Lenovo Reports Strong Q3 FY24/25 Results with Double-Digit Growth and AI Innovation

March 2025 – Lenovo Group Limited (HKSE: 992) (ADR: LNVGY) announced its Q3 FY24/25 financial results, showcasing impressive growth in both revenue and profit. The Group’s revenue surged 20% year-on-year to US$18.8 billion, marking its third consecutive quarter of double-digit growth. Net income more than doubled year-on-year to US$693 million, bolstered by a non-recurring income tax credit of US$282 million. Lenovo’s non-PC revenue mix also rose significantly, reaching 46%, demonstrating its continued business diversification.

Driving Growth Through Hybrid AI Strategy

Lenovo’s focused hybrid-AI strategy played a pivotal role in its financial success. The Infrastructure Solutions Group (ISG) returned to profitability, while the Intelligent Devices Group (IDG) and Solutions and Services Group (SSG) achieved double-digit growth.

The Group continues to prioritize innovation, with R&D expenses rising by nearly 14% year-on-year to US$621 million. At CES 2025, Lenovo unveiled groundbreaking AI-powered devices, including the world’s first rollable AI laptop and a handheld gaming device supporting both Windows OS and Steam OS. The company also introduced Moto AI, securing 185 industry awards for innovation.

Segment Highlights

Intelligent Devices Group (IDG): AI-Driven Market Leadership

• Revenue rose 12% year-on-year to US$13.8 billion.
• PC market share reached 24.3%, extending Lenovo’s lead over competitors.
• Smartphones saw hypergrowth in Asia-Pacific and EMEA markets.
• Future focus: Enhancing AI agent capabilities, multi-device connectivity, and ecosystem integration.

Infrastructure Solutions Group (ISG): Breaking Even and Heading for Profitability

• Revenue soared 60% year-on-year to US$3.9 billion, reaching break-even.
• Cloud Services Provider (CSP) and Enterprise/SMB segments showed strong growth.
• AI server revenue expanded, driven by Lenovo Neptune liquid cooling solutions.
• Future focus: Scaling hybrid infrastructure solutions and optimizing product portfolio.

Solutions and Services Group (SSG): Record-Breaking Growth

• 15th consecutive quarter of double-digit revenue growth.
• Revenue hit US$2.3 billion with a 20% operating margin.
• AI-powered solutions fueled demand for hardware-attached services.
• Future focus: Expanding Lenovo Hybrid AI Advantage and AI solution offerings.

Sustainability and Corporate Milestones

Lenovo was named FIFA’s official technology partner, securing top-tier sponsorship for the 2026 FIFA World Cup and 2027 FIFA Women’s World Cup. Additionally, the Group earned multiple ESG and corporate governance awards, including a Platinum EcoVadis rating for sustainability leadership.

Looking Ahead: Sustained Innovation and Growth

Lenovo remains committed to hybrid AI investment and global expansion. With manufacturing expansion in the Middle East and key partnerships with Formula 1® and FIFA, the Group is well-positioned for sustained growth amidst macroeconomic uncertainties.

Chairman and CEO Yuanqing Yang commented:

“Lenovo’s revenue and profit both achieved significant growth last quarter, with strong performance across all core businesses. AI technology is accelerating the adoption of personal and enterprise AI, aligning perfectly with our hybrid AI strategy. Our continued investment in innovation and resilient global operations positions us well for long-term profitable growth.”

With robust Q3 momentum, Lenovo is optimistic about continuing its strong performance in the coming quarters.