Lenovo Resumes Year-on-Year Revenue Growth

During its third fiscal quarter, Lenovo reported a revenue increase of 3% year-on-year to $15.7 billion. Group profitability improved quarter-to-quarter for the second time in a row. Net income was $357 million, with net income margin up 0.4% quarter-to-quarter to 2.3%.

he diversified growth engines continued to deliver strong performance, with revenue from non-PC businesses accounting for 42% of Group revenue, up 1.3 points year-on-year. The consistent improvements over past quarters have been driven by the resilience of the Group’s core businesses and the wider effectiveness of its ongoing transformation. The SSG business hit an important milestone of passing the $2 billion revenue threshold, achieved a record high operating profit with an operating margin of over 20%, and grew revenue from managed services and project and solution services year-on-year for 11 straight quarters. The ISG business delivered quarter-to-quarter revenue growth and reached a record high of $1 billion in revenue for its storage, software, and services businesses. Overall, the IDG business resumed revenue growth, outperformed the market achieved year-on-year shipment growth for PCs, and maintained its industry-leading profitability.

“Last quarter, we delivered on our promise and resumed year-on-year revenue growth, driven by both the resilience of our core businesses and the effectiveness of the service-led transformation. Looking ahead, our commitment to AI innovation, our pocket-to-cloud computing capabilities, our full-stack portfolio of smart devices, smart infrastructure, smart solutions, and services, combined with our partnerships with other key leaders in AI, will ensure that we are well-positioned to capture the tremendous opportunities in AI,” said Yuanqing Yang, Lenovo Chairman and CEO.