Lenovo Soars with Record Revenue and Profit, Fueled by Hybrid AI Strategy

Financial Triumph in Q3 FY24/25

Lenovo Group Limited has announced stellar Q3 results, showcasing impressive growth across the board. Revenue surged by an impressive 20% year-on-year, reaching US$18.8 billion – the third consecutive quarter of double-digit growth. Net income more than doubled to US$693 million, boosted by a non-recurring income tax credit.

This financial success is a testament to Lenovo's diversified growth engines, particularly its focus on non-PC revenue, which now accounts for 46% of the total, a four-point increase year-on-year. The driving forces behind these results? A targeted hybrid-AI strategy, the resurgence of the Infrastructure Solutions Group (ISG), and robust double-digit growth in both the Intelligent Devices Group (IDG) and Solutions and Services Group (SSG).

Innovation at the Forefront

Fueling this growth is Lenovo's unwavering commitment to Research & Development, with R&D expenses increasing by nearly 14% to US$621 million. This investment is evident in the groundbreaking products unveiled at CES 2025, including the world's first rollable AI laptop and a revolutionary handheld gaming device offering both Windows and Steam OS.

Lenovo's innovative spirit doesn't stop at hardware. The company is deeply invested in AI, building a foundational AI technology platform and pioneering advancements in agentic AI. From personal AI devices to enterprise AI infrastructure, Lenovo is seizing the opportunities presented by the AI boom.

The Lenovo Hybrid AI Advantage

Lenovo recognizes the transformative power of AI across devices, infrastructure, and services. The company believes that increased inferencing efficiency and reduced computing costs are democratizing AI, creating massive potential. Lenovo’s hybrid AI strategy aims to accelerate the development of device and edge AI, as well as boost enterprise AI adoption and ROI.

Looking Ahead: Continued Growth and Strategic Partnerships

Lenovo is committed to maintaining its growth trajectory through ongoing investment in hybrid AI innovation. Its resilient global supply chain, manufacturing expansion in the Middle East with Alat, and strategic partnerships with giants like Formula 1 and FIFA position the company for continued success, even amidst macroeconomic uncertainty.

“Lenovo's revenue and profit both achieved significant growth last quarter, with strong performance across all core businesses," said Yuanqing Yang, Lenovo Chairman and CEO. "AI technology, with higher efficiency and lower costs, is accelerating the maturation of personal AI... It has also accelerated enterprise adoption of AI. This aligns perfectly with the direction of hybrid AI we've been driving and leading.”

Business Group Highlights

IDG (Intelligent Devices Group) achieved double-digit revenue growth, reaching US$13.8 billion, while solidifying its market-leading position in the PC market. The smartphone business also experienced strong growth, particularly in Asia Pacific and EMEA.

ISG (Infrastructure Solutions Group) saw a remarkable near 60% increase in revenue, achieving break-even at US$3.9 billion. This turnaround was driven by hyper-growth in the Cloud Services Provider business and steady growth in the enterprise and SMB sectors. AI server revenue and Lenovo Neptune liquid cooling solutions were key contributors.

SSG (Solutions and Services Group) continued its impressive streak of double-digit revenue growth, achieving US$2.3 billion with a 20% operating margin. Non-hardware solutions and services remained a strong profit driver, while the AI solution business gained traction with key global customers.

ESG and Corporate Milestones

Lenovo further cemented its commitment to sustainability and corporate governance, earning prestigious awards and recognition. These include a FIFA technology partnership, a Gold Award for Most Sustainable Company, and a Platinum medal from EcoVadis, placing Lenovo in the top 1% of all companies for sustainability.