• Lenovo's earnings per share (EPS) of $0.02 fell short of the estimated $0.03, while revenue of $20.45 billion surpassed expectations.
• The company's revenue boost was attributed to the global adoption of Windows 11 and an expanding server business, amidst the artificial intelligence boom.
• Despite a 5% decline in second-quarter profit, Lenovo's adjusted net income rose by 25% year-on-year to $512 million, with an adjusted net income margin of 2.5%.

On November 19, 2025, Lenovo Group Limited (PNK:LNVGF), reported its earnings, revealing an earnings per share (EPS) of $0.02, which fell short of the estimated $0.03. Despite this, Lenovo generated a revenue of approximately $20.45 billion, surpassing the estimated $20.20 billion.

Lenovo's quarterly revenue saw a significant boost, driven by the global adoption of Windows 11 and the company's expanding server business. This growth is largely due to the ongoing artificial intelligence boom, which has increased demand for Lenovo's products and services. As the world's largest PC maker, Lenovo is leveraging these trends to strengthen its market position and financial performance.

Despite the revenue increase, Lenovo announced a 5% decline in its second-quarter profit, highlighting the challenges it faces in maintaining profitability in a competitive market. However, the company's overall group revenue soared to a record $20.5 billion, marking a 15% increase compared to the previous year. Lenovo's adjusted net income also rose by 25% year-on-year, reaching $512 million, with an adjusted net income margin of 2.5%.

Lenovo's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 10.39, indicating the market's valuation of its earnings. Its price-to-sales ratio stands at about 0.21, suggesting a relatively low market valuation compared to its sales. The enterprise value to sales ratio is around 0.22, reflecting the company's total valuation in relation to its revenue.

The enterprise value to operating cash flow ratio is approximately 9.71, showing how the market values Lenovo's cash flow. The earnings yield is about 9.63%, offering insight into the return on investment for shareholders. With a debt-to-equity ratio of approximately 0.72, Lenovo maintains a moderate level of debt compared to equity. The current ratio is around 0.95, indicating the company's ability to cover its short-term liabilities with its short-term assets.