Lenovo Delivers 10áµ—Ê° Straight Quarter of Improved Profitability

Lenovo Group announced second fiscal quarter results, with profitability improving year-on-year for the 10th consecutive quarter. Net income grew 6% year-on-year to $541 million and Group revenue grew to $17.1 billion, up 3% year-on-year in constant currency. Lenovo’s Board of Directors declared an interim dividend of 8.0 HK cents per share.

All main businesses contributed positive operating profit, demonstrating further progress towards the Group’s goal of doubling profitability in the medium term. Additionally, the diversified growth engines continued to drive strong performance with both the solutions and services business, as well as the infrastructure business, seeing high double-digit year-on-year growth. Non-PC businesses now make up more than 37% of total group revenue. The Group’s healthy cash balance means it remains committed to doubling investments in Research and Development (R&D) in the medium term, having grown R&D spending by 15% year-on-year in the quarter.

While current external challenges persist, Lenovo said it remains agile and focused on pursuing its strategy and ensuring ongoing profitability by rebalancing resources towards its diversified growth engines and driving efficiencies and expense reduction through the business. It sees long-term opportunities built on its foundation of New IT - client, edge, cloud, network, and intelligence - as the global trends of digitalization and intelligent transformation accelerate.

“Lenovo once again delivered solid results, even in a challenging global market, achieving year-on-year profitability improvement for the tenth straight quarter and increasing revenue by nearly 3% (in constant currency) year on year. Our non-PC businesses are gaining momentum and now represent more than 37% of our revenue. Both solutions and services business and infrastructure business saw high double-digit revenue growth year on year,“ said Yuanqing Yang, Chairman, and CEO of Lenovo.