Lenovo Revenues Up 27 Percent to $21.6 Billion

Lenovo reported that it earned a net income of $521 million on revenues of $21.6 billion in the quarter ending March 31. Those figures represent gains of 479 percent and 27 percent, respectively, year-over-year (YOY).

Lenovo also reported its full fiscal year 2025 results, with a net income of $1.9 billion on revenues of $83 percent. Those are 38 percent and 20 percent gains, respectively, YOY. The company described the year as its “strongest in history.”

“Lenovo concluded its best year ever with an exceptional fourth quarter, where we delivered on our promises,” Lenovo chairman and CEO Yuanqing Yang said. “We returned our Infrastructure Solutions Group to a sustainable and profitable growth trajectory and achieved hyper-growth by capturing the opportunity of the booming AI infrastructure market. Through firm execution of our Hybrid AI strategy, we are uniquely positioned to lead in the new wave of AI inferencing and democratization. With strong momentum across all our businesses, we are confident in our ambition to become a US$100 billion company within the next two years, while continuing to deliver strong returns for our shareholders.”

Lenovo’s Intelligent Devices Group (IDG) is responsible for PC and smart devices, and it was once again the company’s largest business unit with $14.6 billion in revenues in the quarter, a gain of 26 percent YOY. That’s the group’s strongest growth in five years, Lenovo noted, and its PC business is the biggest in the world with 24.4 percent market share. Lenovo says the gap between it and the number two player, HP, is the largest it’s been in 15 years. And 50 percent of Lenovo’s PC sales in the quarter were premium PCs with higher margins.

The Infrastructure Solutions Group (ISG) delivered another $5.6 billion in revenues, a gain of 37 percent YOY, with an operating profit of $202 million. This quarter was the group’s highest ever operating profits and margins, and Lenovo says it now has an AI server business pipeline of 21 billion and more than 5,800 customer AI deployments.

Lenovo’s Solutions and Services Group (SSG) added the remaining $2.6 billion in revenues, with growth at 19 percent YOY. This business has had double-digit revenue growth for over 5 years now, and 62 percent of those revenues came from Managed Services and Project and Solutions, a record.

For the full fiscal year, IDG landed at $58.9 billion in revenues, up 17 percent YOY. ISG was $19.2 billion, up 32 percent YOY, and SSG hit $10 billion in revenues for the first time, up 19 percent YOY.

Lenovo shares are on track to close at or near an all-time high Friday, Bloomberg reports, with a 17 percent surge in the stock price. Analysts praised the company for maintaining margins by offsetting rising component prices in PCs and devices with stronger than expect AI server growth.