20 February, 2025 – Lenovo Group Restricted (HKSE: 992) (ADR: LNVGY), along with its subsidiaries (‘the Group’), as we speak introduced Q3 outcomes for fiscal yr 2024/25, reporting important will increase in total group income and revenue. Income grew 20% year-on-year to US$18.8 billion, marking the third consecutive quarter of double-digit development. Web revenue greater than doubled year-on-year to US$693 million (together with a non-recurring revenue tax credit score of US$282 million) on a Hong Kong Monetary Reporting Requirements (HKFRS) foundation. The Group’s diversified development engines proceed to speed up, with non-PC income combine up greater than 4 factors year-on-year to 46%. The quarter’s outcomes have been pushed by the Group’s centered hybrid-AI technique, the turnaround of the Infrastructure Options Group, in addition to double-digit development for each the Clever Gadgets Group and Options and Companies Group.
Lenovo continues to spend money on R&D, with R&D bills up almost 14% year-on-year to US$621 million. On the latest world know-how occasion CES 2025, Lenovo launched a collection of revolutionary merchandise, together with the world’s first rollable AI laptop computer, the world’s first handheld gaming gadget that enables players free alternative of Home windows OS or Steam OS, in addition to Moto AI – successful 185 {industry} awards for its portfolio of innovation.
The Group’s innovation funding is targeted on AI, particularly constructing a foundational AI know-how platform, driving breakthroughs in agentic AI, in addition to repeatedly growing applied sciences and their purposes into merchandise. It’s main in private AI with its AI gadget improvements, whereas on the similar time proactively leveraging hybrid infrastructure and the Lenovo Hybrid AI Benefit to construct enterprise AI. It believes the present AI growth is creating huge alternatives for gadgets, infrastructure and providers – as increased inferencing effectivity and decrease computing energy price is democratizing the appliance of AI. Aligned with the Group’s hybrid AI technique, this won’t solely speed up the maturity means of gadget AI and edge AI, but additionally promote and speed up the deployment, customization, and Return on Funding (ROI) of enterprise AI.
Wanting forward, Lenovo stays dedicated to driving development by way of continued funding in hybrid AI innovation. The Group is assured that its world, versatile, and resilient provide chain—together with its manufacturing enlargement within the Center East with Alat and strategic know-how partnerships with Method 1® and FIFA—will allow it to navigate any macroeconomic uncertainties efficiently. With robust momentum demonstrated within the third quarter, Lenovo is optimistic about sustaining its development and profitability.
Chairman and CEO quote – Yuanqing Yang:
“Lenovo’s income and revenue each achieved important development final quarter, with robust efficiency throughout all core companies. Notably, the ISG enterprise returned to profitability and the smartphone enterprise skilled fast development. AI know-how, with increased effectivity and decrease prices, is accelerating the maturation of non-public AI, significantly on-device AI and edge AI. It has additionally accelerated enterprise adoption of AI. This aligns completely with the course of hybrid AI we’ve been driving and main. Wanting forward, our continued funding in innovation, mixed with our distinctive and resilient world operations, positions us nicely for sustained and worthwhile development sooner or later.”
Monetary Highlights:
Clever Gadgets Group (IDG): Double-digit income development, main in AI gadgets
Q3 FY24/25 efficiency:
- IDG delivered a powerful quarter of double-digit year-on-year income development, with income of US$13.8 billion, up 12% year-on-year.
- The PC enterprise strengthened its market management place to 24.3% market share, additional widening the result in the quantity two participant to nearly 5 factors, whereas sustaining {industry} main profitability.
- Smartphones continued with robust development, with double-digit income development year-on-year and hypergrowth in each Asia Pacific and EMEA markets.
- Wanting forward, IDG will proceed to drive the convergence of extra highly effective computing and extra environment friendly fashions right into a broad array of gadgets, whereas persevering with to drive type issue innovation. Moreover, it can optimize AI agent capabilities, improve multi-device connectivity, and construct utility ecosystems to offer seamless person experiences throughout gadgets and ecosystems.
Infrastructure Options Group (ISG): Quick development, breaking even, heading to worthwhile development
Q3 FY24/25 efficiency:
- ISG delivered an nearly 60% enhance in income year-on-year for the quarter, reaching break-even with income of US$3.9 billion.
- The outcomes have been pushed by continued hyper-growth within the Cloud Companies Supplier (CSP) enterprise, in addition to regular development within the enterprise and SMB (E/SMB) enterprise.
- Income from ISG’s AI server enterprise and industry-leading Lenovo Neptune liquid cooling options made robust contributions within the quarter, with AI server income rising steadily and Neptune increasing past supercomputing and academia to wider vertical industries.
- Wanting forward, ISG expects larger demand for hybrid infrastructure given the broader development of AI, specifically demand for public clouds in addition to on-premises information facilities, non-public clouds, and edge computing. The enterprise group is assured that it’ll obtain sustainable worthwhile development because of its clear technique, additional simplification of its product portfolio, strengthening its go-to-market capabilities, and optimizing its E/SMB enterprise mannequin.
Options and Companies Group (SSG): Report income and excessive profitability, constructing the Lenovo Hybrid AI Benefit capabilities
Q3 FY24/25 efficiency:
- SSG prolonged its double-digit year-on-year income development streak to fifteen straight quarters, with income of US$2.3 billion and an working margin of 20%.
- AI-powered options additionally drove momentum for hardware-attached providers, with an elevated person expertise, leveraging Lenovo’s {hardware} experience.
- Income from non-hardware options and providers remained SSG’s robust revenue engine and continues to develop. The mixed income combine from non-hardware-tied companies grew 5 factors year-on-year to account for almost 60% of SSG’s income.
- The AI resolution enterprise is gaining traction and constructing lighthouse circumstances for world prospects, together with delivering an enterprise AI agent platform.
- Wanting forward, SSG continues to construct capabilities below the Lenovo Hybrid AI Benefit framework, and drive premium to market development throughout all choices.
ESG and company highlights
Achievements, bulletins, and notable commitments over the previous quarter embrace:
- Lenovo was named as FIFA’s official know-how accomplice, FIFA’s prime tier sponsorship class – in a deal that features the FIFA World Cup 2026™ in Canada, Mexico, and america, and the FIFA Ladies’s World Cup 2027™ in Brazil.
- The Group was honored in prestigious ESG and Company Governance awards, together with receiving the Gold Award within the Most Sustainable Corporations/Organizations class of the Greatest Company Governance and ESG Awards, organized by the Hong Kong Institute of Licensed Public Accountants. It additionally acquired an Award of Excellence in Company Governance and Award of Excellence in ESG below the Cling Seng Index Constituent Corporations class of the “Hong Kong Company Governance and ESG Excellence Awards 2024”, organized by the Chamber of Hong Kong Listed Corporations and Hong Kong Baptist College.
- EcoVadis rated Lenovo within the prime 1% of all firms, awarding the corporate with a Platinum medal, underscoring its dedication and management of sustainability.
[1] Non-HKFRS measure was adjusted by excluding web honest worth adjustments on monetary property at honest worth by way of revenue or loss, amortization of intangible property ensuing from mergers and acquisitions, impairment and write-off of intangible property, one-time revenue tax credit score; and the corresponding revenue tax results, if any.
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About Lenovo
Lenovo is a US$57 billion income world know-how powerhouse, ranked #248 within the Fortune International 500, and serving tens of millions of consumers daily in 180 markets. Targeted on a daring imaginative and prescient to ship Smarter Know-how for All, Lenovo has constructed on its success because the world’s largest PC firm with a full-stack portfolio of AI-enabled, AI-ready, and AI-optimized gadgets (PCs, workstations, smartphones, tablets), infrastructure (server, storage, edge, excessive efficiency computing and software program outlined infrastructure), software program, options, and providers. Lenovo’s continued funding in world-changing innovation is constructing a extra equitable, reliable, and smarter future for everybody, in every single place. Lenovo is listed on the Hong Kong inventory change below Lenovo Group Restricted (HKSE: 992) (ADR: LNVGY). To search out out extra go to https://www.lenovo.com, and browse concerning the newest information through our StoryHub.
