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Lenovo Group reported a 20% increase in quarterly revenue on Thursday, reaching $15.4 billion for the three months ended in June.
Lenovo Group announced a 20% increase in quarterly revenue on Thursday, reaching $15.4 billion for the three months ending in June.
This figure exceeded the average analyst estimate of $14.1 billion, reflecting a notable rebound in the global personal computer market after a prolonged downturn.
This revenue growth marks Lenovo’s third consecutive quarter of positive performance, following five quarters of decline attributed to the post-COVID economic slowdown.
According to IDC data, global PC shipments rose by 3% to 64.9 million units in the first quarter of the year, signaling a recovery in the market. Lenovo maintained its position as the market leader with a 23% market share.
Lenovo has been actively diversifying its business beyond traditional PCs. The company’s infrastructure solutions group, which includes servers and other hardware, saw a 65% increase in revenue, totaling $3 billion.
Lenovo’s solutions and services group grew by 10%, generating $1.9 billion in revenue for the quarter. According to company chairman and CEO Yuanqing Yang, the non-PC business now accounts for 47% of Lenovo’s revenue mix, with a target of reaching 50% shortly.
The resurgence in IT spending and demand for AI-driven technology will further drive Lenovo’s growth.
The company has pioneered “AI PCs,” launching two models in May with specialized chips optimized for AI software. Yang projects that 10% of Lenovo’s shipped PCs will be AI PCs by the end of the year, with this figure potentially rising to 50-60% by 2026.
Lenovo continues to navigate geopolitical tensions, including restrictions on advanced AI technology exports between China and the U.S.
Yang stated that Lenovo adheres to regulations in all its operating regions, which helps the company manage these challenges effectively.
Lenovo reported a net income of $243 million for the quarter, surpassing the average analyst estimate of $222.94 million.
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