Lenovo Revenues Surge, PC Sales Expected to Grow Faster

Lenovo reported a net income of $359 million on revenues of $17.85 billion in the quarter ending September 30. Those figures represent gains of 44 percent and 24 percent year-over-year (YOY), respectively. And while the firm’s PC sales grew only 3 percent YOY in the quarter, Lenovo revised its prediction for full-year 2025 and now expects to see double-digit PC sales growth, thanks to the demand for AI PCs.

“Last quarter, we achieved strong, sustainable, and accelerated growth, marking another period of revenue expansion across all business groups,” Lenovo chairman and CEO Yuanqing Yang said. “This significant momentum is driven by our clear strategy, innovation investment, operational excellence, and global presence, as well as our commitment to hybrid AI, where we are further strengthening our market differentiation and industry leadership. As we look ahead, we are confident that our ongoing innovation advancements in hybrid AI will continue to accelerate growth and profitability, propelling us forward for the rest of the fiscal year.”

Lenovo’s success appears to be tied to sales in its native China: It launched its first AI PCs there in recent months, and says that China-based notebook shipments are already growing by double-digits.

Globally, it’s a bit less dramatic. Lenovo retained its leadership of the PC market, with an estimated 24 percent of all PCs sold worldwide in the quarter, a gain of 2 percentage points over the number two company, HP.  Revenues from Lenovo’s Intelligent Devices (IDG), which produces those PCs, jumped 17 percent YOY to $13.5 billion, though unit sales grew just 3 percent. That said, rivals like Apple and Dell saw PC sales declines in the quarter.

And Lenovo now sees stronger-than-expected sales in the quarters ahead, so it’s revised its PC unit sales growth prediction from the single digits (5 to 10 percent) to the double digits (10 to 15 percent growth). It credits surging sales of AI PCs and a coming Windows 11 replacement cycle for the shift.

“The PC market is expected to steadily recover and enter a new refresh cycle driven by AI PCs, gradually growing to represent around 80 percent of the PC industry landscape by 2027,” Lenovo noted in its earnings release. “IDG will continue to leverage its five-feature AI PCs to establish leadership in the AI PC market, while at the same time building a richer AI device portfolio.”