Lenovo Revenues Jump 23 Percent to $17 Billion

Lenovo reported that it earned a net income of $278 million on revenues of $16.9 billion in the quarter ending March 31. Those figures represent gains of 25 percent and 23 percent, respectively, year-over-year. The world’s biggest PC maker also reported a net income of $1.4 billion on revenues of $69 billion for the fiscal year that ended on the same date; those are 36 percent and 21 percent improvements, respectively, over the previous year.

“This has been one of our best years yet, even in the face of significant macroeconomic uncertainty,” Lenovo chairman and CEO Yuanqing Yang said. “We achieved strong top-line growth with all our business groups and sales geographies growing by double digits, and our bottom-line increased even faster. Our strategy to focus on hybrid AI has driven meaningful progress in both personal and enterprise AI, laying a strong foundation for leadership in this AI era. With 20 years of leading a global business and navigating challenges, I’m confident that our operational excellence and continued investment in innovation will not only sustain but strengthen our competitiveness.”

Lenovo said that it expanded its lead in the PC market by one percentage point to approximately 25 percent, vs. roughly 21 percent for HP. The Intelligence Devices Group (IDG) responsible for PCs delivered $50 billion in revenues for the fiscal year, a gain of 13 percent YOY. Better still, its operating margin was “historically high” at 7 percent, with Lenovo claiming “industry-leading profitability.”

Lenovo also noted that AI PC sales exceeded expectations for the year, and that it is now the volume leader globally in Windows AI PCs. IDG will continue building out its “AI-driven applications ecosystem” in the current fiscal year, the firm said, with “seamless cross-device, cross-ecosystem experiences … and AI super agents.”

Lenovo’s Infrastructure Solutions Group (ISG) saw “hyper-growth” of 63 percent YOY in the fiscal year, with a record $14.5 billion in revenues. Operating margins are up, and this business broke even in the second half of the fiscal year. Solutions and Services Group (SSG) added $8.5 billion in revenues (up 13 percent).