Lenovo Reports a Record Year

Lenovo has reported record financial results for Q4 2021 and full-year 2021, with a net income of $2 billion on revenues of $71.6 billion in the year ending March 31. Those figures represent improvements of 71 percent and 18 percent, year-over-year (YOY).

“Although last year was challenging for the world, with the accelerated global digital and intelligent transformation, Lenovo delivered a record year of profit and revenue,” Lenovo chairman and CEO Yuanqing Yang said. “All our main businesses are now profitable for the full year, and our new growth engines—SSG [Solutions and Services Group], ISG [Infrastructure Solutions Group], and Mobile—are showing strong momentum. We will capture this window of opportunity, double our R&D investment, drive service-led transformation, realize our ESG [environmental, social, and governance] goals, and stay flexible and resilient to bring the entire company to new heights.”

Lenovo was again the number one seller of PCs for the entirety of its fiscal year, and that business saw revenue gains of 30 percent YOY. But the firm is also trying to expand beyond PCs, and it reported that 18 percent of its services revenues were from non-PC devices, including “smart devices, embedded computing/IoT, and scenario-based solutions.” And the revenues from Lenovo’s smartphone business “outgrew the market by 30-points,” while doubling its operating profit to over $360 million, a record since the Motorola acquisition.

Lenovo’s success is particularly impressive given all of the issues it now faces finding components and building its products, not to mention the geopolitical uncertainties and rising inflation. But the firm said that it was able to grow revenue by over $10 billion for the second year in a row.