For more than 20 years, many of us have known Lenovo as a trusted hardware provider. However, the Q2 2025/26 results demonstrate a "hidden gem" within the organization that is quietly redefining the company’s core: the Solutions and Services Group (SSG).
"Capitalizing on the AI democratization trend, and thanks to our clear strategy, operational excellence and relentless innovation, Lenovo delivered another quarter of record performance, while making important progress in both Personal AI and Enterprise AI."
— Yuanqing Yang, Chairman and CEO of Lenovo
What is SSG, and What Does It Do?
SSG consolidates Lenovo's IT solutions across PCs, infrastructure, and smart verticals into a single organization. It represents the pivot from selling products to managing the entire technology lifecycle. Its primary mission is to help organizations transition to a "labor-light, AI-first" model through three core pillars:
- TruScale (Everything-as-a-Service): A pay-as-you-go model that allows CIOs to scale AI infrastructure and devices without massive upfront CapEx.
- Agentic AI: Deploying autonomous AI agents at enterprise scale to unify workflows and automate decisions.
- Digital Workplace Solutions (DWS): Managing hybrid workforces end-to-end with high-growth sectors growing at 2X the addressable market.
"The way organizations measure innovation is changing, and today's leaders are looking beyond technology to focus on value, trust, and transformation... AI-nomics is a framework for aligning AI investments with measurable business outcomes."
— Patricia Wilkey, SVP and GM, International Sales, Lenovo SSG
The Customer Signal: Moving to Production
The acceleration in SSG revenue is being driven by a clear customer signal: enterprises are moving from AI experimentation to full-scale production. This shift is particularly visible in focused vertical industries:
- Manufacturing and Retail: Utilizing targeted AI solutions to drive operational efficiency and cost optimization.
- Hybrid Cloud: Capitalizing on market tailwinds as organizations prioritize flexibility and scalability.
The Results: A 18-Quarter Growth Streak
The numbers speak to the success of this services-led approach. SSG delivered US$2.6 billion in revenue this quarter, marking 18 consecutive quarters of double-digit growth. More importantly, it maintains an impressive 22.3% operating margin—significantly higher than traditional hardware cycles.
The "Operator-Analyst" Takeaway
The companies we think we know are often reinventing themselves beneath the surface. With managed services and project solutions now representing nearly 60% of SSG’s revenue, Lenovo is proving that the hardware is just the foundation for a much larger narrative: the industrialization of AI.
As organizations navigate the next five years of strategy, the focus must move beyond IT capabilities toward practical implementation friction. Lenovo's shift suggests that the future belongs to those who can translate technical potential into sustainable revenue reality.
Works Cited
Lenovo Group. "Lenovo Delivers Record Quarterly Results, Marking Significant Progress in Hybrid AI." Lenovo StoryHub, 20 Nov. 2025, https://news.lenovo.com/pressroom/press-releases/q2-fy-2025-26/.
Wilkey, Patricia. "Defining the Business Value of AI-nomics." YouTube, 5 Feb. 2026, https://www.youtube.com/watch?v=VInqj45j_Ks.