Chinese tech heavyweight Lenovo Group Ltd announced on Thursday that its revenue in the quarter ended December grew 20 percent year-on-year to $18.8 billion, marking the third consecutive quarter of double-digit growth as its investment in artificial intelligence drives businesses forward.
Net income more than doubled year-on-year to $693 million, including a non-recurring income tax credit of $282 million on a Hong Kong Financial Reporting Standards (HKFRS) basis.
Lenovo said its diversified growth engines continue to accelerate, with non-PC revenue mix up more than four points year-on-year to 46 percent. The quarter’s results were driven by its focused hybrid-AI strategy, the turnaround of its infrastructure solutions business, as well as double-digit growth for both the intelligent devices and solutions and services business.
Yang Yuanqing, chairman and CEO of Lenovo, said, “Lenovo’s revenue and profit both achieved significant growth last quarter, with strong performance across all core businesses. Notably, the infrastructure solutions business returned to profitability and the smartphone business experienced rapid growth.”
“AI technology, with higher efficiency and lower costs, is accelerating the maturation of personal AI, particularly on-device AI and edge AI. It has also accelerated enterprise adoption of AI. This aligns perfectly with the direction of hybrid AI we’ve been driving and leading. Looking ahead, our continued investment in innovation, combined with our exceptional and resilient global operations, positions us well for sustained and profitable growth in the future,” Yang added.
Lenovo continues to invest in R&D, with R&D expenses up nearly 14 percent year-on-year to $621 million, and the company said its innovation investment is focused on AI, specifically building a foundational AI technology platform, driving breakthroughs in agentic AI, as well as continuously developing technologies and their applications into products.
The company added that it is confident that its global, flexible, and resilient supply chain—along with its manufacturing expansion in the Middle East with Alat, a unit of the Saudi Arabian Public Investment fund, and strategic technology partnerships with Formula 1 and FIFA—will enable it to navigate any macroeconomic uncertainties successfully.
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