said TruScale can shorten time‑to‑ROI to <6 months and deliver production‑ready AI environments in as little as 90 days, Rubin‑based platforms aim for up to 10x lower cost per token, and ISG is being built for sustained profitable growth from a $21 billion AI server pipeline with >5,800 AI customer deployments (Q4 ISG rev $5.6B, +37% YoY; Q4 ISG op profit $202M; FY ISG rev $19.2B, +32% YoY). Management also expects to maintain or grow revenue despite unit declines via premiumization (higher AUR), continue outpacing the PC market (~+6 percentage points), and pursue sustainability/long‑term targets (net zero by 2050; 90% renewable electricity to date; recycled materials in 100% of PCs), while signaling ongoing shareholder returns (FY dividend HKD 0.422/share).Lenovo Group Financial Statement Overview
Summary
Income Statement
71
Positive
Balance Sheet
67
Positive
Cash Flow
58
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 83.04B | 69.08B | 56.86B | 61.95B | 71.62B |
| Gross Profit | 12.80B | 11.10B | 9.80B | 10.50B | 12.05B |
| EBITDA | 4.59B | 3.67B | 3.54B | 3.80B | 4.29B |
| Net Income | 1.91B | 1.38B | 1.01B | 1.61B | 2.03B |
Balance Sheet | |||||
| Total Assets | 57.13B | 44.23B | 38.75B | 38.92B | 44.51B |
| Cash, Cash Equivalents and Short-Term Investments | 4.98B | 4.76B | 3.57B | 4.32B | 3.96B |
| Total Debt | 5.16B | 5.73B | 3.96B | 4.36B | 5.93B |
| Total Liabilities | 48.55B | 37.57B | 32.67B | 32.87B | 39.12B |
| Stockholders Equity | 7.64B | 6.07B | 5.58B | 5.59B | 4.99B |
Cash Flow | |||||
| Free Cash Flow | 2.88B | -51.33M | 725.09M | 1.22B | 2.79B |
| Operating Cash Flow | 4.14B | 1.10B | 2.01B | 2.80B | 4.08B |
| Investing Cash Flow | -1.94B | -1.06B | -1.28B | -1.92B | -1.50B |
| Financing Cash Flow | -2.08B | 1.19B | -1.34B | -413.78M | -1.76B |
Lenovo Group Technical Analysis
Positive
24.92
Price Trends
30.42
Positive
26.99
Positive
27.27
Positive
Market Momentum
5.85
Negative
93.35
Negative
100.01
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 below the 20-day moving average (MA) of 36.42, below the 50-day MA of 30.42, and below the 200-day MA of 27.27, indicating a bullish trend. The MACD of 5.85 indicates Negative momentum. The RSI at 93.35 is Negative, neither overbought nor oversold. The STOCH value of 100.01 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 |
|---|---|---|---|---|---|---|---|
82 Outperform | $183.09B | 28.26 | 91.94% | 0.18% | -18.43% | 242.76% | |
75 Outperform | $28.10B | 26.91 | 114.18% | 1.89% | 5.28% | 10.66% | |
68 Neutral | $206.85B | 32.52 | -363.24% | 1.45% | 38.86% | ― | |
67 Neutral | $31.15B | 20.67 | 27.61% | 4.03% | 20.20% | 38.40% | |
66 Neutral | $22.87B | 9.77 | 169.24% | 5.09% | 7.20% | 4.12% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $24.84B | 22.09 | 18.21% | ― | 56.58% | 1.94% |
* Technology Sector Average
LNVGY
Lenovo Group
61.25
39.04
175.83%
HPQ
HP
27.04
3.34
14.09%
NTAP
NetApp
174.29
77.01
79.17%
SMCI
Super Micro Computer
46.09
6.07
15.17%
WDC
Western Digital
531.21
479.88
934.93%
DELL
Dell Technologies
420.91
311.31
284.03%
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.