Lenovo posts strong third-quarter results due to AI strategy – TechCentral.ie
24 February 2025
Lenovo Group Limited reported robust financial results for the third quarter of fiscal year 2024/25, with significant increases in both revenue and profit. Revenue increased 20 percent year-on-year to reach €18.048 billion, marking the third consecutive quarter of double-digit growth. Net profit more than doubled from last year, reaching €665.28 million (including a one-time tax gain of €270.72 million) based on Hong Kong Financial Reporting Standards (HKFRS).
The company’s diversified revenue streams are accelerating, with revenue from products other than PCs contributing more than 46% to the total mix, a significant increase from last year. This growth is attributed to Lenovo’s focused hybrid-AI strategy, the turnaround of the infrastructure solutions group (ISG) and double-digit growth in both the intelligent devices group and the solutions and services group.
Lenovo remains committed to research and development and has increased R&D spending by nearly 14% year-on-year to €596.16 million.
At CES 2025, the company unveiled a range of innovative products, including the world’s first rollable AI laptop and a handheld gaming device that gives gamers a choice between Windows OS or Steam OS. Lenovo also showcased Moto AI, which earned the company 185 industry awards for its portfolio of innovations.
The company’s innovation strategy is focused on AI, with a focus on building a fundamental AI technology platform, driving advances in agentic AI and continually developing technologies and their applications in products. Lenovo is leading the way in personal AI with its innovations in AI devices, while using hybrid infrastructure and the Lenovo Hybrid AI Advantage to develop enterprise AI. The current AI boom presents significant opportunities for devices, infrastructure and services as higher inference efficiency and lower computing power costs democratize AI applications.
In line with its hybrid AI strategy, Lenovo intends to accelerate the development of both device AI and edge AI while promoting and accelerating the deployment, adaptation and return on investment of enterprise AI. Going forward, Lenovo will continue to strive for growth by continuously investing in hybrid AI innovations.
The company is confident that its global, flexible and resilient supply chain, combined with the expansion of manufacturing in the Middle East through Alat and strategic technology partnerships with Formula 1 and FIFA, will enable it to successfully navigate macroeconomic uncertainties. Building on the strong momentum of the third quarter, Lenovo is optimistic about continuing its growth and profitability.
Business AM
Read More: Lenovo Results
Sales increased 20% year-on-year, reaching €18bn
Distributor brings suite of offerings from HCLSoftware analytics division to market
Combined entity to champion industry growth, policy advocacy
Large scale cloud migration project impresses judges
New site represents investment of €8.5m
Published by
Ltd.
source
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
Lenovo Group Limited reported robust financial results for the third quarter of fiscal year 2024/25, with significant increases in both revenue and profit. Revenue increased 20 percent year-on-year to reach €18.048 billion, marking the third consecutive quarter of double-digit growth. Net profit more than doubled from last year, reaching €665.28 million (including a one-time tax gain of €270.72 million) based on Hong Kong Financial Reporting Standards (HKFRS).
The company’s diversified revenue streams are accelerating, with revenue from products other than PCs contributing more than 46% to the total mix, a significant increase from last year. This growth is attributed to Lenovo’s focused hybrid-AI strategy, the turnaround of the infrastructure solutions group (ISG) and double-digit growth in both the intelligent devices group and the solutions and services group.
Lenovo remains committed to research and development and has increased R&D spending by nearly 14% year-on-year to €596.16 million.
At CES 2025, the company unveiled a range of innovative products, including the world’s first rollable AI laptop and a handheld gaming device that gives gamers a choice between Windows OS or Steam OS. Lenovo also showcased Moto AI, which earned the company 185 industry awards for its portfolio of innovations.
The company’s innovation strategy is focused on AI, with a focus on building a fundamental AI technology platform, driving advances in agentic AI and continually developing technologies and their applications in products. Lenovo is leading the way in personal AI with its innovations in AI devices, while using hybrid infrastructure and the Lenovo Hybrid AI Advantage to develop enterprise AI. The current AI boom presents significant opportunities for devices, infrastructure and services as higher inference efficiency and lower computing power costs democratize AI applications.
In line with its hybrid AI strategy, Lenovo intends to accelerate the development of both device AI and edge AI while promoting and accelerating the deployment, adaptation and return on investment of enterprise AI. Going forward, Lenovo will continue to strive for growth by continuously investing in hybrid AI innovations.
The company is confident that its global, flexible and resilient supply chain, combined with the expansion of manufacturing in the Middle East through Alat and strategic technology partnerships with Formula 1 and FIFA, will enable it to successfully navigate macroeconomic uncertainties. Building on the strong momentum of the third quarter, Lenovo is optimistic about continuing its growth and profitability.
Business AM
Read More: Lenovo Results
Sales increased 20% year-on-year, reaching €18bn
Distributor brings suite of offerings from HCLSoftware analytics division to market
Combined entity to champion industry growth, policy advocacy
Large scale cloud migration project impresses judges
New site represents investment of €8.5m
Published by
Ltd. source
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
