The world’s largest PC maker said fourth-quarter revenue rose 27% to $21.6 billion for the period ended March, beating analysts’ expectations of $18.7 billion. Profit attributable to shareholders climbed 479% to $521 million, above forecasts of $271 million.

Its shares jumped 15% on Friday, making it the biggest gainer on Hong Kong’s Hang Seng Index.

Lenovo’s biggest business unit, which covers PCs, tablets and smartphones, recorded a 24% increase in revenue. The company said it was the division’s strongest quarterly growth in five years.

The results came as PC makers are currently dealing with high memory prices and supply shortages. Lenovo had earlier warned that the shortage could affect shipments across the industry. The company has also raised prices on some PCs to manage higher component costs.

“Supply (of memory chips) is in heavy shortage, and the cost is growing faster,” Lenovo Chief Executive Officer Yang Yuanqing told Reuters on Friday.

He added that Lenovo’s wider supplier network, including Chinese memory chip producers, helped reduce pressure on the business.

Chinese memory chipmaker ChangXin Memory Technologies recently identified Lenovo as one of its major customers in a prospectus filing. The chipmaker also reported more than 700% growth in first-quarter revenue as memory prices surged.

According to forecasts, memory chip prices doubled in the first quarter and could rise by as much as 63% this quarter. Demand from data centres has tightened supply for laptops, smartphones and cars.

Lenovo said its PC shipment growth outpaced the market by nearly six percentage points during the quarter. Research firm Counterpoint Research said global PC shipments rose 3.2% in the first quarter to 63.3 million units, while Lenovo’s shipments increased 9% to 16.5 million units. That gave the company a 26% share of the global market.

The company is also expanding its server business. Lenovo said its infrastructure solutions group, which includes its server operations, posted 37% revenue growth in the quarter, the fastest among all its business units.

It added that its server order pipeline had reached $21 billion as demand for data centre equipment continued to grow.

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The world’s largest PC maker earned $90 million in net profit for the quarter ending 31 March. Analysts had projected more than double that figure, with expectations set at roughly $225 million.

Nonetheless, revenue surged to $16.98 billion, surpassing the $15.6 billion target set by analysts. The increase, driven largely by sales in personal devices and infrastructure solutions, provided a brief reprieve from the pressure weighing on the company.

We can see that Lenovo’s financial picture is complicated. On the one hand, there’s rapid growth: server-related revenue rose 64% year-on-year, while cloud service offerings grew 22%, pulling in $2.2 billion. 

On the other hand, profitability is being dragged down by losses on financial instruments and narrowing margins in its infrastructure business.

The company’s ability to stay competitive globally is being tested by trade risks, especially with the United States. As a business that depends heavily on Chinese manufacturing while generating more than a third of its revenue from the Americas, Lenovo finds itself in a delicate position.

PC shipments grew 11% in the first quarter of 2025, according to market researcher IDC. The increase was driven in part by businesses and consumers rushing to place orders ahead of incoming U.S. tariffs on Chinese goods. That urgency might not last.

“The uncertainty surrounding U.S. tariffs and associated inflationary pressure could hurt PC demand in the subsequent quarters of 2025,” IDC warned in its report. 

Citi analysts also noted that price adjustments on consumer products may be speedy, but renegotiating contracts on commercial systems, which account for nearly 70% of U.S. sales, will take time.

Lenovo’s recent launch of AI-integrated PCs helped lift its smartphone and tablet business. CEO Yang Yuanqing sees this shift as key to the company’s next phase. “This has been one of our best years yet, even in the face of significant macroeconomic uncertainty,” he said.

Annual revenue hit $69.08 billion, the second-highest in Lenovo’s history, while full-year profit rose 37%. Still, its Hong Kong-listed shares dropped more than 2% after the results were released, another reminder that investors are watching profit margins more closely than sales figures.

The firm insists it’s prepared for whatever comes next. “Our global manufacturing footprint and diverse supply chain give the group maximum flexibility and resilience to navigate through uncertainties,” Lenovo stated.

But flexibility has its limits. Analysts agree that the company’s exposure to tariff-related shocks could continue to disrupt both short-term performance and long-term planning.

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