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Lenovo Group: Third Quarter Financial Results 2024/25

Feb 20, 2025 - financialpost.com
Lenovo Group Limited reported strong financial results for the third quarter of fiscal year 2024/25, with a 20% year-on-year increase in revenue to US$18.8 billion and a more than doubling of net income to US$693 million. The growth was driven by the company's hybrid-AI strategy, the turnaround of the Infrastructure Solutions Group, and double-digit growth in both the Intelligent Devices Group and Solutions and Services Group. Lenovo's non-PC revenue mix increased to 46%, and the company continues to invest in R&D, with expenses up 14% to US$621 million. The company launched several innovative products at CES 2025, including the world's first rollable AI laptop and a handheld gaming device.

Lenovo's Intelligent Devices Group saw a 12% revenue increase, maintaining its market leadership in PCs and experiencing strong smartphone growth. The Infrastructure Solutions Group achieved break-even with a 60% revenue increase, driven by cloud services and AI server business. The Solutions and Services Group reported record revenue and high profitability, with a focus on AI-powered solutions. Lenovo's strategic partnerships and expansion in the Middle East are expected to support continued growth and profitability. The company remains optimistic about its future, emphasizing its commitment to innovation and a resilient global supply chain.

Key takeaways:

  • Lenovo Group reported a 20% year-on-year revenue growth to US$18.8 billion for Q3 FY 2024/25, with net income more than doubling to US$693 million.
  • The company's diversified growth engines, including the Intelligent Devices Group and Solutions and Services Group, contributed to the strong performance, driven by a hybrid-AI strategy.
  • Lenovo's R&D expenses increased by nearly 14% year-on-year, focusing on AI innovations, including the launch of the world's first rollable AI laptop and handheld gaming device.
  • Lenovo was named FIFA's official technology partner and received several ESG and Corporate Governance awards, highlighting its commitment to sustainability and innovation.
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