By Sherry Qin
Lenovo Group is scheduled to report fiscal third-quarter results on Thursday. Here's what you need to know:
NET PROFIT FORECAST: The world's largest maker of personal computers is expected to post a fiscal third-quarter net profit of $470 million, down 32% compared with the same period a year earlier, according to a Factset poll of nine analysts. The net profit in the previous year had been partly boosted by a $282 million nonrecurring income tax credit. Its adjusted net profit likely rose 7.9% on year to $464 million.
REVENUE FORECAST: The PC maker's revenue for the three months ended December was likely $20.79 billion, an 11% increase. Global PC makers have benefited as some demand had been pulled forward to the December quarter as consumers anticipate prices of memory chips will continue increasing, UOB analysts said in a research note. However, there could be more uncertainty ahead as PC makers exhaust their cheaper inventory by the end of the March quarter, the analysts added.
Lenovo's shares dropped 8% in 2025 after shedding 20% in the last quarter of 2025. Skyrocketing memory prices have weighed on investor sentiment with tech industry watcher IDC warning that "the PC market is bracing for disruption."
WHAT TO WATCH:
-- IDC warned that the PC market could shrink up to 8.9% in 2026 due to the surging memory prices while PC vendors with larger shipment volumes could be better positioned to navigate the supply constraints. It estimates average PC selling prices could rise 4%-6% if memory chip prices rise moderately, and by 6% to 8% in a more pessimistic scenario.
-- The current shortage of DRAM could be more detrimental to the development of AI PCs, which require more memory than normal PCs. Lenovo had expected its AI PC shipments to ramp up quickly in the next few years and reach 70%-80% of its total PC shipments by 2027, and investors should watch for any updates on this timeline.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
February 09, 2026 23:52 ET (04:52 GMT)
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